Slide 1: ASX cover letter for corporate presentation
R ES O U RCES L TD AB N 3 5 0 0 0 6 8 9 2 1 6 For personal use only 4 March 2011 Manager Announcements Company Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION Attached is a copy of the Company’s updated corporate presentation. A copy of this presentation will
Slide 2: Corporate Presentation March 2011
For personal use only …putting the pieces together Corporate Presentation March 2011
Slide 3: Corporate snapshot
Corporate snapshot For personal use only Shareholder profile* Exchanges ASX: ALK OTCQX: ANLKY Share Price (2 March 2011) A$1.18 Shares 269m Fully Diluted Market Cap ~A$315m C h (at Cash ( t 28 FFebruary b 2010) ~A$22 2 ~A$22.2m Retail Top 20 ~60% No debt Institutions Directors & Management 3% 12 Mon
Slide 4: DZP Location, Central West New South Wales
DZP Location For personal use only Central West New South Wales
Slide 5: Business Strategy
Business Strategy For personal use only Multi commodity explorer and miner, focussed in the Central West of New South Wales, Australia Dubbo Zirconia Project – world class resource of zirconium, hafnium, niobium, tantalum, yttrium and rare earths Au Cu Gold production from Peak Hill mine 1996 – 2005
Slide 6: Dubbo Zirconia Project Definitive Feasibility Study
For personal use only Dubbo Zirconia Project Zirconium, niobium, yttrium, rare earth elements Definitive Feasibility Study TZ Minerals International Pty Ltd Study managers: Steve Gilman and Gavin Diener Marketing: Alister MacDonald (TCMS) and Dudley Kingsnorth (IMCOA) DPP Operations: ANSTO Minerals
Slide 7: Rare Metals – Rare Earths
Rare Metals ‐ Rare Earths For personal use only 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 Lig
Slide 8: Dubbo Zirconia Project Location
Dubbo Zirconia Project Location For personal use only D bb region Dubbo i pop 80,000 80 000 State power grid State gas grid Major mixed agriculture Transport hub Substantial light industry
Slide 9: DZP Resources
DZP Resources For personal use only Measured Resource : 35.7 million tonnes grading 0 - 55 metres 1.96% Zr02, 0.04%HfO2, 0.46% Nb2O5 , 0.03% Ta2O5 , 0.14% Y2O3, 0.75% REO and 0.014% U3O8 Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres TOTAL : 73.2 million tonnes Major world
Slide 10: DZP Flow Sheet
For personal use only DZP Flow Sheet
Slide 11: DZP Demonstration Pilot Plant
DZP Demonstration Pilot Plant For personal use only
Slide 12: Zirconium Applications
Zirconium Applications For personal use only
Slide 13: Zirconium Industry
Zirconium Industry For personal use only Zircon Zirconium silicate ZrSiO4 Primary Zr mineral source Value 2010 1.4 million tonnes ~US$1.6 billion Æ US$2B Zi Zirconium i products d t Zirconia Zi i ZZrO O2 , Zirconium Zi i chemicals, h i l Zr Z metal t l 2010 120,000 tonnes ~US$0.7 billion Æ US$1B Sou
Slide 14: Zircon Usage
Zircon Usage For personal use only Zircon provides the feedstock for the zirconium industry 2012 Global consumption p estimate 1,400,000tpa 18% = 250,000t zircon for zirconia and zirconium chemicals Source: TZMI
Slide 15: Zircon Supply Demand Price
Zircon Supply Demand Price For personal use only 20% shortfall by 2020 Zircon prices have escalated by 50% during 2010 to US$1,500/t Zircon p price and supply pp y will have a major j impact p on the cost and availabilityy off zirconium chemicals, zirconia and zirconium metal. China has declared zir
Slide 16: Downstream Zirconium Industry
Downstream Zirconium Industry For personal use only China supplies about 90% of the world’s downstream zirconium products Source: TZMI / TCMS
Slide 17: DZP Zircon - Zirconium Chemicals Pricing
DZP Zircon ‐ Zirconium Chemicals Pricing For personal use only Source: TCMS
Slide 18: Niobium Applications
For personal use only Niobium Applications
Slide 19: Structure of Niobium Industry
Structure of Niobium Industry For personal use only Metallurgical Structural steels Stainless and heat Pyrochlore FeNb resistant steels Superalloys Super conducting magnets DZP process removes radioactive elements Columbite Nb 2 O 5 such as uranium and Tantalite Oxides thorium, producing Glass clean
Slide 20: Niobium Demand
