Slide 1: ASX cover letter: presentation to shareholders
ALKANE EXPLORATION LTD A.B.N 35 000 689 216 24 May 2006 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 shareholders immediately following the annual general meeting t
Slide 2: Annual General Meeting Operations Presentation
LKANE EXPLORATION LTD ABN 35 000 689 216 ANNUAL GENERAL MEETING Operations Presentation 24 May 2006
Slide 3: Highlights
HIGHLIGHTS Major joint venture with Newmont covering Orange Area Significant deep drill intercepts at Wyoming incl 66m @ 19.49g/t Au $3.28 million Commercial Ready grant from AusIndustry for Dubbo Zirconia Project Discussions to advance Galwadgere copper project Grant of Nullagine tenement
Slide 4: Australia – project locations
Australia – project locations Nullagine Iron Central West NSW Gold – copper Leinster Nickel JV Zr-Nb-Ta-Y-U-REE Perth Sydney 500 km Project LKANE
Slide 5: Central West NSW Projects
Central West NSW Goldcorp 2Moz Projects DUBBO TGPGold Copper - gold Rio Tinto 2Moz 1.5Mt Cu Newmont JV Gold - copper Newcrest Barrick 30Moz 2Mt Cu 4.5Moz LKANE
Slide 6: Tomingley Gold Project Regional Outcrop Geology
Tomingley Gold Project Regional Outcrop Geology Cover Wyoming Hervey Group Myalls United Dulladerry Rhyolite Yeoval Granite Forbes Group Mungincoble Chert Cotton Formation Goonumbla (Mingelo) Volcanics LKANE
Slide 7: Wyoming Geological Summary
Tomingley Gold Project Wyoming Geological Summary 58,700oz New Intersections 4m @ 2.29g/t Au 4m @ 1.70g/t Au Pelitic Sediments 4m @ 1.67g/t Au 547,700oz 4m @ 2.64g/t Au Feldspar porphyry Volcaniclastic sediments Graphitic mudstone Volcaniclastic conglomerate Epidote altered volcanics Chlorite-talc s
Slide 8: Tomingley Gold Project – South View
Tomingley Gold Project – South View Peak Hill Gold Mine Smiths McLeans Myalls United Mine Wyoming One Caloma Wyoming Three Newell Highway Tomingley LKANE
Slide 9: Wyoming One Geological Interpretation
Tomingley Gold Project Wyoming One Geological Interpretation Cotton Formation Feldspar porphyry Volcaniclastic sediments Graphitic mudstone Volcaniclastic conglomerate Epidote altered volcanics Chlorite-talc schist Andesitic volcanics LKANE
Slide 10: Wyoming One North–South Section
Tomingley Gold Project Wyoming One North – South Section 9m @ 12.5g/t Au 85m @ 2.15g/t Au 614075mE 6m @ 9.53g/t Au Alluvium Cotton Formation 12m @ 6.22g/t Au Feldspar porphyry Volcaniclastic sediments 18.4m @ 5.74g/t Au 12.5m @ 7.88g/t Au 7.2m @ 11.06g/t Au Graphitic mudstone Volcaniclastic conglome
Slide 11: Wyoming One East–West Section
Tomingley Gold Project 7m @ 3.52g/t Au Wyoming One 3m @ 3.85g/t Au 32m @ 1.75g/t Au East - West Section 23m @ 2.08g/t Au 6393300mN 13m @ 3.61g/t Au 6m @ 5.69g/t Au Alluvium 17m @ 4.72g/t Au Cotton Formation 9m @ 6.70g/t Au 7m @ 9.41g/t Au Feldspar porphyry 12m @ 2.59g/t Au 6m @ 4.65g/t Au Volcanicla
Slide 12: Tomingley Gold Project Resource Summary
TOMINGLEY GOLD PROJECT Resource Summary Wyoming One and Three Dec 2005 0.75g/t gold cut off Measured 4.835 mt @ 2.24g/t gold 348,350 oz 58% Indicated 1.025 mt @ 2.76g/t gold 91,000 oz 15% Inferred 1.270 mt @ 4.09g/t gold 167,000 oz 27% TOTAL 7.130 mt @ 2.70g/t gold 606,350 oz 100% LKANE
Slide 13: Wyoming Proposed Pit Locations
