Slide 1: Presentation to Mining NSW Conference (ASX cover letter)
R ES O U RCES L TD AB N 3 5 0 0 0 6 8 9 2 1 6 For personal use only 2 September 2010 Manager Announcements Company Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION Attached is a copy of a presentation to the Mining NSW Conference being held in Orange, New Sout
Slide 2: Alkane's Exploration and Development Program in the Central West of NSW
Mining NSW Conference For personal use only Orange 2 September 2010 Alkane’ s Exploration and Development Program in the Central West of NSW Corporate snapshot Shareholder profile* Exchanges ASX: ALK Share Price (31 August 2010) A$0.46 Shares 249m Fully Diluted Market Cap ~A$110m Cash (at 30 June 20
Slide 3: 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 4: 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 is limiting the export of raw rare earths materials • China currently produces 95% of world Rare metals REE output • Brazil produces 90% of world niobium Lig
Slide 5: 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 6: DZP Demonstration Pilot Plant
DZP Demonstration Pilot Plant For personal use only Zirconium Applications
Slide 7: Zirconium Chemicals
Zirconium Chemicals For personal use only Current Zirconia, Zirconium Chemical Uses 2015 Estimated 150,000 tonnes with industry growth rate of 4.5%pa High growth areas: Advanced ceramics and catalysts 13.0%pa Ceramic pigments 8.0%pa Zirconium metal for nuclear applications ? Products range from US$4
Slide 8: 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$35 - 40/kg Long term expected to be in US$25 - $35/kg Sources: IAMGOLD / TZMI REE Appli
Slide 9: Rare Earth Consumption and DZP Product Output
Rare Earth Consumption For personal use only Light Rare Earth DZP Average as REOs US$10/kg Q1 2010 US$12/kg Q2 2010 US$16/kg July 2010 US$28/kg 9 August 2010 US$40/kg 23 August 2010 Yttrium Heavy REs DZP Average as REOs US$33/kg Q1 2010 US$42/kg Q2 2010 US$55/kg July 2010 US$64/kg 9 August 2010 US$6
Slide 10: Development pathway
Development pathway For personal use only ‐> 2009 2010 2011 2012 2013 DUBBO ZIRCONIA Resource definition 2001 ‐2002 9 PROJECT Flow sheet development 2002 9 Laboratory Zr – Nb 1999 ‐ 2002 9 Pilot plant Zr – Nb 2002 9 Mine Plan & Scheduling 2002 9 Plant Design & Engineering 2002 9 Laboratory Y & REE 2
Slide 11: 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 Tomingley Gold Project, NSW ALKANE RESOURCES: 100% • Three deposits under conceptual development: – Caloma (3.86Mt @ 1.76g/t Au) – W
Slide 12: TGP Infrastructure
TGP Infrastructure For personal use only • Infrastructure: – water => 45km pipeline – power (State Grid) => 20km 66Kv power line – roads => primary & secondary access • Skilled local workforce – population base of 150,000 within 120km diameter area – No FIFO, no accommodation required • Capital cost
Slide 13: TGP Current Resource Expansion
TGP Current Resource Expansion For personal use only • Caloma Two: – 3,000m aircore with several +3.0g/t intercepts – Initial RC drilling of 13 holes – PE 645 15m @ 4.27g/t Au – PE 654 6m @ 8.07g/t Au – PE 658 11m @ 3.85g/t Au – PE 659 15m @ 2.18g/t Au and 3m @ 11.05g/t Au – East – west, steep north
Slide 14: TGP Economics
TGP Economics For personal use only PRODUCTION OUTCOMES BASE CASE EXPANDED CASE Mine Life 7 Years 8 ‐ 10 Years Throughput Open Pit 6.0 Million tonnes 1.0 million tonnes Underground 0.6 million tonnes 1.0 Million tonnes Production 400,000oz 150,000oz Method conventional CIL circuit conventional CIL c
Slide 15: ODEJV Moorilda | McPhillamys
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 16: ODEJV Moorilda Regional Targets
ODEJV Moorilda Regional Targets For personal use only MULTIPLE TARGET AREAS: • Exploration – Detailed regional aeromagnetic survey – Regional Induced Polarisation – Regional gravity – Regional soil sampling – Detailed geological mapping – Specific aircore, RC and limited core drilling • Drill result
Slide 17: Project Development Pipeline
Project Development Pipeline For personal use only 2010 2011 2012 2013 TOMINGLEY GOLD Definitive Feasibility Study (DFS) Environmental Assessment / DA Project Financing @ $A90m Construction Production DUBBO ZIRCONIA Definitive Feasibility Study (DFS) Environmental Assessment / DA Project Financing @
Slide 18: 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