Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources NL — Investor Presentation (July 2006)
28 slides from Arafura Rare Earths's investor presentation, Jul 12, 2006
Slide 1: Alistair J Stephens, Managing Director, Arafura Resources NL
Alistair J Stephens Managing Director Arafura Resources NL July 2006 Arafura Resources for the future
Slide 2: Arafura to demerge uranium
Arafura to demerge uranium Arafura Resources NL “The Resource Developer” Feasibility Study into Nolans Bore A major resources of RE+P+ (U + Th) Joint Venture in Iron Ore (royalties), Nickel Gold New Uranium Company “Uranium exploration” Unconformity targets Surface low grade & large tonnage targets
Slide 3: Compliance Listing of Uranium Company
ABA Compliance Listing of Uranium Company ASX release to the proposed structure General meeting for shareholder approval Notice to options holders for participation Non renounceable rights issue to shareholders Compliance list in late 2006 “For current Arafura Shareholders only”
Slide 4: ARU to de-merge
Slide 5: Kilometres north of Alice Springs
135 kilometres north of Alice Springs 5km to gas 10km to road 60km to rail 15 kilometres to the Aileron road house
Slide 6: Uranium
Uranium ] _ Radionuclide |
Slide 7: Rare Earths - our future needs met now
Rare Earths - our future needs met now AN fe Electronics Cololir scree Owering Technology
Slide 8: Rare Earth Market Product Growth Potential
A . Rare Earth Market Product Growth Potential 200,000 [3 Other 180,000 {22 Phosphors 160,000 Ell Metal Alloys 140,000 3 Glass 120,000 400,000 4 Polishing 80,000 Batteries 60,000 @@ Magnets 40,000 [1 Catalysts 20,000 Supply 0 2006 2007 2008 2009 2010 ring Technology
Slide 9: Rare Earths market
A \ Rare Earths market Mi. Demand *« To grow on average at least 10% per annum « Demand driven by auto industry will outstrip supply « — Phosphors to deliver high growth, low volume but high value Supply « Limited to a few mines in China, Mt Weld Australia (soon) * Fragmented value add industry in C
Slide 10: Rare Earths — How do they compare?
A \ Rare Earths — How do they compare? Suerte Water US$0.30/tonne General essential uses None Bottled Water Have a guess! $/t Drinking None Coal US$50/tonne Electricity macloae Mt ne Iron ore US$70/tonne Structural Steel None Zinc US$3,000/tonne Corrosive metal Plastics, ceramics Copper US$7,000/ton
Slide 11: Product
Product Automotive exhaust catalysis PGM's (limited) Cerium US$2,500/tonne Glass additive None Lanthanum US$3,000/tonne NiMH batteries Lithium lon Fluid cracking catalyst none Neodymium US$10,000/tonne High power magnets None Europium US$350,000/tonne | Screen phosphors None Next mining Owering Tech
Slide 12: Product
Product Cerium Lanthanum Neodymium Europium outlook flat/back strong v strong v strong current US$/kg 2.5 3.00 10.00 300.00 post 2010 US$/kg 2.00 +5.00 +15.00 +500.00
Slide 13: Nolans Bore multi commodity deposit
ANCA Multi commodity deposit Rare Earths, Phosphate, Uranium 18.6 mt resource 3.1% REO 14% phosphate 0.47 Ib/t uranium 577,000 tonnes REO 2.6mt phosphate 8.7m lbs uranium oxide Resource has extensive upside potential Process design Specific flowchart design developed from current technology
Slide 14: Resource classification
classification MT REO% REO(kt) P,0;% U,O,|b/t High grade 3.9 4.4 174 18.3 0.70 Medium grade 6.6 2.4 158 11.4 0.37 Total Indicated 10.5 3.1 332 13.8 0.50 Total Inferred 8.1 3.0 245 14.3 0.43 TOTAL 18.6 3.1 577 14.0 0.47
Slide 15: Nolans Bore Prospect
