Alara Resources Limited · ASX:AUQ
Alara Resources — Investor Presentation (January 2012)
30 slides from Alara Resources's investor presentation, Jan 16, 2012
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 Monday, 16 January 2012 For personal use only MARKET ANN
Slide 2: Alara Resources Limited Investor Update Presentation
Alara Resources Limited For personal use only Investor Update Presentation January 2012 ASX: AUQ www.alararesources.com www.alararesources.com
Slide 3: Company Profile
Company Profile For personal use only Directors Stock ASX Code AUQ • 40+ years mining experience Market Cap (11 January 2012) $ 58.9M Ian Williams AO • Hamersley Iron, Rio Tinto, Century Zinc & Pasminco Chairman • Awarded Order of Australia for services to Indigenous Issued Capital communities - Sha
Slide 4: 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 Eduardo Valenzuela • 30+ years experience in mine operations, project management, technical services with BHP and General Manager, Projec
Slide 5: Relationships - Contractors
Relationships - Contractors For personal use only • Geology Models and JORC Resources • DFS Lead Engineers • Mining Study and Ore Reserves • Process Design • Geochemical Study and Waste Rock • Process Plant Classification • Materials Handling • Study on Co-Disposal of Filtered Tails and Waste Rock •
Slide 6: Pipeline
Pipeline For personal use only Alara has a strong pipeline of base metal development projects Design / Exploration Feasibility Production Construction Saudi Arabia: Khnaiguiyah Zinc, Copper (Alara 50%) Historical non-JORC compliant estimated mineralisation as reported in ASX market • Feasibility stu
Slide 7: Saudi Arabia – Khnaiguiyah Project
Saudi Arabia – Khnaiguiyah Project For personal use only © Alara Resources Limited www.alararesources.com Investor Update – January 2012 Khnaiguiyah 6
Slide 8: Joint Venture Partner - Manajem
Joint Venture Partner - Manajem For personal use only Directors 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 successful • Metals
Slide 9: 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 K2DD11_115 K2DD11_116 K2DD11_122 Zone 2 K2DD11_124 K2DD11_125 K2DD11_126 Zone 1 K2DD11_127 K2DD1
Slide 10: 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) • The PFS (1990’s) indicates the project was commer
Slide 11: Previous Work and Studies
Previous Work and Studies For personal use only Alara’s Definitive Feasibility Study (DFS) scheduled for completion in Q2 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 12: 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 © Alara Resources Limited www.alararesources.com Investor Update – January 2012 Khnaiguiyah 11
Slide 13: 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 14: Mineralisation
Mineralisation For personal use only Mineralisation in Zone 2 is flat lying and shallow, deepening to the east Copper grade Zinc grade Mineralised zone Hanging wall / footwall Section 9 Section 11 Section 15 © Alara Resources Limited www.alararesources.com Investor Update – January 2012 Khnaiguiyah
Slide 15: 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 – January 2012
Slide 16: 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 Section 12 Section 8 Copper grade Zinc grade Mineralised zone Hanging wall / f
Slide 17: 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 – January 2012 Khnaiguiyah 16
Slide 18: Progress: Highlights of recent drilling
Progress For personal use only Highlights of recent drilling Alara has completed 28,500m in 220 drill holes since February 2011. Assay results from recently completed drill-holes in Zones 2 and 3 continue to correlate with historic holes, and adding new mineralisation – still open. Drill Hole From (
Slide 19: DFS Completion
DFS Completion For personal use only Alara is targeting completion of Khnaiguiyah DFS in Q2 2012 2010 2011 2012 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Finalise formal JV agreements Establish office in Riyadh Obtain Mining Licence Obtain Envi
Slide 20: DFS Progress
DFS Progress For personal use only Highlights of Metallurgical Test Work • Initial locked cycle flotation test work results from the metallurgical test-work program, on Zone 2 master composite, based on a relatively coarse primary grind product size of P80 < 106μm, delivered recoveries of 87% for Cu
Slide 21: DFS Progress
DFS Progress For personal use only Resource Modelling and Mining Studies • QA / QC of historic data has taken longer than envisaged but to date the results are encouraging and BRGM data is well documented. Distribution of Ma'aden data matches very well with the 2011 data from recent drilling. • Inte
Slide 22: Preliminary Plant Flow Sheet
Preliminary Plant Flow Sheet For personal use only © Alara Resources Limited www.alararesources.com Investor Update – January 2012 Khnaiguiyah 21
Slide 23: Oman: Copper Gold Projects
Oman: Copper Gold Projects 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 Investor Update – January 2012 Oman 22
Slide 24: Targets
Targets For personal use only Alara is targeting discovery and development of Copper-Gold in Oman Alara has completed +5,000m of drilling in the project areas. Target mineralisation based on previous drilling and geophysics (the latter recently undertaken by Alara) of 3.2 million tonnes at 1.0% to 1
Slide 25: Daris East: Block Recent Drilling
Daris East: Block 7 For personal use only Recent Drilling © Alara Resources Limited www.alararesources.com Investor Update – January 2012 Daris 24
Slide 26: 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 • VTEM survey and reconnaissance has confirmed 26 new conductors. • IP survey on some of the remaining conductors has been completed. • RA
Slide 27: 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 • Five Copper, Copper-Gold and Copper Molybdenum IOCG type and porphyry prospects. • Deep workings along a 6km strike are located along a major fault
Slide 28: 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 29: 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 30: 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 info@alararesources.com www.alararesources.com DISCLAIMER This presentation contains
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