Slide 1: Gold producer with world class Dubbo Zirconia Project
For personal use only Gold producer with world class Dubbo Zirconia Project 14 May 2015
Slide 2: For personal use only
For personal use only © 2015 Alkane Resources Ltd 2
Slide 3: Corporate Snapshot
Corporate Snapshot For personal use only 6% 23% 414.2 Million Shares A$125M Market Cap • 13 May 2015 37% A$24.2M Cash/Investments 11% • 31 March 2015 A$ 0 Debt A$0.17/$0.40 23% • 12 Month Low/High ALK (ASX) ANLKY (OTCQX) Hedge Funds Retail & others Directors & Management Foreign Institution Domestic
Slide 4: Central West NSW
Central West NSW For personal use only Peak Hill Gold Mine 1996 - 2005 Tomingley Gold Operations Production commenced 2014 – cash flow Dubbo Zirconia Project Pre-construction Active in region for more than 30 years Successful ongoing exploration programs World-class strategic polymetallic developmen
Slide 5: Tomingley Gold Operations
Tomingley Gold Operations For personal use only • Resource – 830,000oz of gold (30 June 2014) • Construction CAPEX – A$116M • Mine Method – open cut & underground • Mine Life – 7.5 years (targeting 10+ years) • Processing plant throughput – 1.0Mtpa • 2.00g/t Au and 93% recovery standard CIL • Gold P
Slide 6: TGO Resource Expansion
TGO Resource Expansion For personal use only Additional Resource Potential Caloma Two open pit and underground Expand Wyoming One underground Caloma underground Myalls underground (historic 70,000oz) Wyoming Two and Three underground McLeans Caloma Two – Geological model © 2015 Alkane Resources Ltd
Slide 7: Dubbo Zirconia Project
Dubbo Zirconia Project For personal use only © 2015 Alkane Resources Ltd 7
Slide 8: Rare Earth Industry
Rare Earth Industry For personal use only REE Demand 2016 by Application • US$3-5B Global market Other Catalysts • 115,000t Annual Consumption 2013 8% 18% • 5-10% Annual growth estimates Ceramics 5% REE Demand 2013 by Country Glass 6% Phosphors Other 5% US 6% 14% Japan 15% China Polishing 65% 12% Ma
Slide 9: China's Rare Earths Industry
China’s Rare Earths Industry For personal use only Did the WTO case make any difference? China’s government actions to manage its rare earths industry. Regulation Consolidation Quotas Taxes Policies • Crackdown on • Rare earth • Export licences • Export taxes • Policies to Illegal mining – separatio
Slide 10: Zirconium Industry
Zirconium Industry For personal use only Zircon Demand by End Use (2013 ~ 1 million tonnes) Other 3% Foundry 12% Ceramics 47% Chemicals 21% Refractory 17% • Global market US$2-3B • 2014 consumer zircon inventories running down • Market expected to stabilise through 2015 - 2016 • CAGR anticipated at
Slide 11: Niobium Industry
Niobium Industry For personal use only 90% of Nb used in standard grade ferroniobium for the production of high strength low alloy (HSLA) steels. World production estimated at 80,000t Nb in 2012. CBMM in Brazil accounts for 85%. Global market US$3-4B. Price stability since 2008, including GFC. CAGR
Slide 12: Hafnium Industry
Hafnium Industry For personal use only Super Alloys- 73% of 2015 supply By-product from zirconium metal • Depends on nuclear industry Prices escalating through demand by aerospace industries 2014 into 2015 © 2015 Alkane Resources Ltd Source: Modified after Lipmann Walton & Co Ltd 2015 12
Slide 13: These products are everywhere..
These products are everywhere.. For personal use only Renewable energy Energy efficient lighting Auto - emissions Auto – fuel efficiency Health Electronics Smart technologies Aerospace © 2015 Alkane Resources Ltd 13
Slide 14: Geology and Resources
Geology and Resources For personal use only Trachyte lava or sub-volcanic intrusive Largely homogeneous ore body Ore mineralogy: • eudialyte (“like” Zr silicate +Y and HRE) • natroniobite (Nb-Ta) • bastnaesite (LRE) All readily soluble in sulphuric acid forms basis of recovery process © 2015 Alkane
Slide 15: Process Flowsheet
Process Flowsheet For personal use only Demonstration pilot plant for this circuit has been operating at ANSTO since 2008 © 2015 Alkane Resources Ltd 15
Slide 16: "New" Hafnium Recovery
“New” Hafnium Recovery For personal use only © 2015 Alkane Resources Ltd 16
Slide 17: Product Output
Product Output For personal use only Light Rare Earths chemical concentrate (99%% REO) 4,665 tpa (LREO units) Heavy rare earth chemical concentrate (95% REO) 1,309 tpa (HREO units) Zirconium as ZBC (carbonate) and Zirconia (99% ZrO2) 15,827tpa (ZrO2 units) Hafnium as HfO2 process being trialed – ass
Slide 18: Funding Strategy
Funding Strategy For personal use only Government Investment at Project Commercial Bank Equity Capital Assistance Programs Level Debt Markets (ALK) • ECA Style Funding • Strategic • Advisors: SMBC & • Advisors: Credit • Lead coordinator: Investment(s) Credit Suisse Suisse & Petra Sumitomo Mitsui • A
Slide 19: Timetable
Timetable For personal use only Project approval process currently at 23 months but is anticipated to be completed by June. The process has added about 12 months to the schedule overall. Estimates of times are indicative only and are subject to change. Alkane reserves the right to vary the timetable
Slide 20: Exploration
Exploration For personal use only • Bodangora gold‐copper prospect o Large monzonite intrusive complex with gold-copper mineralisation o Similarities to Newcrest’s Cadia-Ridgeway gold‐copper mine o Recent drill intercepts at new target (Kaiser) (ALK ASX 8 April 2014) o 41m @ 1.15g/t gold and 1.24% c
Slide 21: Conclusions
Conclusions For personal use only Internationally strategic DZP with supply of several critical metals from non-Chinese sources Diversified DZP output gives robust revenues, even at current Chinese domestic RE prices Full spectrum of rare earth magnet materials – neodymium, praseodymium, dysprosium
Slide 22: Disclaimer
Disclaimer For personal use only 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 tre
Slide 23: Resources and Reserves: DZP
Resources and Reserves: DZP For personal use only 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.
Slide 24: Resource & Reserves: TGO
Resource & Reserves: TGO For personal use only TOMINGLEY GOLD PROJECT MINERAL RESOURCES (as at 30 June 2014) MEASURED INDICATED INFERRED TOTAL Total Gold DEPOSIT Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade (Kt) (g/t Au) (Kt) (g/t Au) (Kt) (g/t Au) (Kt) (g/t Au) (Koz) Open Pittable Resour