Alkane Resources Ltd · ASX:ALK
Alkane Resources — 11th International Rare Earth Conference 2015
28 slides from Alkane Resources's conference presentation, Nov 10, 2015
Slide 1: Not Only Rare Earths - Dubbo Zirconia Project
For personal use only “Not Only Rare Earths - Dubbo Zirconia Project” New South Wales, Australia 11th International Rare Earth Conference Singapore 9-12 November 2015
Slide 2: For personal use only
For personal use only © 2015 Alkane Resources Ltd 2
Slide 3: Alkane Current Operations
Alkane Current Operations For personal use only Tomingley Gold Operations $115 million TGP funded from internal financial resources – no debt • Resource – 688,000oz of gold (21 September 2015) • Mine Method – open cut & underground • Mine Life – 7.5 years (targeting 10+ years) • Processing plant thr
Slide 4: 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 5: DZP 2015 Key Milestones
DZP 2015 Key Milestones For personal use only State Approval 28 May Federal Department of Environment Approval 25 August Front End Engineering Design (FEED) completed 27 August Revamped flowsheet, with specific rare earth separation on site, improved waste management and reduced water consumption Te
Slide 6: Geology and Resources
Geology and Resources For personal use only Trachyte lava ~190 million years age Simple open pit mining (quarry like) – depth of Largely homogeneous ore body ~35 metres after 20 years of operation Ore mineralogy: • eudialyte “like” Zr hydrous silicate (Zr, Hf, Y, HRE) • Resources and reserves detail
Slide 7: Process Flowsheet – 2015 Changes
Process Flowsheet – 2015 Changes For personal use only Addition of hafnium circuit Further onsite separation of rare earths Replacement of evaporation ponds with in-process evaporation © 2015 Alkane Resources Ltd 7
Slide 8: ANSTO Demonstration Pilot Plant
ANSTO Demonstration Pilot Plant For personal use only DPP Filtration, PLS, SX, Zr & Nb recovery Zirconium refining & precipitation DPP Facility Y and HREE refining & recovery Reverse osmosis & water recycle Hafnium recovery & refining © 2015 Alkane Resources Ltd DPP operating since 2008 8
Slide 9: 3D Plan of Commercial Plant
3D Plan of Commercial Plant For personal use only © 2015 Alkane Resources Ltd 9
Slide 10: Product Output
Product Output For personal use only 6,664 tpa Rare earth chemical concentrate 95% REO (REO units) Product Output 16,374 tpa Zirconium as ZBC (carbonate) & zirconia 99% ZrO2 (ZrO2 units) Assumed 50% 200 tpa Hafnium as HfO2 recovery (Hf units) 1,967 tpa Niobium as ferro-niobium 65% Nb (Nb units) Tonn
Slide 11: Rare Earth Output
Rare Earth Output For personal use only DZP REE SX Toll treatment – off site Rare Earth Concentrates La2O3 1,441 tpa La / Ce CeO2 2,367 tpa Pr6O11 237 tpa Pr / Nd Nd2O3 921 tpa Sm2O3 112 tpa Sm / Eu / Gd Eu2O3 3 tpa Gd2O3 107 tpa Tb / Dy / Ho / Er / Tb4O7 14 tpa Tm / Yb / Lu Dy2O3 122 tpa Y (2/3N) Y
Slide 12: 2015 Financial Summary
2015 Financial Summary For personal use only Front End Engineering Design (FEED) completed August 2015 Capex US$0.97B / US$77M contingency Revenue US$430 - $470Mpa Opex US$195Mpa EBITDA US$235 - $275Mpa 20 year NPV US$0.92B (8%) and 17.5% IRR Revenue based upon Chinese domestic rare earth prices and
Slide 13: Marketing and Off-take
Marketing and Off-take For personal use only Joint venture with Treibacher Industrie AG to produce and market ferro-niobium Finalising a zirconium product marketing agreement for world wide sales Advancing the off-site rare earth processing agreement to enable marketing of separate rare earth produc
Slide 14: Infrastructure
Infrastructure For personal use only Existing infrastructure to be utilised and upgraded as required Upgrade Obley Road to B-double standard (27km) 132kV powerline Geurie to Toongi 8km Macquarie River Water Pipeline 30km gas pipeline in rail corridor Construction to commence by March 2016 © 2015 Alk