¥ UK a i we of 1 [WEST ZONE Recent [1 wisame im ae WOOD eters preston scan agetin sere Tia, Breage ABAF UA, RESOURCES. Bi. [SON and 208 sting ‘Surat cme - i 2095) Pt ee 7 ‘Gh Chee 48 tn 5 febtind Ginantienis 8B cewnei a2 wy 86 -resvhegeboag Aidonon: ELLebesT HOLANS BORE PROSPECT PAB ~ Mugune zee Owe
Slide 16: Resource classification cross section
e classification ALAR UY er errrseey 38 aDOME. WEST NBRCO39 NBRDO21 NBRCO20 Envelope of Apatite Zone “¥ _Dalhole with Mineralsed intercept | Minaraisation interval 1.0% REE Cutoff NBRCOM 18 900ME EAST. NBRDOSE: OH Ber EOH 160.6m 0 40m, ARAFURA RESOURCES NL NOLANS BORE PROSPECT CROSS SECTION e e g ra
Slide 17: Production assumptions
ion assumptions Assume first 20 years mine life at 250,000 tpa ore REO P,0, U,0, Feed grade 4.5% 18.5% 0.7 Ib/t Metal tonnes 11,250 t 45,000 t 385,800 Ibs Recovery 80% 90% 70% Recovered tpa 9,000 40,000 120 52,000* * As chemical grade phosphoric acid H,P,0, Recoveries for all products are indicative
Slide 18: Production revenue
B du ion Revenue REO P.O, Recovered tpa 9,000 52,000° AUD$/t product 7,000 500” Rev AUD$pa $63m $44m Value $/t ore $252 $176 As chemical grade phosphoric acid H,P,0, ** delivered to Aust coastline, AUS:US ex 0.75 all products all cases “* US$30/b. U303 120 40°" $7.5m $30
Slide 19: Product revenue split
ALAPFURA er errrseey Uranium, 7.5, 7% Ce, 8.5, 13% Eu, 14, 22% Phosphoric - . , 44, 38% _ S other5, 10, 16% Nd, 25, 40% Product, A$ rev, %Rev Resources fol
Slide 20: Nolans Bore — Process overview
“Mining AN Nolans Bore — Process overview Mine 65% mass Stream 35% mass ‘Soluble 40% P.O, 12% REO Heavy metal extraction — Chemicals | Le Phosphate Chemicals concentrates _ ring Technology
Slide 21: Nolans Bore - mining
A Nolans Bore - mining 6 3-4 months as a campaign 10-20 people on contract 6 Shallow open cut, with negligible waste & Approx 500,000 tonnes of material per annum & Radiation Management controllable & Low risk, very safe ering Technology
Slide 22: Nolans Bore - processing
A Nolans Bore - processing & 40 people — year round Crushing and grinding - 250,000 tpa Leaching with various acids & Precipitation stages S Solvent extraction and ion exchange stages Waste management and reagent recycle & Radiation Management controllable ering Technology
Slide 23: Nolans Bore - development stages
A Nolans Bore - development stages Environmental studies Metallurgical testing and pilot plant Marketing negotiations Engineering design Government and regulatory approvals Construction Production ring Technology
Slide 24: Development Timeline
ALAPU RA wehugmees ue EHS NOI, PER, EIS Metallurgy li Metallurgy It] Metallurgy IV Pilot plant Demo plant? Marketing Design Construction Operation Approvals 4 Development Timeline aa
Slide 25: Bulk mining low strip open pit
Boling a tessures for | ehelon 6 open pit | 2 year trie tte roninn, ow stip at melons | | debi to eouiy = nooverburion | | fatlo to optinize “Commercial | _ in preperation. | Resty Grant | Grant
Slide 26: Nolans Bore - benefits
™% Nolans Bore - benefits Proximity to existing infrastructure road, rail, gas, port, Alice Springs Low risk, low cost mining Multiple revenue streams High Value products High growth markets ring Technology
Slide 27: Nolans Bore - risks and challenges
A Nolans Bore - risks and challenges ¢ Royalty regime NT ¢ Environmental approval and bonding ¢ Indigenous approvals processes ¢ Government and regulatory approvals Federal and Territory e Remoteness from chemical suppliers ° Highly specialised skilled workforce ering Technology
Slide 28: Arafura Resources NL
Arafura Resources NL the resource developer Arafura Resources for the future
Arafura Resources NL — Investor Presentation (July 2006) on 6ix