Alkane Resources Ltd · ASX:ALK
Alkane Resources — Alkane Exploration — Feeding the Dragon conference 2005
31 slides from Alkane Resources's conference presentation, Jul 28, 2005
Slide 1: ASX cover letter for presentation
ALKANE EXPLORATION LTD A.B.N 35 000 689 216 28 July 2005 Manager Announcements Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION Attached is a copy of a presentation to “Feeding the Dragon” conference in Sydney today. A copy of thi
Slide 2: Feeding the Dragon
LKANE EXPLORATION LTD ABN 35 000 689 216 “Feeding the Dragon” Sydney 28 July 2005
Slide 3: Alkane – who, what, where
“Alkane – who, what, where” Alkane is listed on the Australian Stock Exchange (ASX) - ALK A diverse exploration and mining company focussed in the Central West Region of New South Wales, Australia Produced 153,000 ounces of gold from its Peak Hill mine New discovery nearby at Wyoming of 600,000 ounc
Slide 4: Australia – project locations
Australia – project locations Nullagine Iron Central West NSW Leinster Nickel Gold – copper Zr-Nb-Ta-Y-REE Perth Sydney 500 km Project LKANE
Slide 5: Peak Hill Gold Mine
PEAK HILL GOLD MINE Conventional Open Cut Mining Agglomeration Heap Leach recovery of gold Production Commenced 1996 at Capital Cost $5 million 1996-2005 Output 153,000 ounces Cash Operating Surplus $15 million 100,000-500,000 ounces in sulphide deposit from 100m to 300m moderately refractory ore –
Slide 6: Tomingley Gold Project
TOMINGLEY GOLD PROJECT Wyoming One and Three Deposits 14km north of Peak Hill, discovered in 2001, drilled during 2002-2004 Total resources currently stand at 600,000 ounces of gold Further recent drilling continues to generate very positive results Feasibility study in progress for open pit/undergr
Slide 7: Western Australian Projects
Western Australian Nullagine Projects Nullagine and Leinster Leinster Ni JV LKANE
Slide 8: Nullagine Project
Nullagine Project Nullagine LKANE
Slide 9: Nullagine Project
Nullagine Project JV Alkane 60% Randolph Resources Syndicate 40% Alluvial diamonds discovered in 1895 at base of Tertiary aged palaeochannel near Nullagine Major exploration program for primary kimberlitic diamond sources 1992 to 1997 in area south west of Nullagine Work included detailed geological
Slide 10: Nullagine Project – satellite image
Nullagine Project – satellite image Nullagine Bonnie Creek Palaeochannel LKANE
Slide 11: Nullagine Project – Bonnie Creek System
Nullagine Project Bonnie Creek System Channel Iron Deposits NULLAGINE LKANE
Slide 12: Bonnie Creek Palaeochannel
Nullagine Project – Bonnie Creek Palaeochannel Mesa deposits LKANE
Slide 13: Bonnie Creek Iron Deposit
Nullagine Project – Bonnie Creek Iron Deposit Residual mesa deposit LKANE
Slide 14: Nullagine Project – Bonnie Creek Mesa CID
Nullagine Project Bonnie Creek Mesa CID LKANE
Slide 15: Robe River type CID deposits
Nullagine Project – Robe River type CID deposits Typical residual mesa deposit LKANE From Robe River Iron Associates web site www.roberiver.com
Slide 16: Bonnie Well Drill Traverse
Nullagine Project Tertiary Palaeochannel - Bonnie Well Drill Traverse LKANE
Slide 17: Goongan Well Drill Traverse
Nullagine Project Tertiary Palaeochannel - Goongan Well Drill Traverse LKANE
Slide 18: Nullagine Project – Channel Iron Deposits
Nullagine Project Channel Iron Deposits Bonnie Creek System Potential 150 - 220M tonnes CID pisolite accumulation 58.48 57.28 58.57 Surface sampling 55.56 58.27 Fe Si02 Al2O3 P LOI Fe (C) 58 3.23 3.95 0.03 9.07 63 59.83 Robe River CID Ore 57.87 Fe Si02 Al2O3 P LOI Fe (C) 57 5.50 2.50 0.04 9.20 63 58