Tomingley Gold Project Wyoming Proposed Pit Locations Base Case May 2006 LKANE
Slide 14: Wyoming One 3D Model – East View
Wyoming One 3D Model with pit 400m and u/g developments East View LKANE
Slide 15: Wyoming One 3D Model – North View
Wyoming One 3D Model with pit 400m and u/g developments North View LKANE
Slide 16: Wyoming One 3D Model – West View
Wyoming One 3D Model with pit 400m and u/g developments West View LKANE
Slide 17: Wyoming Pre-feasibility Summary
TOMINGLEY GOLD PROJECT Wyoming Pre-feasibility Summary Pre-feas Study: Open pit 0.5Mt/y Base case 30,000ozpa Æ 35,000ozpa optimised A$850/oz A$25.5M Æ A$29.75M Cash flow A$8.22M Æ A$12.47M Period 4 years A$32.88M Æ A$49.88M Scoping Study: Underground 0.25Mt/y Base case 30,000ozpa Æ 35,000ozpa optimi
Slide 18: Wyoming Development Summary
TOMINGLEY GOLD PROJECT Wyoming Development Summary Pre-feasibility study has given enough encouragement to proceed to Definitive Feasibility Study Six month program to optimise open pits, generate detailed underground mine plan, optimise head grades and recoveries to complete DFS Complete Environmen
Slide 19: Tomingley Gold Project Regional Geological Interpretation
Wyoming Tomingley Two Tomingley Gold Project Resources 7.1Mt @2.7g/t 24m @ 1.29g/t Regional Geological Smiths Wyoming One Look-a-like Myalls United Interpretation 8m @ 0.49g/t Au Prod 70,000oz and Prospects Peak Hill Resources 11.27Mt @ 1.29g/t Black Snake 8m @ 1.6g/t Au Late Devonian sediments Earl
Slide 20: Dubbo Zirconia Project Site and Infrastructure Location
DUBBO ZIRCONIA PROJECT Project Site and Infrastructure Location
Slide 21: 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 , 0.014% U3O8, and 0.75% REO Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres TOTAL : 73.2 million tonnes Although the or
Slide 22: Dubbo Zirconia Project Process Flow Sheet
DUBBO ZIRCONIA PROJECT PROCESS FLOW SHEET LKANE LKANE
Slide 23: Zirconium Industry Structure and Market Entry Points
DUBBO ZIRCONIA PROJECT Zirconium Chemicals ZIRCON / BADDELEYITE ELECTRIC ARC FURNACE Industry Structure CHEMICAL PROCESSING and Market Entry Points AZL ZBS ZOC FUSED “INTERMEDIATES” ZIRCONIA UPGRADING/CONVERSION UPGRADING/CONVERSION AZL “END USE” Upgrading Zr Doped ZBC ZOH ZBS ZOC ZBC Acetate Zircon
Slide 24: Schematic Illustration of Niobium Industry Structure
DUBBO ZIRCONIA PROJECT Schematic Illustration Metallurgical of Niobium Industry Structural steels Stainless and heat Structure Pyrochlore FeNb resistant steels Superalloys Super conducting magnets Columbite Tantalite Nb 2O 5 Oxides Class Niobium Ceramics AZL Nb 35,000t – 90% Brazil Concentrate Nb Ra
Slide 25: Current Zircon Uses
DUBBO ZIRCONIA PROJECT Other Foundry 2% 14% Ceramics Zirconia & 50% Zr Chemicals 12% CURRENT TV Glass ZIRCON 8% Refractory USES 14% Source: Iluka Oct 05 LKANE
Slide 26: Zircon Supply / Demand Outlook
DUBBO ZIRCONIA PROJECT Zircon Supply / Demand Outlook Surplus / demand (’000s tonnes) Surplus / deficit (’000s tonnes) 1600 600 500 1400 400 1200 300 200 1000 100 800 0 -100 600 -200 400 -300 -400 200 -500 0 -600 2001 2011 2000 2002 2003 2007 2008 2009 2010 2012 2013 2004 2005 2006 2014 2015 Balance
Slide 27: Current Zirconia Uses
