Alkane Resources Ltd · ASX:ALK
Alkane Resources — Shareholder Meeting (November 2016)
26 slides from Alkane Resources's shareholder meeting presentation, Nov 16, 2016
Slide 1: Annual General Meeting
For personal use only Annual General Meeting Sydney 16 November 2016 Shareholder Presentations Melbourne 17 November and Perth 18 November
Slide 2: Board & Management
Board & Management For personal use only Board John S F Dunlop (Chairman) BE(Min), MEngSc(Min). Mining Engineer D Ian Chalmers (Managing Director) MSc. Geologist Ian J Gandel (Director) LLB, BEc. Businessman Anthony D Lethlean (Director) BAppSc. Geologist/Banker Karen Brown (Company Secret
Slide 3: FY2016 Snapshot
FY2016 Snapshot For personal use only Hedge Funds FY2016 Financials 2.3% Domestic Foreign • Total income A$109.6 million Institutions Institutions 13.4% 4.7% • Profit before income tax A$6.7 million • Total equity A$190.3 million Directors and Retail and others • Market cap at 15 November ~A$300 mil
Slide 4: Tomingley Gold Operations FY16
Tomingley Gold Operations FY16 For personal use only • Resource – 579,000oz of gold (22 Sept 2016) • Reserve – 253,000oz (22 Sept 2016) • Mine Method – open cut W1, W3 & Caloma • Underground feasibility in progress • Mine Life – 4.5 years without addition • Processing plant throughput – 1.0Mtpa • 2.
Slide 5: TGO Resource Reserve Expansion
TGO Resource Reserve Expansion For personal use only Underground Targeting Existing reserve below the pit in Wyoming One 3km strike length of target zone Historic production at Myalls United ~70,000oz 1897-1908 © 2016 Alkane Resources Ltd 5
Slide 6: Peak Hill Resource Potential
Peak Hill Resource Potential Historic production 1904-1917 ~70,000oz For personal use only Alkane production 1996-2005 ~152,000oz Substantial high grade gold and copper intercepts Moderately refractory sulphide mineralization have to be pretreated before processing at TGO © 2016 Alkane Resources Ltd
Slide 7: TGP Resource Expansion
TGP Resource Expansion For personal use only Additional Resource Potential 60km long target zone Myalls underground (historic 70k gold production) MCD 003 34 metres grading 0.51g/t gold from 294 metres including 4 metres grading 2.98g/t gold from 294 metres MCD 005 17 metres grading 0.75g/t gold fro
Slide 8: Dubbo Zirconia Project
Dubbo Zirconia Project For personal use only Located 400km northwest of Sydney within a region that has substantial infrastructure – roads, rail, power, gas, light engineering, people (~100,000), being a large agricultural and mining area A very large polymetallic resource of the metals zirconium ha
Slide 9: DZP Key Milestones
DZP Key Milestones For personal use only State Approval 28 May 2015 Federal Department of Environment Approval 25 August 2015 Front End Engineering Design (FEED) completed 27 August 2015 Revamped flowsheet, with specific rare earth separation on site, improved waste management and reduced water cons
Slide 10: Process Flowsheet
Process Flowsheet For personal use only The process is a whole of ore sulphuric acid leach, followed by solvent extraction separation and chemical refining to produce products. It is a combination of several well known individual process components. © 2016 Alkane Resources Ltd 10
Slide 11: Product Output
Product Output For personal use only 6,667 tpa Rare earth chemical concentrate 95% REO DZP Process Plant (REO units) 16,374 tpa Zirconia and zirconium chemicals 99% ZrO2 (ZrO2 units) 50 tpa Hafnium as HfO2 concentrate HfO2 conc * (Hf units) 1,967 tpa Niobium as ferro-niobium 65% Nb (Nb units) * Star
Slide 12: Rare Earth Output
Rare Earth Output For personal use only DZP REE SX Toll treatment – off site Rare Earth Concentrates La2O3 1,441tpa La / Ce CeO2 2,367tpa Pr6O11 237tpa Pr / Nd Nd2O3 921tpa Sm2O3 112tpa Sm / Eu / Gd Eu2O3 3tpa Gd2O3 107tpa Tb / Dy / Ho / Er / Tb4O7 14tpa Tm / Yb / Lu Dy2O3 122tpa Y (2/3N) Ho2O3 22tp
Slide 13: DZP Marketing and Off-take
DZP Marketing and Off-take For personal use only Minchem – World wide zirconium product & marketing/sales agreement. Treibacher Industrie AG - JV to produce & market ferro-niobium Vietnam Rare Earth (VRE) – LOI for the production and marketing of separated rare earth products, and down stream value
