Slide 1: Dubbo Zirconia Project
ALKANE RESOURCES LTD AUSTRALIAN ZIRCONIA LIMITED Dubbo Zirconia Project Community Meetings October 2013 MULTI-COMMODITY MINER EXPLORER www.alkane.com.au
Slide 2: Corporate Snapshot
Corporate Snapshot • Listed on ASX since 1969, also listed on OTCQX (US) • 6,100 shareholders (85% Australian) • MulE commodity explorer, miner and developer focused on Central West of NSW • AcEve in region for more than 20 years • Developed Peak Hill Gold Mine in 1996, operated to 2005 • Tomingley
Slide 3: Operations – Peak Hill Gold Mine
OperaEons – Peak Hill Gold Mine 3
Slide 4: Operations – Tomingley Gold Project
OperaEons – Tomingley Gold Project Base case staEsEcs § Project approval by NSW Department of Planning and Infrastructure late July 2012. § Mining Lease approved February 2013 § Resource – 812,000oz of gold § CAPEX – A$107M § Throughput – 1.0Mtpa § Mine method – open cut & underground § Life
Slide 5: Dubbo Zirconia Project
Dubbo Zirconia Project • A very large* polymetallic resource of the metals zirconium (hafnium), niobium (tantalum), ykrium and rare earths • Important and strategic metal mix, including 25% heavy rare earth • Open pit life of at least 70 years • Demonstrated flow sheet with pilot plant and products f
Slide 6: Rare Metals – Rare Earths
Rare Metals -‐ Rare Earths Rare Metals – Rare Earths • China produces 90% of world downstream zirconium chemicals & 50% of fused zirconia • China currently produces 80-‐90% of world REE output • China is limiEng the export of raw rare Rare metals earths materials • Brazil produces 85% of world nio
Slide 7: Zirconium Applications
ALKANE RESOURGES LTD Zirconium Applications GD 2usreaian ZIRCONIA LTD (A suesioiaay oF ALKANE RESOURCES LTO) -Sonar Catalysts -Automotive ~~ ~Gasoline & diesel ~~ -Industrial pollution Pa -Petroleum refining control ) -Fuel cells X Wear —— -Engineering ceramics -Thermal Barrier coatings -Milling med
Slide 8: Niobium Applications
ALKANE Niobium Applications GI austrian zirconia Lro IA SuMsiOlARy OF ALKANE RESOURCES LrO! APPLICATIONS FOR NIOBIUM MATERIALS Fad Special Steels - HSLA* _— Alloys _ Capacitors t ic motors - Weight reduction for fuel efficiency - turbine blades - Pipelines t -Mobile electronics - Bridges J - : hess
Slide 9: Rare Earth Applications
ALKANE Rare Earth Applications GI austrian zirconia Lro [A SuMsiOlARy OF ALKANE RESOURCES LrO! APPLICATIONS FOR RARE EARTH MATERIALS Electronics -Display phosphors | (CRT, PDP, LCD) -Medical imaging > phosphors Ceramics Catalysts Lasers -Capacitors -Automotive catalytic converter -Fibre Optics ~Sens
Slide 10: The DZP Team
The DZP Team Environment R W Corkery & Co Pty Ltd: Alex Irwin + Twelve Specialist Consultants Alkane General – Australian Zirconia Limited Manager NSW: Michael Sutherland Chief OperaEons Officer: Nicholas Earner Chief Geologist: Terry Ransted Commercial Manager: Brendan Ward Tony Wright Chief Financia
Slide 11: Specialist Consultants – EIS
Specialist Consultants – EIS © 11
Slide 12: DZP Infrastructure
DZP Infrastructure • Project proximal to exisEng infrastructure • Proposed upgrade of 27km Obley Road to B-‐double standard • Proposed refurbishment/upgrade of Dubbo-‐Toongi secEon of railway (closed 1987) for 92t wagons • Proposed 30km gas pipeline in rail corridor • Proposed 132kV power line Geu
Slide 13: DZP Geology
DZP Geology Jurassic aged (190 million years) trachyte intrusive or lava flow. Formed part of a large regional volcano centered on Dowds Hill Trachyte is a weakly radioactive alkaline volcanic rock © 13
Slide 14: DZP Process Flow Sheet
DZP Process Flow Sheet § Simple open cut mining operaEon § Crushing and grinding § Sulphuric acid, roast, leach whole of ore § Solvent extracEon, separaEon & refining None of the products are toxic or dangerous © 14
Slide 15: DZP Commercial Plant
ALKANE . RESOURCES LTO DZP Commercial Plant ie hi See ing FeNb circuit
Slide 16: DZP Environment
DZP Environment Alkane has a 25 year history of sustainable mine management EIS lodged 28 June and addresses all environmental aspects Water • 70% recycle of process water currently achievable • Limited groundwater aquifers – minimal impact • Water secured from exis5ng water licences Transport • Mix
Slide 17: Site Development to Year 1
Site Development to Year 1 Toongi Hall ExisEng Site Site Year 1 17
Slide 18: Site Development Years 1 to 20
Site Development Years 1 to 20 Site Year 1 Site Years 15 to 20 © 18