Niobium Demand For personal use only Niobium 2008 (Ferroniobium units) consumption ~85,000t – 90% Brazil Estimate for 2012 ~100,000t Ferroniobium price spiralled to US$60/kg in March 07 and is currently around US$43/kg Sources: IAMGOLD / TZMI
Slide 21: REE Applications
For personal use only REE Applications
Slide 22: Rare Earth Supply - Demand
Rare Earth Supply ‐ Demand For personal use only Separated rare earth products Value 2010 130,000 tonnes ~US$2.0 billion Æ US$4B Source: IMCOA
Slide 23: REE Demand Drivers
REE Demand Drivers For personal use only Source: IMCOA
Slide 24: DZP Rare Earth Pricing
DZP Rare Earth Pricing For personal use only Rare Earths Prices 2010 (US$/kg REO) (Source: Metal Pages© ) Current Light Rare Earth DZP Q2 Average Q3 Average Q4 Average Spot (28 Feb) Distribution Lanthanum Oxide 19.5% $7.13 $25.75 $53.00 $80 Cerium Oxide 36.7% $5.58 $24.50 $50.00 $80 y Praseodymium O
Slide 25: DZP Product Output and Revenues
DZP Product Output and Revenues For personal use only Base case model of 400,000 tonnes pa and expanded 1 million tonnes pa of ore processed Potential Production and Revenues January 2011 Product 400,000 tonnes per annum 1,000,000 tonnes per annum ZBS, ZOH, ZBC, ZrO2 6,000tpa US$33.0M* 15,000tpa US$
Slide 26: DZP Strategic Significance
DZP Strategic Significance For personal use only Majority of “downstream” zirconium products are derived from zircon, whose output is governed by ilmenite/rutile from mineral sands mining operations. China dominates downstream zirconium business at ~90% but feed is zircon. Niobium production dominat
Slide 27: Development pathway
Development pathway For personal use only ‐> 2009 2010 2011 2012 2013 2014 DZP Resource definition 2001 ‐ 2002 9 Flow sheet development 2002 9 Laboratory Zr – Nb 1999 – 2002 9 Pilot plant Zr – Nb 2002 9 Mine Plan & Schedulingg 2002 9 Plant Design & Engineering 2002 9 Laboratory Y & REE 2009 ‐ 9 Demo
Slide 28: Tomingley Project
For personal use only Tomingley Project Gold Definitive Feasibility Study Mintrex Pty Ltd Study Manager: Fiona Morgan Environmental Assessment R W Corkery & Co Pty Ltd
Slide 29: Tomingley Gold Project, NSW
Tomingley Gold Project, NSW For personal use only ALKANE RESOURCES: 100% • Three deposits under conceptual development: – Caloma (3 86Mt @ 1 (3.86Mt 1.76g/t 76g/t Au) – Wyoming One (6.59Mt @ 1.86g/t Au) – Wyoming Three (0.84Mt @ 1.75g/t Au) 947 AC, RC and core holes totalling 109,114 metres • Total
Slide 30: TGP Financials
TGP Financials For personal use only PRODUCTION OUTCOMES BASE CASE EXPANDED CASE Mine Life 7 Years 8 ‐ 10 Years Throughput Open Pit 5.9 Million tonnes 1.5 million tonnes Underground 0.7 million tonnes 0.5 Million tonnes Production 370,000oz 150,000oz Method conventional CIL circuit conventional CIL
Slide 31: Advanced Exploration: Gold ODEJV - McPhillamys
For personal use only Advanced Exploration Gold ODEJV ‐ McPhillamys Newmont Australia Limited (NAL) Subsidiary of US based Newmont Mining Corporation NAL are the Managers and Operators
Slide 32: ODEJV
ODEJV For personal use only ORANGE DISTRICT EXPLORATION JOINT VENTURE (ODEJV) Gold, Copper – Orange, NSW | Alkane Resources: 49%, Newmont Australia: 51% TWO FOCUS AREAS: MOLONG • Molong Carlin & Ridgeway‐type – targeting copper‐gold porphyry‐style gold porphyry targets mineralisation (Ridgeway‐type)
Slide 33: ODEJV Moorilda | McPhillamys
ODEJV Moorilda | McPhillamys For personal use only INITIAL RESOURCES • Indicated + Inferred +0.3g/t gold 92 Mt @ 1.00g/t Au 0.07% Cu 2.96 Moz Au & 60,000t Cu • Indicated + Inferred +0.5g/t gold 61 Mt @ 1.32g/t Au 0.08% Cu 2.57 Moz Au & 48,000t Cu • Mineralisation open at depth Deep drilling in progr
Slide 34: Project Development Pipeline
Project Development Pipeline For personal use only 2010 2011 2012 2013 2014 TOMINGLEY GOLD D fi iti FFeasibility Definitive ibilit St Study d (DFS) Environmental Assessment / DC Project Financing @ $A90m Construction Production DUBBO ZIRCONIA Definitive Feasibility Study (DFS) Environmental Assessme
Slide 35: …a perfect fit
For personal use only …a perfect fit
Slide 36: 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