Alkane Resources Ltd · ASX:ALK
Alkane Resources — Industrial Minerals International Congress (April 2014)
21 slides from Alkane Resources's conference presentation, Apr 2, 2014
Slide 1: Dubbo Zirconia Project, NSW Australia
ALKANE RESOURCES LTD AUSTRALIAN ZIRCONIA LIMITED For personal use only Dubbo Zirconia Project NSW Australia A new source of zirconium materials and other critical metals and oxides Alister MacDonald -Technical Ceramic Marketing Services Ian Chalmers – Alkane Resources Ltd
Slide 2: Corporate Profile
Corporate Profile For personal use only • Listed on ASX since 1969, also listed on OTCQX (US) • Market cap ~$120M • ~6,300 shareholders • Multi commodity explorer, miner and developer focused on Central West of NSW, Australia • Active in region for more than 20 years • Developed Peak Hill Gold Mine
Slide 3: Zirconium Industry
Zirconium Industry For personal use only Increasing prices Increasing purity Global Market ‘Value’: US$2-3 B © 3
Slide 4: Zirconium Industry
Zirconium Industry Zirconium Chemicals Output For personal use only (2011 – 194,000t ZrO2 basis) Baddeleyite 7,000t ZOC Fused 50,000t unstabilised zirconia 72,000t Fused Chemical stabilised Zirconia zirconia 40,000t 25,000t • 2013 consumer zircon inventories running down • Market expected to move ba
Slide 5: Estimated Zirconium Demand to 2020
Estimated Zirconium Demand to 2020 For personal use only Zirconium materials 2011 2012 2015f 2020f 2020f (100% ZrO2 basis) tpa tpa tpa tpa tpa Growth rate %/year 7% 5% 7% Baddeleyite 7,000 6,000 8,000 8,000 8,000 72,000 48,000 59,000 71,000 82,000 Fused unstabilised zirconia Fused stabilised zirconi
Slide 6: Zirconium Issues to 2020
Zirconium Issues to 2020 For personal use only • Availability of premium zircon for fused zirconia - will require ~160-180,000t - low Al2O3 with minimal particle size < 45 micron - availability of zircon with <300 ppm U+Th • Consolidation of Chinese fused and zirconium chemical industry - production
Slide 7: REE Industry in 2013
REE Industry in 2013 For personal use only FORECAST REE DEMAND 2016 • Global market estimated at US$3-5B Other of ~110,000 t Catalysts 12% 15% • China produces about 90% of world supply and consumed about 65%, Ceramics with Japan 15% and the US 14% 6% Glass • The REE industry is “imbalanced” with 6%
Slide 8: REE industry in 2017
REE industry in 2017 For personal use only Forecast Global Rare Earths Demand in 2017 (t REO ±20%) Demand Supply/Production Rare Earth Oxide REO Tonnes Per Cent REO Tonnes Per Cent Lanthanum 40,800 28.1% 47,800 27.4% Cerium 51,295 35.4% 75,500 43.2% Praseodymium 8,400 5.8% 8,500 4.8% Neodymium 28,92
Slide 9: REE Industry in 2020
REE Industry in 2020 For personal use only • Demand in 2020: 200-240,000 tpa REO • Demand trends: • Greater availability of non- Chinese products • Greater total supply chain management • Higher consumption of HREEs if available • Supply in 2020: 240-280,000 tpa REO • Supply trends: • Limited scope
Slide 10: Niobium Industry
Niobium Industry Main traded product is ferro-niobium For personal use only 13% 29% Structural 10% Pipe Auto Stainless Other 24% 24% • 90% of Nb used in standard grade ferro-niobium for the production of high strength low alloy (HSLA) steels • Nb HSLA steels are primarily consumed in structural and
Slide 11: Dubbo Zirconia Project
Dubbo Zirconia Project • Very large polymetallic resource* (homogenous ore body) of For personal use only the metals zirconium (hafnium), niobium (tantalum), yttrium and rare earths • Important and strategic metal mix - 25% of rare earth output is in “heavy” group • Reserve* supports 35 year mine li
Slide 12: DZP Ore Mineralogy
DZP Ore Mineralogy For personal use only Zirconium eudialyte ZrSiO4 ± Ca, Y, < 2µm - 50µm Heavy REs armstrongite HREE, H2O +?U Niobium/ NaNbO3 + Ta + ?Th natroniobite < 30µm Tantalum also NbFeSiO4 calcian Ca(REE)(CO3)F basnaesite Rare Earths < 100µm rare ancylite Sr(REE)(CO3)H2O The deposit does not
Slide 13: DZP Process Flow Sheet
DZP Process Flow Sheet For personal use only • Simple open cut mining operation • Crushing and grinding • Sulphuric acid, roast, leach whole of ore • Solvent extraction, separation & refining 13 ©
Slide 14: DZP Pilot Plant
DZP Pilot Plant For personal use only Operating at ANSTO Since 2008 14
Slide 15: DZP Estimated Product Output @ 1Mtpa
DZP Estimated Product Output @ 1Mtpa 100% 1,309t For personal use only 5% 90% 95% yttrium, dysprosium, 20% 4,665t 30% terbium 80% 28.5% of revenue 8% 1,967t 70% 90% neodymium, 60% 24% praseodymium 21.6% of revenue 50% 15,827t 40% 16% 67% Revenue reasonably 30% equally distributed between all four pr
Slide 16: DZP Product Applications
DZP Product Applications For personal use only Multiples end uses for DZP products Zirconium Materials: • Electronics, ceramics, glass, refractories, chemicals, metal, catalysts Rare Earth Materials: • Electronics, magnets, ceramics, glass, metal alloys, phosphors, catalysts Niobium Materials:
Slide 17: DZP Pathway to Market
DZP Pathway to Market Agreements to secure 100% of output For personal use only Zirconium (Zr) • Leading chemical company to develop applications and markets in Asia for zirconia produced by DZP • MoU with European manufacturer /trading company to market DZP products in Europe and North America • Ce
Slide 18: Funding Strategy
Funding Strategy Government Assistance Programs/ECA style funding For personal use only Lead Coordinator: Sumitomo Mitsui Banking Corporation (SMBC) Attractive Project: long life low cost strategic source of critical metals long term off-take agreements with international companies Comme
Slide 19: DZP Major Milestones
DZP Major Milestones For personal use only Major Milestones 2013 2014 2015 2016 Environmental Impact Statement Project Approval Process Project Financing Program Engineering Contract Front End Engineering Design (FEED) CONSTRUCTION PRODUCTION Estimates of times are indicative only and are subject to
Slide 20: Disclaimer
Disclaimer For personal use only 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 growth of Alkane Resources Ltd, industry growth o
Slide 21: DZP Resource & Reserves
DZP Resource & 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 0.14 0
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