Alkane Resources Ltd · ASX:ALK
Alkane Resources — AusIMM Wollongong Meeting (April 2014)
33 slides from Alkane Resources's conference presentation, Apr 9, 2014
Slide 1: Dubbo Zirconia Project (DZP) & Tomingley Gold Operations (TGO)
ALKANE RESOURCES Ltd Dubbo Zirconia Project (DZP) & Tomingley Gold Operations (TGO) Natalie Chapman Corporate Communications Manager AusIMM Wollongong - 9 April 2014
Slide 2: Corporate Profile
Corporate Profile • Listed on ASX since 1969, also listed on OTCQX in US • Market cap $120M • 6,300 shareholders (mainly Australian) • Multi commodity explorer, miner and developer focused on Central West of NSW • Active in region for more than 20 years • Developed Peak Hill Gold Mine in 1996, opera
Slide 3: Board & Management
Board & Management Board Senior Management John S F Dunlop (Chairman) BE(Min), MEngSc(Min). Mining Michael Ball (Chief Financial Officer) CA BCom engineer Nic Earner (Chief Operations Officer) BEng (Honours) D Ian Chalmers (Managing Director) MSc. Geologist Terry Ransted (Chief Geologist)
Slide 4: Operations – Tomingley Gold Project
Operations – Tomingley Gold Project Base case statistics • Project approval by NSW Department of Planning and Infrastructure late July 2012 • Mining Lease approved February 2013 • Resource – 921,000oz of gold • Construction CAPEX – A$107M • Mine Method – open cut & underground • Mine Life – 7.5years
Slide 5: TGP Resource Expansion
TGP Resource Expansion Geological Summary – Wyoming / Caloma Pelitic Sediments Feldspar porphyry Volcaniclastic sediments Graphitic mudstone Volcaniclastic conglomerate Epidote altered volcanics Chlorite-talc schist Andesitic volcanics Mineralisation Additional Resource Potential Caloma Two open pit
Slide 6: TGP Construction
ALKANE RESOURCES LTD Narromine u Se ewe ce TOMINGLEY Tomingtey west Ros Drilling Highway Access Road i prec Sater SO ra 2
Slide 7: Wyoming 3
ALISANE Wyoming 3
Slide 8: Plant Operations
ALKANE Plant Operations
Slide 9: TGO Gold Pour
ALISANE TGO Gold Pour
Slide 10: Dubbo Zirconia Project
Dubbo Zirconia Project • Very large polymetallic resource* (homogenous ore body) of 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 life at 1Mtpa processing
Slide 11: Dubbo Zirconia Project
Dubbo Zirconia Project • Proposed refurbishment/upgrade of Dubbo- Toongi section of railway (closed 1987) for 92t wagons • Proposed 30km gas pipeline in rail corridor • Proposed 132kV power line Geurie to Toongi • Proposed 8km Water Supply Pipeline from Macquarie River to Toongi • Expected to start
Slide 12: Thorium Levels - Dubbo Region
Thorium Levels - Dubbo Region Higher concentration of thorium Dubbo Town • Regional aero- radiometric image of Western Plains Zoo thorium concentration in Dubbo • Thorium is a Naturally Wellington Occurring Radioactive Material (NORM) Dubbo Zirconia Plant Lower concentration of thorium Source: GSNSW
Slide 13: Geology, Resources & Reserves
Geology, Resources & Reserves © Jurassic aged trachyte lava or sub-volcanic intrusive Largely homogenous ore body 13
Slide 14: Resources & Reserves
Resources & Reserves Resources & Reserves • Resources & Reserves: open at depth • Life: +20 years but can support longer life and higher production rates • Major world resource: zirconium, hafnium, niobium, tantalum, yttrium & rare earth elements Resources Depth (m) Tonnes (Mt) Grade 1.94% Zr02, 0.0
Slide 15: DZP Ore Mineralogy
DZP Ore Mineralogy Zirconium eudialyte ZrSiO4 ± Ca, Y, < 2mm - 50mm Heavy REs armstrongite HREE, H2O +?U Niobium/ NaNbO3 + Ta + ?Th natroniobite < 30mm Tantalum also NbFeSiO4 calcian Ca(REE)(CO3)F basnaesite Rare Earths < 100mm rare ancylite Sr(REE)(CO3)H2O The deposit does not contain zircon; pyroc
