Alara Resources Limited · ASX:AUQ

Alara Resources — Investor Presentation (October 2012)

34 slides from Alara Resources's investor presentation, Oct 15, 2012

  1. 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 For personal use only 15 October 2012

  2. Slide 2: Investor Update Presentation October 2012

    Alara Resources Limited For personal use only Investor Update Presentation October 2012 ASX: AUQ www.alararesources.com www.alararesources.com

  3. Slide 3: Project Locations

    Project Locations For personal use only Khnaiguiyah (50%) Washihi (75% EARN IN) Daris (50%) Zinc-Copper, Saudi Arabia Copper-Gold, Oman Copper-Gold, Oman Khnaiguiyah & Washihi, Daris & Marjan Projects Awtad Projects (Saudi Arabia) (Oman) El Quillay Project (Chile) Perth Alara Resources Limited (ASX:

  4. Slide 4: Alara offers attractive base metal exposure

    Alara offers attractive base metal exposure For personal use only Khnaiguiyah Zinc Copper Project (50%) • Draft DFS report received. Review is in progress • DFS completion expected in Q4 2012 • 80,000tpa zinc production targeted to commence into forecast strongly rising zinc prices • Saudi Arabia of

  5. Slide 5: Company Profile

    Company Profile For personal use only Directors Stock ASX Code AUQ Market Cap (3 October 2012) $61M • 40+ years mining experience Ian Williams AO • Hamersley Iron, Rio Tinto, Century Zinc & Pasminco Issued Capital Chairman • Awarded Order of Australia for services to Indigenous - Shares 210.5M commu

  6. Slide 6: Management Team

    Management Team For personal use only Management Team Shanker Madan • 35+ years mining industry experience with BHP, Rio Tinto & Hamersley Iron. Managing Director • 35+ years in mining, metals and heavy industrial engineering project management and EPCM. Maxwell Hobson Previous experience with FMG,

  7. Slide 7: Saudi Arabia – Khnaiguiyah Project (50%)

    Saudi Arabia – Khnaiguiyah Project (50%) For personal use only © Alara Resources Limited www.alararesources.com 6

  8. Slide 8: Joint Venture Partner – Manajem (50%)

    Joint Venture Partner – Manajem (50%) For personal use only Management Team Company Profile United Arabian Mining Company (Manajem) Founder and Owner of: was established in June 2004 and is Engr. Mohamad Abdalah Al Hatlani • Delta Consulting Group Founder/Board Member comprised of a group of success

  9. Slide 9: Timetable

    Timetable For personal use only 2011 2012 2013 2014 May May May Aug Aug Aug Nov Nov Nov Nov Sep Sep Sep Dec Dec Dec Dec Mar Mar Mar Mar Feb Jun Feb Jun Feb Jun Feb Apr Apr Apr Apr Jan Jan Jan Jan Oct Oct Oct Oct Jul Jul Jul  Finalise formal JV agreements   Mining Licence granted to project*   E

  10. Slide 10: DFS Status

    DFS Status For personal use only • Draft DFS report received. Review is in progress • DFS comprises 17 volumes and approximately 3,000 line items of bill of quantities • Initial review indicates that: • Plant, equipment and mine designs are fundamentally sound • Mine scheduling required further opti

  11. Slide 11: Attributes – Country & Historical Work

    Attributes – Country & Historical Work For personal use only Country • Tax – 20% Corporate (nil personal tax rate) Two hours from Riyadh on the Riyadh-Jeddah • Royalties – nil Highway • SIDF – 75% debt available at sub-LIBOR rates with long 10 year tenure (Saudi Industrial Development Fund) • Owners

  12. Slide 12: Updated JORC Resource

    Updated JORC Resource For personal use only Results from further drilling have led to a ~30% upgrade3 in the JORC Measured and Indicated Zinc and Copper Resource at the Khnaiguiyah Project from the maiden JORC Resource4 • Resource Statement3 – focused on lifting the category on Zones 2 & 3 (so as to

  13. Slide 13: Zinc Prices Forecast

    Zinc Prices Forecast For personal use only Targeting commencement of Zinc Production from Khnaiguiyah into a strongly rising market © Alara Resources Limited www.alararesources.com 12

  14. Slide 14: Achievements

    Achievements For personal use only Rapid progress in <1.5 years!  Projects secured – October 2010 (post successful Manajem negotiations)  Mining licence – granted December 2010  Environmental licence – granted June 2012  JORC Resource – announced February 2012  Team – established in Saudi Arabi

  15. Slide 15: Resource – Outlook

    Resource – Outlook For personal use only Further upgrades ahead • Drilling cut-off (for resource) – September 2011 Zone 1 • Data cut-off (for resource) – Zone 2 November 2011 • Metres drilled since cut-off dates – +12,000m in Zones 1&2 • Zone 1 – Mineralisation drilled on 50x50m grid. Shallow with l

  16. Slide 16: Zones – Upgrades Ahead

    Zones 1 & 2 – Upgrades Ahead For personal use only Zone 1 Zone 2 already extended 400m NE Resource Open Drilling Highlights: Drilling Highlights: Hole K1DD12_221 from 24–30.8m: 6.8m at 6.02% Zn; 0.49% Cu Hole K2DD12_233 from 80.8–86m: 5.2m at 7.15% Zn; 0.14% Cu Hole K1DD12_222 from 63–66m: 3m at 7.5

