Alara Resources Limited · ASX:AUQ
Alara Resources — Investor Presentation (March 2013)
30 slides from Alara Resources's investor presentation, Mar 18, 2013
Slide 1: ASX/Media Release: Investor Presentation
Alara Resources Limited Telephone | +61 8 9214 9787 A.B.N. 27 122 892 719 Facsimile | +61 8 9322 1515 Level 14, The Forrest Centre Web | www.alararesources.com 221 St Georges Terrace Email | info@alararesources.com Perth Western Australia 6000 ASX/MEDIA RELEASE Monday, 18 March 2013 Investor Present
Slide 2: Investor Presentation March 2013
Alara Resources Limited Investor Presentation March 2013 ASX: AUQ www.alararesources.com www.alararesources.com
Slide 3: Company Profile
Company Profile Board of Directors Company Data Ian Williams AO ASX Code AUQ Chairman Market Capital (13 March 2013) $34M 40+ years of mining industry experience, including Hamersley Iron, Rio Tinto, Century Zinc and Pasminco Issued Capital Awarded Order of Australia for services to Indigenous - Sha
Slide 4: Key Projects Summary
Key Projects Summary Saudi Arabia: Khnaiguiyah Zinc-Copper Project (50%) • DFS upgraded from 1.5Mtpa to 2Mtpa throughput; completion in April 2013. • Production profile ~90,000tpa zinc and 6,250tpa copper in the first four years. • Total mine life of 14 years. • Capex estimated at US$225M plus US$32
Slide 5: Project Locations
Project Locations Khnaiguiyah (50%) Washihi (75% Earn In) Zinc-Copper, Saudi Arabia Copper-Gold, Oman Khnaiguiyah & Marjan Washihi & Daris Projects Projects (Saudi Arabia) (Oman) Perth Marjan (50%) Daris (50%) Zinc-Gold-Silver, Saudi Arabia Copper-Gold, Oman © Alara Resources Limited www.alararesour
Slide 6: Saudi Arabia
Saudi Arabia • 380km2 of licence areas, including a granted mining licence • Environmental permit granted • Land for sourcing water acquired (15kms from the proposed mine) © Alara Resources Limited www.alararesources.com 5
Slide 7: Khnaiguiyah Zinc-Copper Project
Khnaiguiyah Zinc-Copper Project • All deposits remain open along strike and depth • Considerable upside along known and other shear zones yet to be explored • Campaign mining and processing of distinct zinc, zinc-copper and copper ‘domains’ • Standard processing - crushing, grinding, copper and zinc
Slide 8: Khnaiguiyah DFS Update
Khnaiguiyah DFS Update DFS is nearing completion • Final DFS report expected April 2013 • Annual mine scheduling, and quarterly mine scheduling for first four years, completed • Capital cost estimate US$257M including US$32M in contingencies/other • Plant throughput increased from 1.5Mtpa to 2Mtpa •
Slide 9: DFS Update – Mining & Milling
DFS Update – Mining & Milling The current plan sees mining completed in 9 years. Processing from years 10 to 14 will be from the stockpiles at 2Mtpa. Mining Total • Mined & Processed (tonnes, Years 1 to 9) 18,000,000 • Mined grade (Zn) 4.0% • Mined grade (Cu) 0.34% • Strip ratio (waste:ore) 8:1 • St
Slide 10: DFS Update – Production & Costs
DFS Update – Production & Costs Production Total • Mine life 14 years • Average annual production first 4 years (Zn) 90ktpa • Average annual production first 4 years (Cu) 6.25ktpa • Average annual production first 7 years (Zn) 82.5ktpa • Average annual production first 7 years (Cu) 5.8ktpa Costs (pe
Slide 11: Expected Production Output
Expected Production Output 140 Zn production (kt) Cu production (kt) 120 100 80 60 40 20 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 © Alara Resources Limited www.alararesources.com 10
Slide 12: Zinc Price Forecasts
Zinc Price Forecasts Current Price Khnaiguiyah Targeting production of 72,000t to 120,000t zinc as concentrate © Alara Resources Limited www.alararesources.com 11
Slide 13: DFS - Capex Summary
DFS - Capex Summary • Capex based on a contracting strategy and fixed lump sum prices • Mobile mining equipment is proposed to be leased • Tender bids have been received, reviewed and compiled into the Capex as follows: Item US$M Process facilities including design, engineering, procurement, 157 con
Slide 14: Funding
Funding • The Saudi Arabia Industrial Development Fund (SIDF) provides loans of up to 75% for industrial and mining development in Saudi Arabia • SIDF has advanced over US$25 billion since inception (1974) • SIDF advanced US$2.2B in 2011, including financing of Al Masane Copper-Zinc Project (US$88M)
Slide 15: Saudi Industrial Development Fund (SIDF)