Slide 16: Metallurgy
Metallurgy Process development work began in 1999 and the basic flow sheet trialed at mini-pilot plant stage in 2001 - 2002 • Preliminary test work on HCl, HF, NaOH leaching, and H2SO4 roasting and leaching • Preliminary flotation to assess potential for pre-concentration • Scan of various physical
Slide 17: Demonstration Pilot Plant 2008
Demonstration Pilot Plant 2008 17
Slide 18: DZP Pilot Plant
DZP Pilot Plant Operating at ANSTO Since 2008 18
Slide 19: DZP Process Flow Sheet
DZP Process Flow Sheet • Simple open cut mining operation • Crushing and grinding • Sulphuric acid, roast, leach whole of ore • Solvent extraction, separation & refining © 19
Slide 20: DZP Estimated Product Output @ 1Mtpa
DZP Estimated Product Output @ 1Mtpa 100% 5% 1,309t 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 product 20% outputs 31%
Slide 21: DZP Products
DZP Products • Zirconium Products: zirconium sulphate, hydroxide, oxychloride, oxide • Niobium Products: niobium oxide concentrate, ferro-niobium • Light Rare Earth Concentrate: lanthanum, cerium, neodymium, praseodymium, samarium chloride/oxide • Heavy Rare Earth Concentrate: yttrium, gadolinium, t
Slide 22: DZP Processing Plant
ALKANE . RESOURCES LTD DZP Processing Plant Sulphuric acid production & storage Roasting [] Solvent extraction Leach and filtration [| Zirconia recovery Niobium recovery Heavy rare earths recovery Light rare earths recovery |_| Waste neutralisation LC] Chemical storage (7) Limestone and time a Final
Slide 23: DZP Processing Plant
DZP Processing Plant Example of a commercial solvent extraction plant
Slide 24: Rare Metals - Rare Earths
Rare Metals - Rare Earths Rare Metals – Rare Earths • China produces 90% of world downstream zirconium chemicals • China currently produces 95% of world REE output • China is limiting the export of raw rare Rare metals earths materials • Brazil produces 90% of world niobium Light rare earths Mids He
Slide 25: DZP Product Applications
DZP Product Applications 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: • Special steels, all
Slide 26: DZP Pathway to Market
DZP Pathway to Market Agreements to secure 100% of output 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 • Ceramic colours laborato
Slide 27: Funding Strategy
Funding Strategy Government Assistance Programs/ECA style funding 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 Commercial Bank Debt Fina
Slide 28: Anticipated Approvals Timeline
Anticipated Approvals Timeline 28
Slide 29: DZP Major Milestones
DZP Major Milestones 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 change. Alkane reserv
Slide 30: Disclaimer
Disclaimer 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 or other trend projecti
Slide 31: DZP Resource & Reserves
DZP Resource & Reserves 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 0.75 These Mineral Reso
Slide 32: Conclusion: Dubbo Zirconia Project
Conclusion Dubbo Zirconia Project A strategic and alternate supply for the zirconium, niobium and rare earths industries The DZP is a world class project capable of supplying “new age metals” in to rapidly developing international markets for many years. It will have great benefit to the Central Wes
Slide 33: Mining the metals of the future
ALKANE RESOURCES Ltd Mining the metals of the future Mike Sutherland General Manager, NSW msutherland@alkane.com.au 0427 691 733
Alkane Resources — AusIMM Wollongong Meeting (April 2014) on 6ix