Alara Resources Limited · ASX:AUQ
Alara Resources — Investor Presentation (October 2011)
28 slides from Alara Resources's investor presentation, Oct 19, 2011
Slide 1: Market Announcement: Investor Update 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 Wednesday, 19 October 2011 For personal use only MARKET
Slide 2: Investor Update October 2011
Alara Resources Limited For personal use only Investor Update October 2011 ASX: AUQ www.alararesources.com www.alararesources.com
Slide 3: Introduction
Investor Update – October 2011 For personal use only 1. INTRODUCTION • The Company: Management, Structure and Share Price Performance 2 SAUDI ARABIA 2. • Khnaiguiyah: Targeting DFS completion Q1 2012 • Marjan: j New concessions nearby y Khnaiguiyah g y 3. OMAN • Daris and Awtad: Helicopter-borne p V
Slide 4: Company Profile
Company Profile For personal use only Directors Stock ASX Code AUQ • 40+ yyears mining g experience p • Hamersley Iron, Rio Tinto, Century Zinc Market Cap (14 October 2011) $ 62.1M Ian Williams AO & Pasminco Chairman • Awarded Order of Australia for services Issued Capital to Indigenous communities
Slide 5: Pipeline
Pipeline For personal use only Alara has a strong pipeline of base metal development projects Design / Exploration Feasibility Production Construction Historical non-JORC compliant estimated Saudi Arabia: Khnaiguiyah mineralisation as reported in ASX market Zinc, Copper (Alara 50%) announcement date
Slide 6: Saudi Arabia Operations
Saudi Arabia Operations For personal use only © Alara Resources Limited www.alararesources.com Investor Update – October 2011 Introduction 5
Slide 7: Saudi Arabia: The Khnaiguiyah Project
Saudi Arabia: The Khnaiguiyah Project For personal use only The Khnaiguiyah Project comprises a Mining Licence (granted), 2 Exploration Licences and 5 Exploration Licence Applications covering 380 sq. km Recent drilling validates historic results and shows potential for additional zinc and copper mi
Slide 8: Previous Studies
Previous Studies For personal use only Previous Khnaiguiyah studies have confirmed the potential for commercial development of the project • Historical non-JORC compliant estimate2 as reported in Alara ASX market announcement dated 5 October 20101) e PFS • The S ((1990’s) 990 s) indicates d cates tt
Slide 9: Previous Work and Studies
Previous Work and Studies For personal use only Alara’s Definitive Feasibility Study (DFS) scheduled for completion in Q1 2012 is building on a considerable amount of previous work • Exploration and Pre-feasibility Study conducted by BRGM and further studies conducted by Manajem (the Vendor) include
Slide 10: Access, Camp and Drilling Activities
Access, Camp and Drilling Activities For personal use only The Khnaiguiyah Zinc-Copper Project has excellent road power and camp infrastructure Two hours from Riyadh on the Riyadh Jeddah Highway Riyadh-Jeddah © Alara Resources Limited www.alararesources.com Investor Update – October 2011 Khnaiguiyah
Slide 11: Alara Board visits Khnaiguiyah
Alara Board visits Khnaiguiyah For personal use only Alara Board Core members at the examination at Khnaiguiyah Khnaiguiyah core yard Zone 3 drill site High grade zinc Drill Hole core and copper from Zone 3 intersections in showing Drill Hole chalcopyrite K3DD11_032 at veins Zone 3 © Alara Resources
Slide 12: Mineralisation
Mineralisation For personal use only Mineralisation in Zone 2 is flat lying and shallow Copper grade Zinc grade Mineralised body Hanging wall / footwall Section 9 Section 11 Section 15 © Alara Resources Limited www.alararesources.com Investor Update – October 2011 Khnaiguiyah 11
Slide 13: Mineralisation
Mineralisation For personal use only Recent drilling aimed at copper mineralisation and strike extensions A stacked 3D model of Mineralised Zone 2 shows the flat and shallow disposition of the mineralisation Zinc Copper © Alara Resources Limited www.alararesources.com Investor Update – October 2011
Slide 14: Mineralisation
Mineralisation For personal use only Mineralisation is thick, high grade, open and has good continuity Mineralised Zone 3 is thicker and close to the surface on the east limb but generally Copper rich and towards the west Copper C grade d Zinc grade Section 12 Section 8 Mineralised body Hanging wall
