Alkane Resources Ltd · ASX:ALK

Alkane Resources — Investor Presentation (April 2013)

21 slides from Alkane Resources's investor presentation, Apr 17, 2013

  1. Slide 1: Corporate Presentation

    For personal use only Corporate Presentation Development Commenced First Cash Flows Early 2014 April 2013

  2. Slide 2: Location and Business Strategy

    Location and Business Strategy  Alkane is a public company (listed on ASX since For personal use only 1969)  6,100 shareholders (85% Australian)  Multi commodity exploration and development in the Central West of NSW  Active in region for more than 20 years with strong community recognition and

  3. Slide 3: Equity and Ownership

    Equity and Ownership For personal use only Equity Ownership  Shares – 372,539,000 Hedge Funds, Domestic  Options – 4,000,000 5% Institutions, 20%  Market Capitalisation – A$200M Retail and Foreign others, 34% Institutions,  Cash – A$65M (31 March 2013) 14% Directors and  Investments - ~A$75M (R

  4. Slide 4: Board & Management

    Board & Management For personal use only Board Senior Management  John Stuart Ferguson Dunlop (Chairman). BE(Min), MEngSc(Min). Mining engineer with 40 years surface and  Karen Brown (Joint Company Secretary) BEc underground mining experience in Australia and overseas.  Lindsay Colless (Joint Com

  5. Slide 5: DZP Location and Infrastructure

    DZP Location and Infrastructure For personal use only Infrastructure  Population – 80,000 Dubbo region  Rail – railway hub  Road – major highways intersection/hub  Water – numerous sources 10km  Electricity – NSW State power grid 25km  Gas – NSW State gas grid 30km  Industrial – substantial l

  6. Slide 6: DZP Resources and Reserves

    DZP Resources and Reserves For personal use only Resources & Reserves  Resources & Reserves – open at depth. Additional resource potential at nearby Railway deposit  Reserve Life – 36 years; Resources + 70 years  Major world resource - zirconium, hafnium, niobium, tantalum, yttrium & rare earth e

  7. Slide 7: DZP Process Flow Sheet

    DZP Process Flow Sheet For personal use only  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  Z

  8. Slide 8: Demonstration Pilot Plant

    Demonstration Pilot Plant For personal use only Y and HREE refiningand recovery DPP Filtration, PLS, SX, Zr and Nb recovery Zirconium refiningand precipitation Reverse osmosis and water recycle Operating at ANSTO since 2008 8

  9. Slide 9: Environmental Impact

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

  10. Slide 10: DZP Marketing

    DZP Marketing For personal use only Off-take Memorandums of Understandings (MOU’s) / Agreements MOU Product Details 1 Zirconium Leading Chemical Company to develop applications for zirconia produced by DZP 2 Zirconium Australian Mintech Chemical Industries to produce zirconium oxychloride 3 Zirconiu

  11. Slide 11: DZP Product Output

    DZP Product Output For personal use only 100% 4% 911t $149.4M 90% 18% 3,997t 30% 80% 9% 1,967t 70% $118.7M 60% 24% 50% 15,827t 40% $81.5M 16% 70% 30% 20% $153.9M 31% 10% 0% Production 22,702T Revenue A$503.5M ZrO2 Nb metal LREO concentrate HREO concentrate 11

  12. Slide 12: DZP Feasibility Study

    DZP Feasibility Study For personal use only DUBBO ZIRCONIA PROJECT Financial Summary for 20 year life in A$ Project Capacity 1,000,000 tonnes pa Capex – Plant $396.8M Sulphuric Acid Plant $116.6M Infrastructure + Owners $253.4M SUB TOTAL $766.8M EPCM $63.5M Contingency (20%) $166.1M TOTAL $996.4M An

  13. Slide 13: DZP Plant Layout

    DZP Plant Layout For personal use only Roasting and leaching Solvent extraction Crushing and grinding Zirconium and niobium recovery and refining Rare earth recovery and refining Sulphuric acid plant Office and workshops 13

  14. Slide 14: DZP Financing Program

    DZP Financing Program For personal use only Credit Suisse (Australia) Limited (“CS”), Sumitomo Mitsui Banking Corporation (“SMBC”) and Petra Capital Pty Limited (“Petra”) to provide investment banking services, including the arrangement of project financing to fund the development of the Dubbo Zirco

  15. Slide 15: DZP Development pathway

    DZP Development pathway 2009 2010 2011 2012 2013 2014 2015 2016 For personal use only Resource definition 2001 - 2002  Flow sheet development 2002  Laboratory Zr – Nb 1999 –2002  Pilot plant Zr – Nb 2002  Continued product Mine Plan & Scheduling 2002  development Plant Design & Engineering 2002

  16. Slide 16: TGP Summary

    TGP Summary Current Project Activities For personal use only  Project approval by NSW Department of Planning and Infrastructure late July 2012. Mining Lease approved February 2013  Resource – 12.6 Mt @ 2.0g/t (812,000oz)  CAPEX – A$107M  Throughput – 1.0Mtpa  Head Grade – 2.00g/t  Recoveries –

  17. Slide 17: TGP Geology

    TGP Geology Geological Summary – Wyoming / Caloma For personal use only Pelitic Sediments Feldspar porphyry Volcaniclastic sediments Graphitic mudstone Volcaniclastic conglomerate Epidote altered volcanics Chlorite-talc schist Andesitic volcanics Mineralisation Additional Resource Potential Caloma u

  18. Slide 18: Outlook

    Outlook For personal use only  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 at around ~A$250Mpa Production costs – spread across the four metal outputs which

  19. Slide 19: 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

  20. Slide 20: Resource & Reserves: Dubbo + Galwadgere

    Resource & Reserves: Dubbo + Galwadgere Dubbo Zirconia Project – Mineral Resources For personal use only 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

  21. Slide 21: Resource & Reserves: Tomingley + Peak Hill

    Resource & Reserves: Tomingley + Peak Hill Tomingley (TGP) – Mineral Resources For personal use only 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 2,316,550 2

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