Slide 1: ASX cover letter: Presentation
R ES O U RCES L TD AB N 3 5 0 0 0 6 8 9 2 1 6 For personal use only 3 November 2010 Manager Announcements Company Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION Attached is a copy of Dubbo Zirconia Project Marketing Presentation to be delivered in Hong Kong
Slide 2: Dubbo Zirconia Project Marketing Presentation, Hong Kong
For personal use only Dubbo Zirconia Project NSW Australia Marketing Presentation Hong Kong November 2010
Slide 3: Corporate snapshot
Corporate snapshot For personal use only Shareholder profile* Exchanges ASX: ALK ADR: ANLKY Share Price (29 October 2010) A$0.78 Shares 249m Fully Diluted Market Cap ~A$195m C h (at Cash ( t 30 SSeptember t b 2010) ~A$6 8 ~A$6.8m Retail Top 20 ~60% Institutions No debt Directors & Management 3% 12 M
Slide 4: DZP Location
DZP Location For personal use only Central West New South Wales
Slide 5: Business Strategy
Business Strategy For personal use only Multi commodity explorer and miner, focussed in the Central West of New South Wales, Australia Dubbo Zirconia Project – world class resource of zirconium, hafnium, niobium, tantalum, yttrium and rare earths Au Cu Gold production from Peak Hill mine 1996 – 2005
Slide 6: Rare Metals - Rare Earths
Rare Metals ‐ Rare Earths For personal use only Rare Metals – Rare Earths • China produces 90% of world downstream zirconium chemicals • China is limiting the export of raw rare earths materials • China currently produces 95% of world Rare metals REE output • Brazil produces 90% of world niobium Lig
Slide 7: Dubbo Zirconia Project Location
Dubbo Zirconia Project Location For personal use only D bb region Dubbo i pop 80,000 80 000 State power grid State gas grid Major mixed agriculture Transport hub Substantial light industry
Slide 8: DZP Geology
DZP Geology For personal use only 0 200 metres J Jurassic i aged d trachyte t h t intrusive i t i
Slide 9: DZP Resources
DZP Resources For personal use only Measured Resource : 35.7 million tonnes grading 0 - 55 metres 1.96% Zr02, 0.04%HfO2, 0.46% Nb2O5 , 0.03% Ta2O5 , 0.14% Y2O3, 0.75% REO and 0.014% U3O8 Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres TOTAL : 73.2 million tonnes Major world
Slide 10: DZP Program
DZP Program For personal use only Resource drilling completed 2001. Flow sheet developed 1999 to 2002, with trials t mini to i i pilot il t plant l t scale. l Detailed D t il d feasibility f ibilit study t d completed l t d in i 2002. 2002 AusIndustry Commercial Ready Grant of A$3.29M in April 2006
Slide 11: DZP Flow Sheet
For personal use only DZP Flow Sheet
Slide 12: DZP Demonstration Pilot Plant
DZP Demonstration Pilot Plant For personal use only
Slide 13: Zirconium Applications
Zirconium Applications For personal use only
Slide 14: Zirconium Chemicals Industry
Zirconium Chemicals Industry For personal use only ZIRCON / BADDELEYITE ELECTRIC ARC FURNACE 2008 ~ 160,000t zircon converted to 96,000t of CHEMICAL PROCESSING zirconia (equivalent) products and 10,000t Zr metal FUSED “INTERMEDIATES” ZBS ZOC ZIRCONIA ZOC = zirconium oxychloride ZBS = zirconium basic
Slide 15: Zirconium Chemicals
Zirconium Chemicals For personal use only Current Zirconia Zirconia, Zirconium Chemical Uses 2015 Estimated 150,000 tonnes with industry growth rate of 4.5%pa High growth areas: Advanced ceramics and catalysts 1313.0%pa 0%pa Ceramic pigments 8.0%pa Zirconium metal for nuclear applications ? P d t ra
Slide 16: Zircon Usage
Zircon Usage For personal use only Zircon provides the feedstock for the zirconium industry 2012 Global consumption p estimate 1,400,000tpa 18% = 250,000t zircon for zirconia and zirconium chemicals Source: TZMI