Slide 15: Mineralisation
Mineralisation For personal use only Structural continuity demonstrated A stacked 3D model of Mineralised Zone 3 shows structural continuity 2% Zinc © Alara Resources Limited www.alararesources.com Investor Update – October 2011 Khnaiguiyah 14
Slide 16: Progress: Highlights of recent drilling
Progress For personal use only Highlights of recent drilling Assay results from recently completed drill-holes in Zone 3 continue to correlate with historic holes, confirming fi i hi historically t i ll reported t d hi high h grade d zinc-copper i mineralisation: i li ti K3DD11_022 • 7m @ 5.45% Zn a
Slide 17: DFS Completion
DFS Completion For personal use only Alara is targeting completion of Khnaiguiyah DFS in Q1 2012 2010 2011 2012 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Finalise formal JV agreements Establish office in Riyadh Obtain Obt i Mi Mining i LiLicence Obtain
Slide 18: DFS Progress: Metallurgical Test Work
DFS Progress For personal use only Highlights of Metallurgical Test Work • Initial locked cycle y flotation test work results from the metallurgical g test-work p program, g , on Zone 2 master composite, based on a relatively coarse primary grind product size of P80 < 106μm, delivered recoveries of
Slide 19: DFS Progress
DFS Progress For personal use only Resource Modelling and Mining Studies • QA / QC of historic data has taken longer g than envisaged g but to date the results are encouraging g g and BRGM data is well documented. Distribution of Ma'aden data matches very well with the 2011 data from recent drilling
Slide 20: Preliminary Plant Flow Sheet
Preliminary Plant Flow Sheet For personal use only © Alara Resources Limited www.alararesources.com Investor Update – October 2011 Khnaiguiyah 19
Slide 21: Oman: Daris Project
Oman: Daris Project For personal use only The Daris Project is located in a region with several examples of VMS Copper Deposits in the Oman Ophiolites and a nearby Copper Smelter © Alara Resources Limited www.alararesources.com Investor Update – October 2011 Daris 20
Slide 22: Targets
Targets For personal use only Alara is targeting discovery and development of Copper-Gold in Oman • Alara earlier completed a 25 drill hole programme in 2 of 12 known prospects in the project area area. Results received from one of these prospects, where 3 core holes were drilled to test previously
Slide 23: Daris East: Recent Drilling
Daris East: Block 7 For personal use only Recent Drilling © Alara Resources Limited www.alararesources.com Investor Update – October 2011 Daris 22
Slide 24: Mineralisation
Mineralisation For personal use only A helicopter-borne VTEM survey has been completed over Daris and the adjoining Awtad areas. New targets have been identified • Drilling has been completed. • VTEM survey and reconnaissance has confirmed 26 new co ducto s conductors. • Drilling has been completed
Slide 25: Targets
Targets For personal use only In Chile, Alara is targeting Copper-Gold prospects in an area with extensive previous workings and walk up drill targets • Definitive agreements with local partner due to be finalised by the end of October. • Five Copper, Copper-Gold and Copper Molybdenum IOCG type and
Slide 26: Prospects
Prospects For personal use only In the “El Quillay” Prospect, numerous workings exist over 1km strike and up to 85m depth. Outcrops and workings have been extensively sampled Recent decline Main workings Shaft and dump This hill is largely covered by oxide cap A half spiral decline dug in 2008 is wi
Slide 27: Prospects
Prospects For personal use only At “Lana and Corina” Prospect, significant drill intersections confirm the prospectivity of breccia pipes, with porphyry below Lana-Corina Lana-Corina Project Area Project Area Cross Geology Plan Two drill holes intersected 180m and 130m of mineralisation respectively
Slide 28: Alara Resources Limited
Alara Resources Limited For personal use only 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 iinfo@alararesources.com f @ l www.alararesources.com DISCLAIMER This presentation c
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