Slide 1: ASX cover letter - updated corporate presentation
RESOURCES L TD ABN 35 000 689 216 For personal use only 10 October 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 also be
Slide 2: Corporate Presentation October 2011
For personal use only Corporate C t Presentation P t ti October 2011
Slide 3: Corporate snapshot
Corporate snapshot For personal use only Shareholder profile* Exchanges ASX: ALK OTCQX: ANLKY Share Price (7 October2011) A$1.16 Shares 269m Fully Diluted Market Cap ~A312m C h (at Cash ( t 30 JJune 2011) ~A$18 ~A$18m No debt Top 20 ~60% *at 30 Sept 2011 Abbotsleigh (Gandel Metals) 26% 12 Month High
Slide 4: Location and Business Strategy
Location and Business Strategy For personal use only Multi commodity explorer and miner, focussed in the Central West of New South Wales Wales, Australia Region with substantial existing infrastructure Dubbo Zirconia Project – world class resource of zirconium hafnium, zirconium, hafnium niobium, ni
Slide 5: Dubbo Zirconia Project - Infrastructure
Dubbo Zirconia Project ‐ Infrastructure For personal use only Dubbo region pop 80,000 State power grid State gas grid M j mixed Major i d agriculture i lt Transport hub Substantial light industry
Slide 6: DZP Resources and Reserves
DZP Resources and Reserves For personal use only Measured Resource : 35.7 million tonnes grading 0 - 55 metres 1.94% 1 94% Zr02, 0.04%HfO 0 04%HfO2, 0.46% 0 46% Nb2O5 , 0.03% Ta2O5 , 0.14% Y2O3, 0.74% REO (0.9% TREO) Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres TOTAL : 7
Slide 7: DZP Flow Sheet
DZP Flow Sheet For personal use only Whole of ore sulphuric acid leach, solvent extraction separation and refining, with chemical precipitation to produce final products. Unique in the world today. today The process does not produce a mineral concentrate and does not concentrate the uranium and thor
Slide 8: Zirconium Applications
Zirconium Applications For personal use only
Slide 9: DZP Zircon - Zirconium Chemicals Pricing
DZP Zircon ‐ Zirconium Chemicals Pricing For personal use only PRODUCT ZrO2 Q4 2010 US$/T Q1 2011 US$/T Q2 2011 US$/T Zircon (producer/trader) 65% $900 ‐$1,150 $1,500 ‐$2,100 $1,700 ‐$2,750 (100% ZrO2 basis) 100% ($1,440 ‐ $1,840) ($2,400 ‐ $3,360) ($2,720 ‐ $4,400) ZOC ((zirconium i i oxychloride)
Slide 10: Zircon Supply Demand Price
Zircon Supply Demand Price For personal use only 20% shortfall by 2020 Zircon prices have escalated during 2010 and 2011 to >US$2,800/t Zircon price and supply will have a major impact on the cost and availability of zirconium chemicals zirconia chemicals, irconia and zirconium irconi m metal. metal
Slide 11: Niobium Applications
For personal use only Niobium Applications
Slide 12: Niobium Demand and Price
Niobium Demand and Price For personal use only Niobium 2010 (Ferro-niobium 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$40 - 45/kg Sources: IAMGOLD / TZMI
Slide 13: REE Applications
For personal use only REE Applications
Slide 14: Rare Earth Supply - Demand
Rare Earth Supply ‐ Demand For personal use only Will rare earth supply demand be in balance from 2015 with Lynas y and Molycorp producing? High g probability p y for LREE but not HREE The DZP has a 75% LREE - 25% HREE split which gives it a demand advantage Separated rare earth products Value 2010
Slide 15: DZP Rare Earth Pricing
DZP Rare Earth Pricing For personal use only Rare Earths Prices (US$/kg FOB China REO) Source: Metal Pages© Numbers have been rounded DZP Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Spot 5 Oct Light Rare Earth Distribution Average Average Average Average Average Lanthanum Oxide 19.51% $7.13 $25.75 $53.0
Slide 16: DZP Product Output and Revenues
Financial – DZP Product Output and Revenues For personal use only 1 million tonnes pa of ore processed Anticipated Production and Revenues Price / kg Product Price / kg used 1,000,000 tonnes per annum predicted ZBS, ZOH, ZOC, ZrO2 US$10 - 15 US$10.60 15,700tpa A$196M Nb -Ta conc / FeNb US$42 - 45 US
Slide 17: DZP DFS Financials
DZP DFS Financials For personal use only DUBBO ZIRCONIA PROJECT Financial Summary Project Capacity 400,000 tonnes pa 1,000,000 tonnes pa Capex – Plant1 $278M $543M Infrastructure + Owners $84M $165M SUB TOTAL $362M $708M EPCM $36M $43M Contingency $72M $142M TOTAL $470M $893M Revenue $189M $504M Ope
Slide 18: DZP Marketing Developments
DZP Marketing Developments For personal use only Three MOUs completed that should take all of the 1Mtpa zirconium output. Zi Zirconium i Ni bi Niobium LREE YHREE 100% 75% 50% 25% 0% Several other MOUs in discussion that will cover rare earth outputs and niobium production.
