Alkane Resources Ltd · ASX:ALK

Alkane Resources — Investor Presentation (January 2012)

34 slides from Alkane Resources's investor presentation, Jan 24, 2012

1. Slide 1: Cover letter to ASX: updated corporate presentation

   RESOURCES L TD ABN 35 000 689 216 For personal use only 24 January 2012 Manager Announcements Company Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION Attached is a copy of the Company’s updated corporate presentation. A copy of this presentation will also be

2. Slide 2: Corporate Presentation January 2012

   For personal use only January 2012

3. Slide 3: Equity & Ownership

   Equity & Ownership For personal use only Equity Ownership  Shares – 269,028,158  Options – nil  Share price – A$1.00  Market Capitalisation – A$269M  Cash – A$9M (31 Dec 2011)  Debt – nil  Share turnover – A$55M per month (average 2011)  12 Month Low/High – A$0.89/$2.73  Codes – ALK (ASX) A

4. Slide 4: Location and Business Strategy

   Location and Business Strategy For personal use only Location  Multi commodity explorer and miner – focussed in the Central West of New South Wales, Australia Region with substantial existing infrastructure.  Dubbo Zirconia Project – world class resource of zirconium, hafnium, niobium, tantalum, y

5. Slide 5: Board & Management

   Board & Management For personal use only Board Senior Management  John Stuart Ferguson Dunlop (Chairman). BE(Min),  Terry Ransted (Chief Geologist). Geologist with 29 years MEngSc(Min). Mining engineer with 40 years surface and experience in many facets of exploration and regional underground mini

6. Slide 6: Operations Team

   Operations Team For personal use only BOARD Managing Director Ian Chalmers Company Secretary Commercial Manager Chief Geologist General Manager NSW Environmental Consultants Lindsay Colless CFO Tony Wright Terry Ransted Mike Sutherland R W Corkery Pty Ltd Karen Brown Commercial & Legal Technical Man

7. Slide 7: Assets

   Assets For personal use only Alkane Resources Emerging Producers Advanced Resources Exploration Discoveries Exploration Moorilda 100% Dubbo Zirconia 49% 100% Bodangora 100% Project McPhillamys Calula Glen Hollow Newmont 100% Tomingley Gold 100% 100% Wellington 100% Peak Hill Diamond Creek Project Ga

8. Slide 8: Project Locations

   Project Locations For personal use only Emerging Producers  Dubbo – 400km NW of Sydney  Tomingley – 50km SW of Dubbo  McPhillamys – 35km SE of Orange Exploration  Bodangora – 40km SE of Dubbo  Wellington – 50km SE of Dubbo  Cudal – 40km W of Orange McPhillamys 7

9. Slide 9: Dubbo Zirconia Project

   Dubbo Zirconia Project For personal use only Outcrop of Toongi deposit 8

10. Slide 10: Infrastructure

    Infrastructure For personal use only Infrastructure  Population – 80,000 Dubbo regional  Rail – railway hub  Road – major highways intersection/hub  Water – numerous sources  Electricity – NSW State power grid  Gas – NSW State gas grid  Industrial – substantial light industry  Agriculture –

11. Slide 11: Resources & Reserves

    Resources & Reserves For personal use only Resources & Reserves  Resources & Reserves – open at depth  Life – +20 years but can support longer life and higher production rates  Major world resource ‐ zirconium, hafnium, niobium, tantalum, yttrium & rare earth elements Resources Depth (m) Tonnes (

12. Slide 12: Product Output & Revenues

    Product Output & Revenues For personal use only 1.0Mtpa Throughput  39% of revenue – Zirconium  22% of revenue – Niobium  21% of revenue – LREE  18% of revenue – YHREE Anticipated Production & Revenues (1.0Mtpa) Products Price/kg predicted Price/kg used Production / Sales Revenues Revenue % Zirc

13. Slide 13: DFS Financials

    DFS Financials For personal use only Definitive Feasibility Study DUBBO ZIRCONIA PROJECT Financial Summary (A$)  Base case – 0.4Mtpa (superseded) Project Capacity 0.4Mtpa 1.0Mtpa  Current case – 1.0Mtpa (base case) Capex – Plant1 $278M $543M  CAPEX – $893M ($751M pre‐contingency)  EBITDA – $308M

14. Slide 14: Process Plant

    Process Plant For personal use only Processing  Demonstration Pilot Plant – established 2008  ANSTO – Aust. Nuclear Science & Tech. Org.  Process – unique & advanced  Optimization – ongoing  Sulphuric acid leach whole of ore  Solvent extraction, separation & refining  Chemical precipitation 

15. Slide 15: Radionuclides

    Radionuclides For personal use only Uranium & Thorium  ANSTO – assists with management of radionuclides, such as uranium & thorium  Radioactive elements – low levels contained within the deposit (100ppm U & 450ppm Th)  Innovative process – no concentrate produced (uranium/thorium not concentrated

16. Slide 16: Marketing

    Marketing For personal use only Off‐take  Zirconium (39% of revenue) – 100% under MOU  Niobium (22% of revenue) – 100% under MOU  LREE (21% of revenue) – advanced negotiations  YHREE (18% of revenue) – advanced negotiations  Throughput – there are four MOU’s which virtually guarantee production

