Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Mining The Territory Conference & Exhibition 2010
27 slides from Arafura Rare Earths's conference presentation, Sep 23, 2010
Slide 1: The Nolans Project
For personal use only The Nolans Project Mining The Territory Conference & Exhibition Darwin 23 September 2010
Slide 2: Disclaimer
Disclaimer Important Notice For personal use only This presentation contains certain statements which may constitute “forward‐looking statements”. Such statements are only expectations or beliefs and are subject to inherent risks and uncertainties which could cause actual values, results or performa
Slide 3: Strategy & vision
Strategy & vision For personal use only Arafura Resources is an ASX‐listed emerging Rare Earths producer. Our annual strategic review of the business confirmed the following: y Our focus on Rare Earths; y The outlook for Rare Earths continues to improve; and y Nolans Bore is one of the few truly wor
Slide 4: Corporate structure
Corporate structure (ASX: ARU) For personal use only As at 22 September 2010 Capital 290m shares; 15m Board/Employee options Market capitalisation (ASX:ARU closing price @ 22 September 2010) @ A$0.98 = ~A$284 million Cash (@ 30 June 2010 ASX Quarterly report) A$23.5 million Top shareholders ANZ Nomi
Slide 5: Rare Earths: applications
Rare Earths: applications For personal use only
Slide 6: Rare Earths: outlook continues to improve
Rare Earths: outlook continues to improve For personal use only y Excellent growth prospects fuelled by consumer demand for new high technology products, and society and regulator drives for clean and efficient energy; y Very low future demand risks due to substitution or more efficient use/recyclin
Slide 7: Project value proposition
Nolans Project value proposition % REO Volume REO Price Projected Revenue For personal use only Rare Earth Element % Revenue contained (tonnes) (US$/kg) (US$ millions) p.a. Lanthanum 19.74% 3,948 $41.50 $164 16.4% Cerium 47.53% 9,506 $36.00 $342 34.2% Praseodymium * 5.82% 1,164 $68.50 $80 8.0% Neody
Slide 8: Arafura's exploration portfolio
Arafura’s exploration portfolio For personal use only Arafura’s exploration focus remains on Rare Earths in the Aileron‐ Reynolds region of the Northern Territory. We will add value to our non‐Rare Earth assets through joint ventures.
Slide 9: Nolans Project update
For personal use only Nolans Project update
Slide 10: Project scope
Nolans Project scope For personal use only The scope of the Nolans Project is confirmed as follows: y Mine and ore beneficiation at Nolans Bore, NT o Supplementary drill program to establish full extent of resource and expansion capability beyond first production phase of 20,000 t p.a. Rare Earth Ox
Slide 11: Project scope
Nolans Project scope For personal use only Phase 1 Annual Production REO Rare Earths Oxides 20,000 t P2O5 as 61% Phosphoric 80,000 t Acid U3O8 Uranium Oxide 150 t CaSO4 Gypsum 500,000 t
Slide 12: Bore is already a globally significant resource
Nolans Bore is already a globally significant resource For personal use only y Exposed at surface; y Size extent unknown; y Only drilled to 130 m below surface.
Slide 13: Project update: Mine
Nolans Project update: Mine For personal use only Mine site y Drilling for EIS hydrology studies completed; y Transport study completed; y Optimisation in progress with Whittle Consulting; y Final engineering feasibility in progress with Lycopodium. Technology y Final pilot, demonstration and optimi
Slide 14: Bore Mine: location
Nolans Bore Mine: location For personal use only y 5 km to gas pipeline; 10 km to Stuart Highway; 135 km to Alice Springs; y Mineral concentrate to be transported by road train 65 km along dedicated haul road to rail siding on Darwin‐Adelaide rail line.
Slide 15: Bore Mine: feasibility
Nolans Bore Mine: feasibility For personal use only y Open cut mining to a depth of 150 m on current resources; y 6 million t p.a. mined; y 1 million t p.a. upgraded to a mineral concentrate.
Slide 16: Bore Mine
Nolans Bore Mine For personal use only y Beneficiation circuit comprises crushing, screening, gravity separation, flotation; y 700,000 t p.a. of mineral concentrate; y 300,000 t p.a. of tailings. The Nolans Bore Mine and its supporting infrastructure will act as a catalyst for business opportunities
Slide 17: Project update: technology
Nolans Project update: technology For personal use only Mine site y Drilling in progress for EIS hydrology studies; y Optimisation in progress with Whittle Consulting; y Transport study completed; y Final engineering feasibility in progress with Lycopodium. Technology y Final pilot, demonstration an
Slide 18: Final technology programs underway
Final technology programs underway For personal use only Already proven / demonstrated Mining & Concentration Piloting & demonstration program Optimisation program Chemical Separation Acid recycle Rare Earth Phosphate Processing Processing Rare Earth Uranium Phosphoric Gypsum Oxides Oxide Acid De‐ri
Slide 19: Project update: Rare Earths Complex
Nolans Project update: Rare Earths Complex Rare Earths Complex For personal use only y Design studies ongoing; y Site selection work complete o Whyalla confirmed as location for Rare Earths Complex o Immediate site access for engineering and environmental studies o Working towards finalising land pu
Slide 20: Whyalla Rare Earths Complex: location
Whyalla Rare Earths Complex: location For personal use only y 800 ha of industrial land; y Adjacent to rail, road, port, salt producer; y 1,400 km rail distance from Nolans Bore; y 7 km from Whyalla CBD.
Slide 21: Whyalla Rare Earths Complex
Whyalla Rare Earths Complex For personal use only y Comprises facilities for production of feed chemicals, and final products; y Arafura will consider partners in, or third party owners of, major feed chemical plants. The Whyalla Rare Earths Complex will be a very substantial chemical processing ope
Slide 22: Project update: project finance
Nolans Project update: project finance Rare Earths Complex For personal use only y Design studies ongoing; y Site selection work complete o Whyalla confirmed as location for Rare Earths Complex o Immediate site access for engineering and environmental studies o Working towards finalising land purcha
Slide 23: Project: the next steps
Nolans Project: the next steps For personal use only 2010 ‐ 2013 y Refine technology and, where necessary, demonstrate at scale; y EIS, site studies, regulatory approvals – Nolans Bore & Whyalla; y Extensive drilling program to increase resource base and reduce resource risk; y Refine the debt/equit
Slide 24: Summary
For personal use only Summary
Slide 25: Summary
Summary For personal use only Rare Earths and the Nolans Project – excellent prospects for value generation for Arafura shareholders, and for the communities within which Arafura will operate: y Good market growth fundamentals with very small risks; y Market is supply side constrained. Nolans repres
Slide 26: For more information……
For more information…… For personal use only Nolans Project Fact Sheets at www.arafuraresources.com.au
Slide 27: Thank You
For personal use only Thank You
Arafura Resources — Mining The Territory Conference & Exhibition 2010 on 6ix