Saudi Industrial Development Fund (SIDF) • Established by royal decree (1974) to issue soft loans for the private sector to help develop and enlarge the industrial base of the Kingdom. • Projects must be financially and technically viable – a feasibility study is required • The SIDF Provides finance
Slide 16: JV Partner - Manajem (United Arabian Mining Company)
JV Partner - Manajem (United Arabian Mining Company) • Set up in 2004 – one of the first Saudi private companies in the mining sector • Board comprises: ¾ Chairman – Engr. Mohamed Abdalah Al Hatlani (25% shareholder) ¾ CFO/Deputy Chairman – Mr. Nassir Ali Al Agel (33.3%) ¾ Director – Engr. Mohammad
Slide 17: Timetable
Timetable 2011 2012 2013 2014 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Finalise formal JV agreements 9 Mining Licence granted to project* 9 Establish office in Riy
Slide 18: Management Team
Management Team Shanker Madan – Managing Director 35+ years of mining industry experience, including BHP, Rio Tinto and Hamersley Iron. Justin Richard – Country Manager, Saudi Arabia 20+ years of experience, including Corporate Counsel and head of legal for UGL Limited’s resources division, Senior C
Slide 19: Site Layout
Site Layout Processing Plant The processing plant Co-Disposal Facility will be located between Mineralised Zones 2 and 3. K2 Pit Accommodation K1 Pit The accommodation Low Grade camp is being Stockpile Pad designed to house up to 500 people (including families) Processing Plant with a total fenced-i
Slide 20: Conceptual Site Model
Conceptual Site Model © Alara Resources Limited www.alararesources.com 19
Slide 21: Drill Hole Locations
Drill Hole Locations Total drilling: 71,816m in 622 drill holes Zone 1: 8,245m in 88 drill holes (50m x 50m) Pit size 650m x 300m Zone 2: 25,839m in 245 drill holes (25m x 50m) - Pit size 1,300m x 500m Zone 3: 33,698m in 263 drill holes (12.5 - 25m x 25 - 50m) - Pit size 900 x 600m Zone 4: 4,034m in
Slide 22: Significant exploration upside
Significant exploration upside Zinc and copper mineralisation is focused along the carbonatised shear zones. Numerous additional shears have been identified and are yet to be drilled. Strong potential exists to significantly grow the resource base. Zone 4 is yet to be drilled out. © Alara Resources
Slide 23: Khnaiguiyah Zone 2 – Section 11
Khnaiguiyah Zone 2 – Section 11 © Alara Resources Limited www.alararesources.com 22
Slide 24: JORC Resource Statement
JORC Resource Statement The current JORC Resources at Khnaiguiyah are: • Measured & Indicated (Domains 1 & 2) – 25.32Mt @ 4.03% Zn and 0.17% Cu • Measured & Indicated (Domain 3) – 8.53Mt @ 0.64% Cu • Inferred (Domains 1 & 2) – 4.32Mt @ 2.90% Zn and 0.03% Cu Table 1: Khnaiguiyah JORC Measured and Ind
Slide 25: Oman
Oman © Alara Resources Limited www.alararesources.com 24
Slide 26: Washihi Copper-Gold Project
Washihi Copper-Gold Project The Washihi Copper-Gold Project is located approximately 100km south-southeast of Alara’s Daris Copper-Gold Project and adjacent to a high quality bitumen road. Initial JORC Resource estimate1 (excludes the recent drilling outlined below): • 6.9Mt Inferred @ 0.76% Cu and
Slide 27: Conclusions
Conclusions • Strong Team – in place and highly experienced • Supportive Government – mining licence and environmental approvals received • Long life, Low cost – 14 year mine life, strong margins • Attractive Payback – higher production and lower costs in early years • Growing Resource – 39Mt curren
Slide 28: Pipeline Summary
Pipeline Summary Design / Exploration Feasibility Production Construction JORC Measured and Indicated Resource Saudi Arabia: Khnaiguiyah Zinc, Copper (Alara 50%) • 25.32 million tonnes @ 4.03% Zn & 0.17% Cu; • DFS completion expected in Q1 2013. Plus: • +71,000m drilling completed. • 8.53 million to
Slide 29: JORC Code Competent Person Statements
JORC Code Competent Person Statements The information in this presentation that relates to Zinc and Copper Mineral Resources within Mineralised Zones 1, 2 and 4 in relation to the Khnaiguiyah Project (Saudi Arabia) is based on information compiled by Mr Ravindra Sharma, who is a Chartered Profession
Slide 30: Alara Resources Limited
Alara Resources Limited ABN: 27 122 892 719 ASX Code: AUQ Level 14, The Forrest Centre 221 St Georges Terrace Perth, Western Australia 6000 Telephone: +61 8 9214 9787 Facsimile: +61 8 9322 1515 info@alararesources.com www.alararesources.com DISCLAIMER This presentation contains certain forecasts and