Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Asia Mining Congress 2009
26 slides from Arafura Rare Earths's conference presentation, Mar 25, 2009
Slide 1: Arafura Resources Limited - Asia Mining Congress 2009
For personal use only Arafura Resources Limited Asia Mining Congress 2009 Alistair J Stephens Managing Director 26 March 2009
Slide 2: Important Notice
Arafura Resources Limited 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, perform
Slide 3: Flow of Presentation
Flow of Presentation For personal use only Who are we? o Board & management o Capital structure o A new partner What are rare earths? o Rare earths market The Nolans Project o Resource o Flow sheet o Pilot Plant results o How do we compare? o Status What are the project’s returns? How are
Slide 4: Arafura's Board
For personal use only Arafura’s Board Hon Ian Laurance AM Mick Muir Ian Kowalick Terry Jackson AM Dr. Steve Ward Chairman Director Director Director Director Age 68 Age 72 Age 63 Age 69 Age 53 Ian Laurance is Mick Muir is a Western Ian Kowalick is a Terry Jackson is a Steve Ward has a PhD in Chairma
Slide 5: Arafura's management team
For personal use only Arafura’s management team Alistair Stephens Gavin Lockyer Steven Mackowski Richard Brescianini Brian Fowler Managing Director / Company Secretary / GM – Project GM – Strategy & Manager Sustainability CEO CFO Development Exploration Age 55 Age 45 Age 41 Age 57 Age 46 Alistair St
Slide 6: Corporate structure
Corporate structure Current Structure Going Forward (post ECE) For personal use only Fully paid shares on issue 193.2m Fully paid shares on issue 258m Market Capitalization @A$0.30 A$58m Market Capitalization @A$0.30 +A$77m ANZ Nominees (German holding) 49.2% ANZ Nominees 36% Board & Management 6% B
Slide 7: New Partner - Jiangsu East China Exploration
New Partner - Jiangsu East China Exploration For personal use only East China Mineral Exploration & Development Bureau • Chinese SOE based in Jiangsu Province of China • Established 1955 – have discovered over 160 mineral deposits • 4,000 employees, 8 exploration divisions, 7 research institutions,
Slide 8: What are rare earths & their applications?
What are rare earths & there applications? For personal use only
Slide 9: Rare earths market
Rare earths market For personal use only Source: Roskill, IMCOA Excludes 100,000 tonnes per annum surplus rare earths separation capacity in China
Slide 10: Environmental & social benefits - Nolans
Environmental & social benefits - Nolans For personal use only REO Production Component End Product Potential Environmental Savings Reduces NOX which aggravates respiratory CeO2 3,500t Auto catalysts 25 million cars problems, causes acid rain and damages aquatic environments. Ultra violet Architectu
Slide 11: Nolans Project location
Nolans Project location For personal use only 5 km to gas line 10 km to Stuart Highway 60 km to rail line 135 km north of Alice Springs 1200 km north to Darwin 1300 km south to Port Pirie
Slide 12: Exposed at surface, open at depth
For personal use only Exposed at surface, open at depth, only drilled to 130m below surface, enough resources for 30 years. Resource statement published on ASX 11 November 2008.Rounding up accounts for apparent tonnage discrepancy
Slide 13: Nolans site design underway
Nolans site design underway For personal use only Initial Mining Area “North Zone” 500m
Slide 14: Nolans Project Flowsheet
Nolans Project Flowsheet Concentration | | RARE EARTH PHOSPHATE processing processing Calcium Chloride Rare Earth Uranium Phosphoric Basics Concentrate Oxide Acid (By-Product) See tti(<“‘“‘s™S™~™SO”C*C*C;C;CSCSC GO UOope a 08 EOI ON Wir sO OA
Slide 15: Pilot Plant success
Pilot Plant success For personal use only We have validated recoveries 9 Rare earths recovery 80% 9 Phosphate recovery 80% 9 Uranium recovery 80% The Pilot Plant has realised lower chemical consumption Hydrochloric acid 25% reduction Sulphuric acid 50% reduction Results in a real annual reductio
Slide 16: The Pilot Plant
The Pilot Plant HMC Tails and Concentrate For personal use only Chemical Processing Phosphoric Acid Recovery
Slide 17: Rare earth carbonate
Rare earth carbonate Only Arafura can demonstrate production of quality rare earth carbonate For personal use only
Slide 18: Nolans compared to other new REO projects
Nolans compared to other new REO projects Dubbo Hoidas Thor For personal use only Nolans Mt Weld Zirconia Lake Lake Resources 848,000 1,184,000 545,000 36,000 1,428,000 (tonnes REO) meas+ind+inf meas+ind+inf meas+inf ind ind+inf Reserves 321,000 TBA - - - (tonnes REO) 27% conversion rate Pilot Plant
Slide 19: Superior REE mix: a competitive advantage
Superior REE mix: a competitive advantage For personal use only
Slide 20: Product diversification - another competitive advantage
Product diversification – another competitive advantage For personal use only Comparative product values. Nolans includes co-product and by-product credits in US$/kg as REO equivalent based on February 2009 spot prices 20 CaCl Uranium Expressed in US$/kg REO equivalent US$/kg Phos Acid REO 10 Rare E
Slide 21: Capital expenditure - A$600m
Capital expenditure – A$600m Capital is accurate to 30% based on PFS. Additional capital reductions have been identified For personal use only through lower raw material costs (e.g. steel) and overseas modularisation. Mine, concentrate A$70m grind & leach Rare Earths Uranium Phosphoric CaCl2 Equipme
Slide 22: Financial analysis
Financial analysis NPV @ 10% discount rate $1.6 billion after tax and capital payback (20 year mine life) For personal use only Production per Price Total revenue annum (tonnes) (US$) as at March US$ million 2009 Rare earths 20,000 $10,000/tonne 200 P2O5 80,000 $750/tonne 60 Calcium chloride 400,000
Slide 23: Nolans Project status
Nolans Project status For personal use only 9 Resource to support long life operation of +20 years no resource risk 9 Pilot Plant successfully operating the process works 9 Bankable Feasibility Study in progress a development plan 9 Site selection for processing plant in progress the lowest cost bas
Slide 24: Proposed operating model
Proposed operating model For personal use only ECE’s corporate investment Chinese technical and Additional exploration & marketing expertise development strategy Arafura Looking for more REO Bao Tou Steel REHT Seeking partner 100% opportunities MOU Phosphate Rare earth Separation & Resources & Minin
Slide 25: The plan ahead
The plan ahead For personal use only ¾ Complete RE separation work 1st half 2009 ¾ Complete definitive feasibility study 2009/10 ¾ Mining lease approval 2009/2010 ¾ Processing plant Notice of Intent 2009/2010 ¾ Undertake project costing, sourcing 2010 ¾ Project financing 2010 ¾ Consolidate our partn
Slide 26: Arafura Resources Limited
ARAFURA RESOURCES LIMITED