Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Roskill Hong Kong Rare Earths Conference 2008
22 slides from Arafura Rare Earths's conference presentation, Nov 19, 2008
Slide 1: Nolans: Keeps on delivering great results
For personal use only Arafura Resources Limited Nolans Keeps on delivering great results Alistair J Stephens Managing Director Roskill Hong Kong Rare Earths Conference 19 November 2008
Slide 2: Important Notice
Arafura Resources Ltd For personal use only Important Notice This presentation contains certain statements which may constitute "forward-looking statements". Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance
Slide 3: Arafura's Objectives
Arafura’s Objectives To be a competitive rare earths producer For personal use only • Memorandum of understanding with Inner Mongolia Bao Tou Steel Rare Earth Hi-Tech Co. Ltd • Leveraging on technical experience • Leveraging on marketing experience • Looking for other global growth opportunities
Slide 4: Arafura's – what has been achieved in 2008?
Arafura’s – what has been achieved in 2008? 30.3 million tonnes of total resources For personal use only A +63% increase from November 2005 statement Still plenty of additional mineralisation potential has been identified Successful pilot demonstration plant trials Successful concentration
Slide 5: Arafura's Nolans Project – located close to ideal infrastructure
Arafura’s Nolans Project – located close to ideal infrastructure For personal use only 1200 km north to Darwin 5km to gas pipe line 10km to Stuart Highway 15km to Aileron Roadhouse 1300 km south to Spencer Gulf 60 km to rail line
Slide 6: Resources
Nolans – Resources Mt REO% P2O5% U3O8 lb/t For personal use only Measured 5.1 3.2 13.5 0.57 Indicated 12.3 2.8 13.4 0.43 Inferred 12.8 2.6 12.2 0.40 Total 30.3 2.8 12.9 0.44 Metal content 848kt 3.9Mt 13.3M lbs Exposed at surface, open at depth, only drilled to 130m below surface, enough resources fo
Slide 7: Rare Earths Mix has improved in value
Nolans Rare Earths Mix has improved in value %age For personal use only Cerium Ce 48.2 Lanthanum La 20.0 Praseodymium Pr 5.9 Samarium Sm 2.4 Gadolinium Gd 1.0 Terbium Tb 0.08 Dysprosium Dy 0.34 Other 0.17 Total 100.0% And Yttrium 320ppm per resource tonne Rare earths distribution calculated from all
Slide 8: Site design underway
Nolans – site design underway For personal use only N Initial Mining Area “North Zone” Sterilized Zone Conceptual Pit Surface Expression 500m
Slide 9: Project Flowsheet
Nolans Project Flowsheet Chemical Separation RARE EARTH processing PHOSPHATE proce ssing Calcium Chloride Residue (By-Product)
Slide 10: Heavy Media Concentration (HMC)
Heavy Media Concentration(HMC) For personal use only Concentration demonstration plant results (North zone) 35% rejection of waste and 85% recovery of REO and phosphate Will upgrade the life-of-mine resource from 3.1% REO to +6% and higher in the initial years of production Concentration plant optim
Slide 11: Heavy Medium Cyclone Test Rig
Heavy Medium Cyclone Test Rig For personal use only
Slide 12: Heavy Media Concentration
Heavy Media Concentration Tails Concentrate For personal use only
Slide 13: Pilot Plant Chemical Processing
Pilot Plant Chemical Processing For personal use only
Slide 14: Phosphoric Acid Recovery
Phosphoric Acid Recovery For personal use only
Slide 15: The demonstration plant success
The demonstration plant success For personal use only Rare earths recovery 80% Phosphate recovery +80% Technical grade (fertiliser grade higher) Uranium recovery 80% indicative Calcium chloride residue Identification of capital plant reductions Chemical reagent consumption down compared
Slide 16: Estimated capital costs
Nolans estimated capital costs 30% = A$600m For personal use only Mine, concentrate A$70m grind & leach Rare Earths Uranium Phosphoric CaCl2 Equipment costs A$75m A$15m A$100m A$25m Installation A$75m A$15m A$100m $A25m All plant A$150m $30m A$200m $A50m 20,000 tpa RE carbonate RE Separation plant 2
Slide 17: Enriched in higher value rare earths
Nolans is enriched in higher value rare earths For personal use only 5% percentage 27% 68% Value US$/Kg 10.18 11.79 12.21 13.95 14.91 Nolans has additional a co-product of phosphoric acid and by-products of uranium and calcium chloride Baotou has a co-product of iron SEGY = Samarium, europium, gadol
Slide 18: Total product value
Nolans total product value Product value including co-product and by-product credits in US$/kg as REO equivalent For personal use only Nolans Expressed in US$/Kg REO equivalent US$/kg REO
Slide 19: Valuation
Nolans Valuation For personal use only Production per Current price Total revenue annum (tonnes) ($US) US$ million pa Rare earths 20,000 *14,000/tonne 280 P2 O 5 80,000 1,000/tonne 80 Calcium chloride 400,000 100/tonne 40 Uranium 150 60/lb 20 Total revenue US$420 Total revenue at USD:AUD 0.70 AUD$60
Slide 20: Proposed operating model
Proposed operating model Plan ahead For personal use only 1. Complete rare earth carbonate demonstration plant 2. Undertake rare earth separation pilot plant 3. Complete BFS 4. Project financing Arafura Incitec Pivot Looking for more Baotou Steel RE* 100% MOU REO opportunities MOU Resources & Chemic
Slide 21: The plan ahead
The plan ahead For personal use only Looking forward Complete RE carbonate demonstrations Dec 2008 Complete separation demonstration 1st half 2009 Complete bankable feasibility & environmental studies Dec 2009 Undertake costing, sourcing, project financing 1st half 2010 And consolidate our p
Slide 22: For personal use only
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