17. Slide 17: Environmental Impact

    Environmental Impact For personal use only Environmental Impact Statement – key areas of focus  Existing land use (agriculture)  Air quality  Noise and vibration  Surface and ground water  Soil stability  Flora and fauna  Biodiversity  Visibility  Rail freight movements  Road traffic  Abo

18. Slide 18: Zirconium

    For personal use only 17 Zirconium

19. Slide 19: Niobium

    For personal use only 18 Niobium

20. Slide 20: Rare Earth Elements

    Rare Earth Elements For personal use only 19

21. Slide 21: DZP Timetable

    DZP Timetable For personal use only ‐> 2009 2010 2011 2012 2013 2014 DZP Resource definition 2001 ‐ 2002  Flow sheet development 2002  Laboratory Zr – Nb 1999 – 2002  Continued product Pilot plant Zr – Nb 2002  development Mine Plan & Scheduling 2002  Plant Design & Engineering 2002  Laborator

22. Slide 22: Tomingley Gold Project

    Tomingley Gold Project For personal use only TGP Processing plant 21

23. Slide 23: Tomingley Gold Project Highlights

    Tomingley Gold Project For personal use only Project Highlights  CAPEX – A$95M ($48M plant; $23M infrastructure; $23M owners costs)  Throughput – 1.0Mtpa  Head Grade – 1.88g/t  Recoveries – 93%  Gold Production – 50,000ozpa  Cash Costs – A$942/oz  Life – 7.5years (targeting +10 years)  Resou

24. Slide 24: Tomingley Gold Financials

    Tomingley Gold Financials For personal use only Financial Highlights  EBITDA – $30Mpa (average)  NPV – A$79M @ A$1,700/oz (circa 40% hedged)  Debt & Hedging – mandate with Credit Suisse to provide up to A$45M debt facility + gold hedging  Hedging – flat forwards for 3.5 years Financial Summary G

25. Slide 25: McPhillamys Gold Project (49%)

    McPhillamys Gold Project (49%) For personal use only Core drilling at McPhillamys 24

26. Slide 26: McPhillamys Gold Project Highlights

    McPhillamys Gold Project For personal use only Project Highlights  Joint venture – Newmont has 51% but may go to 75%  Resource (+0.3g/t cut) – 92Mt @ 1.0g/t gold (3.0Moz)  Resource (0.5g/t cut) – 61Mt @ 1.3g/t gold (2.6Moz)  Copper credits (<0.1%)  Mining method – open cut or block cave  Recov

27. Slide 27: Exploration

    Exploration For personal use only Core drilling at Bodangora 26

28. Slide 28: Exploration Discoveries 2010-2011

    Exploration For personal use only Discoveries in 2010‐2011  Bodangora (100%) – NSW. Glen Hollow gold‐copper: – 46m @ 0.9g/t gold & 0.25% copper – 18m @ 1.7g/t gold & 0.45% copper  Wellington (100%) – NSW. Galwadgere copper‐gold: – 2Mt @ 1.0% copper & 0.3g/t gold (with upside) – 14m @ 0.9% copper &

29. Slide 29: Project Timetable

    Project Timetable For personal use only TIMETABLE 2010 2011 2012 2013 2014 2015 TOMINGLEY GOLD Definitive Feasibility Study (DFS) Environmental Assessment / DC Project Financing @ $A90M Construction Production DUBBO ZIRCONIA Definitive Feasibility Study (DFS) Environmental Assessment / DC Project Fi

30. Slide 30: Outlook

    Outlook For personal use only Conclusion  Dubbo Zirconia Project (DZP): – Global Strategic Significance – a long term, significant project in the zirconium and heavy rare earth industries, which can generate substantial cash flows – Production costs – spread across the four metal outputs which will

31. Slide 31: Disclaimer

    Disclaimer For personal use only Disclaimer This presentation contains certain forward looking statements and forecasts, including possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, industry growth o

32. Slide 32: Resource & Reserves: Tomingley + Peak Hill

    Resource & Reserves: Tomingley + Peak Hill For personal use only Tomingley (TGP) – Mineral Resources DEPOSIT MEASURED INDICATED INFERRED TOTAL Top Cut Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade Gold 2.5x2.5x5.0m model (t) (g/t) (t) (g/t) (t) (g/t) (t) (g/t) (koz) Wyoming One 2,227,000 2

33. Slide 33: Resource & Reserves: Dubbo + Galwadgere

    Resource & Reserves: Dubbo + Galwadgere For personal use only Dubbo Zirconia Project – Mineral Resources Toongi Tonnage ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 REO U3O8 Deposit (Mt) (%) (%) (%) (%) (%) (%) (%) Measured 35.70 1.96 0.04 0.46 0.03 0.14 0.75 0.014 Inferred 37.50 1.96 0.04 0.46 0.03 0.14 0.75 0.014 T

34. Slide 34: McPhillamys Resource Statement

    McPhillamys Resource Statement For personal use only Moorilda – McPhillamys – Mineral Resources DEPOSIT INDICATED INFERRED TOTAL McPhillamys Tonnage Grade Grade Tonnage Grade Grade Tonnage Grade Grade k Ounces tonnes 0.3g/t Au cut-off (t) (g/t) % Cu (t) (g/t) % Cu (t) (g/t) % Cu gold copper Inner Or

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