Slide 17: Zircon Supply Demand Price
Zircon Supply Demand Price For personal use only 20% shortfall by 2020 Zircon prices have escalated by 30% during 2010 to US$1,100/t Zircon p price and supply pp y will have a major j impact p on the cost and availability y of zirconium chemicals, zirconia and zirconium metal Source: TZMI
Slide 18: Niobium Applications
For personal use only Niobium Applications
Slide 19: Structure of Niobium Industry
Structure of Niobium Industry For personal use only Metallurgical Structural steels Stainless and heat resistant steels Pyrochlore FeNb Superalloys Super conducting g magnets Columbite Nb 2 O 5 Tantalite Oxides Class Ceramics AZL Nb Concentrate Nb Raw Materials Intermediate Products Applications DZP
Slide 20: Niobium Demand
Niobium Demand For personal use only Niobium 2008 (Ferroniobium units) consumption ~85,000t – 90% Brazil Estimate for 2012 ~100,000t Ferro-niobium price spiralled to US$60/kg in March 07 and is currently around US$35 - 40/kg Sources: IAMGOLD / TZMI
Slide 21: REE Applications
REE Applications For personal use only Source: Molycorp
Slide 22: Rare Earth Supply - Demand
Rare Earth Supply ‐ Demand For personal use only Source: IMCOA
Slide 23: Rare Earth Consumption
Rare Earth Consumption For personal use only Light g t Rare a e Earth at DZP Average as REOs US$10/kg Q1 2010 US$12/kg Q2 2010 US$16/kg July 2010 US$28/kg 9 August 2010 US$31/kg Q3 2010 Yttrium Ytt i Heavy H RE REs DZP Average as REOs US$33/kg Q1 2010 US$42/kg US$ / gQQ2 2010 0 0 US$55/kg July 2010
Slide 24: DZP Product Output
DZP Product Output For personal use only Base case model of 400,000 tonnes pa and expanded 1 million tonnes pa of ore processed Production Outputs Product 400,000tpa 1,000,000tpa ZBS, ZOH, ZBC, ZrO2 15,000tpa (6ktpa ZrO2) 37,000tpa (15ktpa ZrO2) Nb -Ta concentrate 2,000tpa (1.4ktpa Nb2O5) 5,000tpa (
Slide 25: DZP YREE Output
DZP YREE Output For personal use only Yttrium - Rare Earth Individual Production (assumed 70% recovery) Ore 400 000tpa (Base Case) 1,000,000tpa 400,000tpa 1 000 000tpa La2O3 504 1,260 CeO3 950 2,376 Pr6O11 104 262 Nd2O3 364 912 Sm2O3 56 142__ Total LREE 1,980tpa 4,950tpa Eu2O3 2 4 Gd2O3 56 138 Tb4O7
Slide 26: DZP Product Development
DZP Product Development For personal use only Product Precipitate Dried Further development ZBS 27% ZrO2 98.6% ZrO2 Impurity minimisation ZOH 35% ZrO2 99% ZrO2 Impurity minimisation ZBC 35% ZrO2 99% ZrO2 Impurity minimisation ZrO2 99.8% ZrO2 Particle sizing Nb concentrate 56% Nb2O5 70% Nb2O5 Ferro-n
Slide 27: Development pathway
Development pathway For personal use only ‐> 2009 2010 2011 2012 2013 DUBBO ZIRCONIA Resource definition 2001 ‐2002 9 PROJECT Flow sheet development 2002 9 Laboratory Zr – Nb 1999 ‐ 2002 9 Pilot plant Zr – Nb 2002 9 Mine Plan & Scheduling 2002 9 Plant Design & Engineering 2002 9 Laboratory Y & REE 2
Slide 28: DZP Site 3D Image
For personal use only DZP Site 3D Image
Slide 29: DZP Process Plant Layout
DZP Process Plant Layout For personal use only
Slide 30: DZP Strategic Significance
DZP Strategic Significance For personal use only Majority of “downstream” zirconium products are derived from zircon, whose output is governed by ilmenite/rutile from mineral sands mining operations. China dominates downstream zirconium business at ~90% but feed is zircon. Niobium production dominat
Slide 31: Conclusion
Conclusion For personal use only Dubbo Zirconia Project A strategic and alternate supply for the zirconium, niobium and rare earths industries www.alkane.com.au
Slide 32: 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