Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Roskills Metal Events Rare Earths Conference 2007
11 slides from Arafura Rare Earths's conference presentation, Nov 5, 2007
Slide 1: Nolans Project – Roskill Rare Earths Conference, Hong Kong
Arafura Resources Ltd For personal use only Nolans Project Roskills – Metal Events Rare Earths Conference Hong Kong 5 November 2007
Slide 2: Nolans - Fact Sheet
Nolans - Fact Sheet For personal use only 1. A significant resource of rare earths 2. Exposed at surface – a small, long life, low cost, safe, open pit 3. A specific process flow sheet to separate products streams • Rare earths to separated product (99% grade) • Phosphoric acid (merchant grade to te
Slide 3: Nolans - Valuation
Nolans - Valuation For personal use only 1. NPV of AUD $1.1 Billion (post tax) 2. Revenue of AUD $8.25 billion (2007 dollars) 3. Operating life of 20 years 4. Revenue from 4 product streams • Rare earths (65%), phosphoric acid (16%), calcium chloride (11%), uranium (8%) 5. Exchange rate of AUD$1 = U
Slide 4: PFS assumptions
Nolans – PFS assumptions For personal use only 1. Capital costs estimated at AUD$750m • A base of AUD$450m for all plant • Includes mine site, RE (99%), Phos acid, Calcium Chloride & Uranium • Includes AUD$120m for contingency – scope change • Includes AUD$180 for first fill chemicals, EPCM etc • As
Slide 5: Valuation - Assumptions
Nolans Valuation - Assumptions For personal use only 1. Conservative Pricing • Rare earths 20,000 tonnes @ US$ 11,600 / t • Phosphoric acid 150,000 tonnes @ US$ 400 / t • Calcium Chloride 400,000 tonnes @ US$ 100 / t • Uranium Oxide 150 tonnes @ US$ 100/lb 2. Conservative exchange rate @ 0.90 3. Esc
Slide 6: Project - Opportunities
Nolans Project - Opportunities For personal use only 1. Resources grade • Assumes the average resource grade – conservative • Optimum feed grade analysis in progress • Clay rejection work in progress 2. Capital costs • Savings expected with components manufactured overseas • Capital requirements und
Slide 7: Project - Opportunities
Nolans Project - Opportunities For personal use only 6. Exchange rate • The long term forecast USD : AUD is 0.75 • At AUD$1=USD$0.75 has a +$600m impact on NPV 7. Pricing PFS Current prices^ • Rare earths* US$ 11,600/t US$ 13,900/t • Phosphoric acid US$ 400/t US$ 500 – 600/t • Calcium chloride** US$
Slide 8: Project Flowsheet
Nolans Project Flowsheet = € = < — % % OPEN PIT MINING LOAD AND HAUL TAILINGS (PITRETURN) "3 STOCKPILE CRUSHER eo RAIL TO DARWIN LIQUOR <= <= ACID ACID DIGEST DIGEST Ss = Ist REO STREAM REO PRODUCTS SULPHURIC E ACID — | DIGEST DIGEST = i URANIUM EXTRACTION <a ta THORIUM URANIUM RESIDUE OXIDE 2nd REO
Slide 9: Development Timeline
Development Timeline For personal use only Development Plans – Nolans 2008 Pilot plant & detailed engineering design 2009 Approvals processes 2010 Construction & commissioning 2011 Production at 50% utilisation = 10,000 t REO 2012 Production at 75% utilisation = 15,000 t REO 2013 Production at 100%
Slide 10: Planned Activities
Planned Activities For personal use only Finalise test work • Uranium recovery (previously reported indicatively at 80%) • Thorium rejection • Report due late 2008 Resources drilling targets (<20,000 metres program in progress) • Additional resources • Improved definition of current resources • High
Slide 11: Summary
Summary For personal use only Nolans • Long life operation enriched in high value rare earths • Multiple revenue streams lowers commercial risk • More complex plant design • Pilot plant and definitive feasibility study (DFS) in 2008 • Still significant amounts of engineering studies to be undertaken
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