  17. Slide 17: Zones – Upgrades Ahead

    Zones 3 & 4 – Upgrades Ahead For personal use only Zone 3 open to the south Zone 4 remains undrilled by JV Co. Drilling Highlights: Hole K3DD11_037 from 78–82m: 4m at 11.02% Zn; 0.07% Cu Hole K3DD11_044 from 187–209.1m: 22.1m at 6.87% Zn; 0.14% Cu and 214–221m: 7m at 6.69% Zn; 0.65% Cu Hole K3DD11_0

  18. Slide 18: Mineralisation – Zone

    Mineralisation – Zone 2 For personal use only Mineralisation in Zone 2 is flat lying and shallow, deepening to the east S11 Drill hole intersections: Section 11 KZ2_311: 8m @ 4.6% Zn, 0.5% Cu KZ2_351: 8m @ 7.5% Zn, 0.3% Cu KZ2_312: 18m @ 7.2% Zn, 0.1% Cu KZ2_313: 17m @ 18% Zn, 0.3% Cu KZ2_314: 18m @

  19. Slide 19: Mineralisation – Zone

    Mineralisation – Zone 3 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 S7 Drill hole intersections: K97_136: 4m @ 3.58% Zn, 0.27% Cu Section

  20. Slide 20: Mineralisation – Zone (cont’d)

    Mineralisation – Zone 3 (cont’d) For personal use only S14 Drill hole intersections: Section 14 K97_263: 23m @ 4.4% Zn, 0.08% Cu KHNC_76: 8.31m @ 13.5% Zn, 0.37% Cu K97_151: 16.78m @ 6.18% Zn, 0.31% Cu KHNC_77: 61.7m @ 9.07% Zn, 1.22% Cu 2.6m @ 5.14% Zn, 0.05% Cu K97_130: 4m @ 3.67% Zn, 0.3% Cu K97_

  21. Slide 21: 3D Model – Zone

    3D Model – Zone 2 For personal use only Zone 2 – Flat & shallow. Zinc mineralisation overlays copper mineralisation © Alara Resources Limited www.alararesources.com 20

  22. Slide 22: 3D Model – Zone

    3D Model – Zone 3 For personal use only Structurally thick & continuous mineralisation (2% Zn cut-off envelope shown below) >2% Zinc © Alara Resources Limited www.alararesources.com 21

  23. Slide 23: Plant Flow Sheet

    Plant Flow Sheet For personal use only © Alara Resources Limited www.alararesources.com 22

  24. Slide 24: Oman – Copper Gold (+50-75%)

    Oman – Copper Gold (+50-75%) For personal use only The Oman Copper Gold Projects are located in a region with several examples of VMS Copper Deposits in the Ophiolites and close to a nearby Copper Smelter © Alara Resources Limited www.alararesources.com 23

  25. Slide 25: Oman (cont’d)

    Oman (cont’d) For personal use only Alara is targeting discovery and development of Copper-Gold in Oman • Drilling – +5,000m completed • Initial JORC Resource6 at Washihi Project: • 6.9Mt Inferred @ 0.76% Cu and 0.16g/t Au • 2.1Mt Indicated @ 0.70%Cu and 0.17g/t Au • Completed scoping study for a 50

  26. Slide 26: Oman – Washihi Drill Hole Plan

    Oman – Washihi Drill Hole Plan For personal use only Drill hole locations at the Washihi Copper Gold Prospect Result highlights from nine drilling holes totalling 1,615m include: • Hole WH12DD005 72m @ 1.3% Cu, 0.15g/t Au • Hole WH12DD007 18m @ 1.4% Cu, 0.21g/t Au © Alara Resources Limited www.alara

  27. Slide 27: Oman – Washihi Drill Hole Locations

    Oman – Washihi Drill Hole Locations For personal use only © Alara Resources Limited www.alararesources.com 26

  28. Slide 28: Oman – Washihi Cross Section (250N)

    Oman – Washihi Cross Section (250N) For personal use only © Alara Resources Limited www.alararesources.com 27

  29. Slide 29: Oman – Washihi Mineralisation Targets

    Oman – Washihi Mineralisation Targets For personal use only © Alara Resources Limited www.alararesources.com 28

  30. Slide 30: Chile – El Quillay Project (earning 70%)

    Chile – El Quillay Project (earning 70%) 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 • Ownership – earning 70% interest over three years • Targets – copper-gold with extensive pre

  31. Slide 31: Chile (cont’d)

    Chile (cont’d) For personal use only “Lana and Corina” – highlight prospectivity of breccia pipes, with porphyry below Two drill holes – intersected 130m & 180m @ 0.7% Copper & up to 200ppm Molybdenum Lana-Corina Lana-Corina Project Area Project Area Geology Plan Cross © Alara Resources Limited www.

  32. Slide 32: Summary

    Summary For personal use only Khnaiguiyah Zinc Copper Project (50%) • Khnaiguiyah Zinc-Copper DFS on track for completion in December 2012 quarter • Recent Resource expansion of 30% • Production from Khnaiguiyah expected to commence into a strengthening zinc market Oman (+50 – 75%) • Scoping Study f

  33. Slide 33: JORC Code Competent Person Statements

    JORC Code Competent Person Statements For personal use only The information in this presentation that relates to Mineral Resources within Mineralised Zones 2 and 3 of the Khnaiguiyah Project (as reported in the Alara Resources Limited ASX market announcement dated 21 February 2012 entitled “Maiden J

  34. Slide 34: Alara Resources Limited contact and disclaimer

    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 info@alararesources.com www.alararesources.com DISCLAIMER This presentation contains

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