Slide 19: DZP Site Infrastructure
DZP Site Infrastructure For personal use only
Slide 20: DZP Development pathway
DZP 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 Continued product Pilot plant Zr – Nb 2002 9 development Mine Plan & Scheduling 2002 9 Plant Design & Engineering 2002 9
Slide 21: Tomingley Gold Project, NSW
Tomingley Gold Project, NSW For personal use only • Three deposits for initial development: – Caloma (3.86Mt @ 1.76g/t Au) – Wyoming One (6 59Mt @ 1 (6.59Mt 1.86g/t 86g/t Au) – Wyoming Three (0.84Mt @ 1.75g/t Au) Over 2,000 AC, RC and core holes totalling +200,000 metres • Totall current combined bi
Slide 22: 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 23: TGP Financials
TGP Financials For personal use only Financial Summary Based on initial 7.5 year open pit and underground operation producing 370,000 ounces Gold Price A$1,500 / oz A$1,600 / oz A$1,700 / oz A$1,800 / oz Revenue $554m $591m $629m $665m EBITDA* $167m $201m $225m $269m IRR 17.7% 25.1% 32.2% 39.4% NPV
Slide 24: ODEJV Newmont 51% - McPhillamys
ODEJV Newmont 51% ‐ 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 • Conceptual studie
Slide 25: Exploration 100% Alkane
Exploration 100% Alkane For personal use only E l ti Exploration 2010 ‐ 2011 Discoveries Bodangora Glen Hollow gold – copper 45m @ 0.91g/t Au 0.24% Cu; 21m @ 1.5g/t Au 0.41% Cu Wellington Galwadgere copper – gold 2Mt @ 1.0% Cu 0.3g/t Au – potential doubled by recent DDH Cudal Bowen Park gold – zinc
Slide 26: Alkane Operations Team
ALKANE OPERATIONS TEAM For personal use only
Slide 27: Project Development Pipeline
Project Development Pipeline For personal use only 2010 2011 2012 2013 2014 2015 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 Ass
Slide 28: ALKANE - The Future
ALKANE – The Future For personal use only The DZP is a long term project with strategic significance in the zirconium and h heavy rare earth th industries, i d ti and d can generate t substantial b t ti l cash h flows. fl Production costs are spread across the four metal outputs – zirconium, niobium
Slide 29: 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 30: TGP - Peak Hill Resource / Reserve Statements
These Mineral Resources are based upon information compiled by Mr Richard Lewis MAusIMM (Lewis Mineral Resource Consultants Pty Ltd) who is a competent person as defined in the 2004 Edition of the Australasian Code for R TGP – Peak Hill Resource / Reserve Statements For personal use only TGP – Miner
Slide 31: DZP - Galwadgere Resource / Reserve Statements
DZP – Galwadgere Resource / Reserve Statements For personal use only Dubbo Zirconia Project – Mineral Resources Toongi Tonnage ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 REO U3O8 Deposit (Mt) (%) (%) (%) (%) (%) (%) (%) Measured 35.70 1.96 0.04 0.46 0.03 0.14 0.75 0.014 Inferred 37.50 1.96 0.04 0.46 0.03 0.14 0.75
Slide 32: McPhillamys Resource Statement
McPhillamys Resource Statement For personal use only Moorilda – McPhillamys – Mineral Resources DEPOSIT INDICATED INFERRED TOTAL McPhillamys Tonnage Grade Grade Tonnage Grade Grade Tonnage Grade Grade k Ounces tonnes 0.3g/t Au cut-off (t) (g/t) % Cu (t) (g/t) % Cu (t) (g/t) % Cu gold copper Inner Or