Slide 14: Vietnam Rare Earth JSC LOI
Vietnam Rare Earth JSC LOI For personal use only Rare Earth Separation Plant Phu Ly – 4,000tpa REO separation plant producing La, Ce, Nd, Pr, Dy and Tb Selling certified products into Asia Hai Phong – 1,200tpa RE metal /alloy plant Selling certified RE metals into Asian permanent magnet manufact
Slide 15: Key Applications
Key Applications For personal use only ZIRCONIUM: Auto catalysts for emissions minimization; thermal barrier coatings for turbines (jet and industrial); ceramics; special alloys/glass; paint drying; paper coating; jewelry HAFNIUM: Turbine super alloys (jet and industrial); special ceramics; k-ga
Slide 16: Some Innovations
Some Innovations For personal use only An isotope of the rare earth, lutetium, can be inserted into the cancer to radiate from within to eliminate the tumor. A lithium-lanthanum-zirconia battery has been developed to eliminate fire issues with lithium-ion batteries Very thin hafnium oxide film
Slide 17: DZP Base Case Financial Summary
DZP Base Case Financial Summary For personal use only Front End Engineering Design (FEED) completed August 2015 on 1Mtpa ore processed Capex US$0.93B / US$80M contingency Revenue US$430 - $470Mpa DZP REVENUE SPLIT Opex US$220 - 230Mpa Pr-Nd, Nb, 14.4% EBITDA US$235 - $275Mpa 19.8% 20 year NPV US$1.1
Slide 18: Modularised Development Concept
Modularised Development Concept For personal use only Review of engineering and capital cost following the FEED study, modularised Progressive development and construction concept is being investigated build concept Key outcomes to date have shown that the 1Mtpa plant can be divided into four 0.25Mt
Slide 19: Modularised Development Concept
Modularised Development Concept For personal use only Construction 2017 - 2019 Estimated cost US$480M --------------------- Construction 2022 - 2023 Estimated cost US$360M --------------------- Estimated cost US$840M © 2016 Alkane Resources Ltd 19
Slide 20: The DZP Advantage
The DZP Advantage For personal use only Internationally strategic – supply of critical metals from non-Chinese sources Robust revenues forecast - even at current Chinese domestic RE and Zr prices Supply of all rare earth magnet materials – neodymium, praseodymium, dysprosium and terbium produced, “h
Slide 21: Toongi Pastoral Company
Toongi Pastoral Company For personal use only TPC established to manage farming properties and non mine operations environment • Operations ~ 500 hectares • Biodiversity offset ~1,000 hectares • Commercial farming ~2,000 hectare Commercial Farming • Mixed cattle and sheep grazing • Initial stocking
Slide 22: The Future
The Future For personal use only Build on the gold production and cash flow from TGO by extending known reserves and regional exploration and resource potential Advance the modular/staged development of the DZP though off-take, technology partnerships and financing Progress DZP to production and cas
Slide 23: Disclaimer
Disclaimer For personal use only 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 potential growth of Alkane Resources Ltd, industry growth or other tre
Slide 24: DZP Resources and Reserves
DZP Resources and Reserves For personal use only Dubbo Zirconia Project – Mineral Resources Toongi Tonnage ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 REO Deposit (Mt) (%) (%) (%) (%) (%) (%) Measured 35.70 1.96 0.04 0.46 0.03 0.14 0.75 Inferred 37.50 1.96 0.04 0.46 0.03 0.14 0.75 Total 73.20 1.96 0.04 0.46 0.03 0.1
Slide 25: Resource & Reserves: Tomingley
Resource & Reserves: Tomingley For personal use only TOMINGLEY GOLD PROJECT MINERAL RESOURCES (as at 30 June 2016) MEASURED INDICATED INFERRED TOTAL Total Gold DEPOSIT Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade (Kt) (g/t Au) (Kt) (g/t Au) (Kt) (g/t Au) (Kt) (g/t Au) (Koz) Open Pittable
Slide 26: TGO "Rain events"
TGO “Rain events” For personal use only © 2016 Alkane Resources Ltd 26
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