Slide 15: Environment
Environment For personal use only Alkane has a 25 year history of sustainable mine management Community • Strong support from local area and Dubbo city Water • 70% recycle of process water currently achievable • Limited site groundwater aquifers – minimal impact • Water secured from existing water l
Slide 16: Funding Strategy
Funding Strategy For personal use only Investment at Project Government Commercial Bank Equity Capital Level Assistance Programs Debt (CBD) Markets (ALK) • Strategic • ECA Style Funding • Advisors: SMBC & • Advisors: Credit Suisse Investment(s) • Lead coordinator: Credit Suisse & Petra Capital • Adv
Slide 17: Timetable
Timetable For personal use only FEED provided about 30% detail design and the Project is now at construction stage awaiting finance. Estimates of times are indicative only and are subject to change. Alkane reserves the right to vary the timetable without notice. © 2015 Alkane Resources Ltd 17
Slide 18: Zirconium Industry
Zirconium Industry For personal use only Zircon Demand by End Use (2015 ~ 1 million tonnes) Other 3% Foundry 12% Ceramics 47% Chemicals 21% Refractory 17% Global market US$2-3B China dominates downstream 2015 producer zircon inventories still high zirconium industry (85-90%) Market expected to stabi
Slide 19: Zirconium Applications
Zirconium Applications For personal use only Auto exhaust catalysts – ceria stabilised zirconia Thermal barrier coatings – yttria stabilised zirconia for jet and industrial gas turbines, and many other applications Substantial growth in advanced ceramics and cubic zirconia (jewellery) Current world
Slide 20: Hafnium Industry
Hafnium Industry For personal use only Super Alloys - 73% of 2015 supply By-product from zirconium metal • Depends on nuclear industry Prices escalating through demand by aerospace industries 2014 into 2015 © 2015 Alkane Resources Ltd Source: Modified after Lipmann Walton & Co Ltd 2015 20
Slide 21: Hafnium Applications
Hafnium Applications For personal use only Many innovations developing around hafnium Addition of 1%-2% Hf to NiCo alloys raises operating temperature from 1,400oC to 2,000oC providing fuel Reflective HfO2-SiO2 layer pushes energy in to space and efficiencies, energy output and emission minimisation
Slide 22: Niobium Industry
Niobium Industry For personal use only 90% of Nb used in standard grade ferro-niobium for the production of high strength low alloy (HSLA) steels World production estimated at 80,000t Nb in 2014. CBMM in Brazil accounts for 85% Global market US$3-4B. Price stability since 2008, including GFC CAGR an
Slide 23: Rare Earth Industry
Rare Earth Industry For personal use only REE Demand 2016 by Application US$3-5B Global market Other 136,000t Annual consumption 2014 Catalysts 8% 18% 3-5% Annual growth estimates Ceramics 85-90% REE produced by China 5% Glass 6% Phosphors 5% Permanent magnet dominant consumer and growth ~ 8% pa Ann
Slide 24: China’s REE dominance
China’s REE dominance For personal use only The value increases from US$4B Minerals; US$40B Materials; US$400B Components; to US$4T Systems Is the rest of the world prepared to accept China’s domination of high-tech and advanced materials manufacture? Renewable Source: Karl Gerald van den Boorgart,
Slide 25: Conclusion
Conclusion For personal use only Internationally strategic with supply of several critical metals from non-Chinese sources Business case has robust revenues, even at current Chinese domestic RE and Zr prices Full spectrum of rare earth magnet materials – neodymium, praseodymium, dysprosium and terbi
Slide 26: Thank you
For personal use only © Thank you 26
Slide 27: 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 28: 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
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