DUBBO ZIRCONIA PROJECT CURRENT ZIRCONIA USES 2005 Consumption 96,000 tonnes 2010 Estimated 126,000 tonnes with industry growth rate of 4.5%pa High growth areas: Advanced ceramics and catalysts 13.0%pa Ceramic pigments 8.0%pa LKANE Source: TZ Minerals International Dec 05
Slide 28: Dubbo Zirconia Project Current Program
DUBBO ZIRCONIA PROJECT Current Program AusIndustry Commercial Ready Grant of A$3.29M on dollar for dollar basis to complete process optimisations, and construct and operate the Demonstration Pilot Plant. Total of about 27 months Laboratory program scheduled to commence July 2006 with DPP to be const
Slide 29: Wellington Bodangora Regional Geology
Wellington Bodangora Comobella 18m 18m@ @0.95g/t 0.95g/tAu, Au,0.15%Cu 0.15%Cu Regional EL4022 450m 450mxx150m 150mAu Au++Cu Cu Geology Bodangora Bodangora 0.2Moz Great Australian Basin Permian sediments EL5493 Wellington Federal Carboniferous granite Devonian – Silurian sediments and volcanics Ordo
Slide 30: Galwadgere 350mRL Conceptual Pit
Galwadgere 350mRL Conceptual pit Permian sediments Devonian sediments Silurian volcanics LKANE
Slide 31: Galwadgere Long Section
Permian sediments Galwadgere Devonian sediments Long Section Silurian volcanics G040 G0400.25m 0.25m@@15.5g/t 15.5g/tAu Au3.0% 3.0%Cu Cu230g/t 230g/tAg Ag ~~44m @ 0.75% Cu (incl cum 20m @ 1.0% Cu) 44m @ 0.75% Cu (incl cum 20m @ 1.0% Cu) LKANE
Slide 32: Wellington Project Galwadgere Program
WELLINGTON PROJECT Galwadgere Program Resource: 2.09Mt @ 0.99% copper and 0.30 g/t Gold Scoping study: Basic open pit concept and flotation concentration To 350mRL (110m deep) 7.8:1 waste ore ratio Recover 1.5Mt @ 1.00% Cu and 0.26g/t Au Met work generated basic clean concentrate 20 – 27% Cu and 1.5
Slide 33: Orange Area Regional Geology – Newmont Joint Venture
Orange Area Molong 1m @ 3.36g/t Au and 0.65% Zn Regional 550m x 150m porphyry 1m @ 3.36g/t Au and 0.65% Zn 1m @ 9.69g/t Au and 0.20% Zn 1m @ 9.69g/t Au and 0.20% Zn 1m @ 9.91g/t Au and 0.56% Cu 1m @ 9.91g/t Au and 0.56% Cu 550m x 150m porphyry Geology 48m @ 0.31g/t Au 0.35 % Cu 48m @ 0.31g/t Au 0.35
Slide 34: Molong drilling 2005
Molong drilling 2005 Sedimentary replacement – sil-py Skarn – hem-cpy-py Breccia – hem-py LKANE
Slide 35: Nullagine Project Location and Infrastructure
Nullagine Project Location and Infrastructure 100 km LKANE
Slide 36: Nullagine Project – satellite image
Nullagine Project – satellite image Nullagine Bonnie Creek Palaeochannel LKANE
Slide 37: Nullagine Project Channel Iron Deposits
Nullagine Project Channel Iron Deposits Bonnie Creek System Potential 150 - 220M tonnes CID pisolite iron 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 58.13 Aver
Slide 38: Nullagine Project – Tertiary Palaeochannel
Nullagine Project - Tertiary Palaeochannel Bonnie Well Drill Traverse LKANE
Slide 39: Nullagine Project Progress
Nullagine Project Progress JV Alkane 60% Randolph Resources Syndicate 40% East Pilbara Aboriginal Heritage agreements signed Exploration Licence titles granted late April 2006 Close to finalising a plan to progress the project LKANE
Slide 40: A multi commodity explorer and miner
LKANE EXPLORATION LTD A multi commodity explorer and miner www.alkane.com.au 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 potential grow