Slide 19: Final Site Rehabilitation
Final Site RehabilitaEon Progressive Biodiversity Offset PlanEng Final Landforms © 19
Slide 20: Visual Impact – west of Obley Road
Visual Impact – west of Obley Road © 20
Slide 21: Visual Impact – on Obley Road
Visual Impact – on Obley Road © 21
Slide 22: Surface and Ground Water
Surface and Ground Water Surface water run off Ground water monitoring bores Mine does not reach water table in Year 20 22
Slide 23: Dust
Dust Airborne dust PM2.5 -‐ Year 15 Deposited dust -‐ Year 5 © 23
Slide 24: Noise
Noise Noise maximum day and night -‐ Year 5 Day Eme and Night Eme -‐ Maximum 35 to 50Db Normal background noise ~30Db Typical yard / farm equipment Equipment Noise Level Back Hoe 85-95 decibels Chain Saw 110 decibels Front-end Loader 90-95 decibels Gunshot 140 decibels Jackhammer 112 decibels Lawn
Slide 25: Radioactivity
RadioacEvity Radon concentraEon (Bq/m3) at Year 15 Predicted dose of • InhalaEon of Radon Rn222 – 0.0075 mSv/year • InhalaEon of Dust -‐ 0.020 mSv/year Average Australian natural background radiaEon annual dose (per adult) -‐ 1.5-‐2mSv • 0.6-‐1.1mSv radon • 0.3mSv terrestrial • 0.3mSv cosmic rad
Slide 26: Process Reagents
Process Reagents Reagent Tonnage pa Source ADG Sulphur 104,000 Newcastle No Salt 91,000 Victoria No Limestone 194,000 Geurie No Quicklime 31,000 Charbon No Hydrochloric Acid 42,400 Newcastle Yes CausEc Soda 24,350 Newcastle? Yes Ammonia 9,700 Newcastle? Yes Sodium Sulphate 29,500 Newcastle? No Soda
Slide 27: Transport
Transport • Detailed traffic and impact study offered three opEons for bulk transport A Rail to Toongi. Approx 3 trains per week and road for materials not suitable for rail B Rail to Dubbo and road to Toongi. Transfer at Dubbo C Road. All road Daily vehicle movements Light Heavy Period Option Oversize
Slide 28: Forecast Traffic 2016
ALKANE RESOURGES LTD Forecast Traffic 2016 Mitchell Hwy - west of Sheraton Rd, Dubbo Mitchell Highway - Cobra Street — Near Apex Oval Newell Hwy - south of Mitchell Hwy Newell Hwy - 1.5km south of Mitchell Hwy Obley Road - between Newell Hwy & Zoo entry Obley Road - 100m East of Zoo entry Obley Road
Slide 29: Forecast Traffic 2016 Option C - Heavy Vehicle
Forecast Traffic 2016 OpEon C -‐ Heavy Vehicle © 29
Slide 30: Forecast Traffic 2016 Option C - All Vehicle
Forecast Traffic 2016 OpEon C -‐ All Vehicle 30
Slide 31: Forecast Traffic 2016 Option C - All Traffic
Forecast Traffic 2016 OpEon C -‐ All Traffic © 31
Slide 32: Key Challenges for Rail
Key Challenges for Rail Road versus rail for half of transport task • No existing supply of 4 key DZP reagents in Newcastle • Capital cost of rail upgrade to Class 1 track $30M • Supply of new purpose-built rolling stock • Pathing through coal traffic to Newcastle • Community acceptance of rail re-o
Slide 33: Economic Benefits to Region
Economic Benefits to Region • ConstrucEon work force ~300 -‐ 400 (over 18-‐24 months) • Creates 250 permanent jobs, est 80% sourced locally • Approximately $40M pa ($800M over 20 years) in salaries/ wages, uEliEes, plus other suppliers into local economy • State royalEes $10M pa ($200M over 20 year
Slide 34: DZP Major Milestones
DZP Major Milestones Major Milestones 2013 2014 2015 2016 Environmental Impact Statement Project Approval Process Project Financing Program EPC / EPCM tender à award Detailed design / Long lead orders CONSTRUCTION PRODUCTION © 34
Slide 35: Mining the metals of the future
ALKANE RESOURCES LTD AUSTRALIAN ZIRCONIA LIMITED Mining the metals of the future The image part with relationship ID rId3 was not found in the file. MULTI-COMMODITY MINER EXPLORER www.alkane.com.au
Slide 36: DZP Resource & Reserves
DZP Resource & Reserves Dubbo Zirconia Project – Mineral Resources Toongi Tonnage ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 REO Deposit (Mt) (%) (%) (%) (%) (%) (%) Measured 35.70 1.96 0.04 0.46 0.03 0.14 0.75 Inferred 37.50 1.96 0.04 0.46 0.03 0.14 0.75 Total 73.20 1.96 0.04 0.46 0.03 0.14 0.75 These Mineral Reso
Slide 37: Regional Ground Water
Regional Ground Water © 37
Slide 38: Design of LRSF (Crystallisation cells)
Design of LRSF (CrystallisaEon cells) © 38
Slide 39: Radiation Doses
RadiaEon Doses Naturally Occurring Radioactive Materials (NORM) are in the ground, food and air 20.0mSv Annual dose limit for radiation workers 1.5-2mSv Average Australian natural 6.9mSv CT Scan background radiation annual dose (per adult) 0.6-1.1mSv radon 1.0mSv Annual dose limit recommended for 0.