Slide 19: Nullagine Project – Location and Rail Corridors
Nullagine Project Location and Rail Corridors Nullagine LKANE From Fortescue Metals Group web site www.fmgl.com.au
Slide 20: Nullagine Project – Current Strategy
Nullagine Project Current Strategy JV Alkane 60% Randolph Resources Syndicate 40% East Pilbara Aboriginal Heritage agreement signed Exploration Licence titles to be approved late ? October ? Discussions with potential joint venture partners initiated Preferred option is outright sale linked to resou
Slide 21: Central West NSW Dubbo Zirconia Project
Central West NSW Dubbo Zirconia Project LKANE
Slide 22: Dubbo Zirconia Project Summary
DUBBO ZIRCONIA PROJECT SUMMARY • One of the worlds largest zirconium, yttrium and tantalum resources (+ 100 million tonnes) - also contains significant niobium and rare earth elements • Project based upon large Jurassic aged alkaline volcanic complex with highly metal enriched vertical trachyte intr
Slide 23: Project Site and Infrastructure Location
DUBBO ZIRCONIA PROJECT Project Site and Infrastructure Location
Slide 24: Dubbo Zirconia Project Resources
DUBBO ZIRCONIA PROJECT RESOURCES Measured Resource : 35.7 million tonnes grading 0 - 55 metres 1.96% Zr02, 0.04%HfO2, 0.14% Y2O3 0.46% Nb2O5, 0.03% Ta2O5 and 0.75% REO Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres TOTAL : 73.2 million tonnes LKANE
Slide 25: Process Flow Sheet
DUBBO ZIRCONIA PROJECT PROCESS FLOW SHEET LKANE LKANE
Slide 26: Indicative Development
DUBBO ZIRCONIA PROJECT INDICATIVE DEVELOPMENT Conceptual Project at start up 200,000tpa ore processed Zirconium products 3000 tpa zirconia (ZrO2 + HfO2) equivalent ZBS Zirconium basic sulphate ZOH Zirconium hydroxide ZCO Zirconium carbonate ZrO2 Zirconia (calcined) Niobium - tantalum 600 tpa niobium
Slide 27: Structure of the Zirconia Industry
DUBBO ZIRCONIA PROJECT Structure of the Zirconia Industry RAW MATERIALS PROCESSED PRODUCTS END USES BADDELYITE ZIRCONIA PRODUCTS (Generally increasing purity) 5,000 tonnes FUSED Refractories ZIRCONIA Ceramic Pigments CHEMICAL Glass/Gemstones PURIFICATION Catalysts ZIRCON Oxygen Sensors SOFC 100,000
Slide 28: Niobium - Tantalum Market
DUBBO ZIRCONIA PROJECT Niobium - Tantalum Market Niobium 1991 - 19,000t 2003 - 32,600t 90% Brazil Uses: 90% HSLA Steels Other: Superalloys - aerospace and gas turbines Optical glass, ceramic capacitors, superconductors (MRI etc) Tantalum 1991 - 625t 2003 - 1,500t 50% W.A. Uses: 60% Electronics -- ce
Slide 29: Why the DZP and China?
DUBBO ZIRCONIA PROJECT Why the DZP and China? Current world zircon production (2004) = 1.165Mtpa, about 10 - 15% converted to higher value zirconia and zirconium chemicals. China imports (2004) = 0.28Mtpa of which about 70-75,000tpa processed for downstream zirconium products for production industri
Slide 30: Dubbo Zirconia Project – Current Strategy
DUBBO ZIRCONIA PROJECT Current Strategy Alkane in discussions to float 50% of AZL (the holding subsidiary) or enter into new JV with existing producer/end user Raise/inject sufficient capital to complete process optimisations, and construct and operate the Demonstration Pilot Plant Revise and update
Slide 31: Thank You
ALKANE EXPLORATION LTD A multi commodity explorer and miner www.alkane.com.au Thank You 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 pot
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