Alkane Resources Ltd · ASX:ALK
Alkane Resources — Sydney Mining Club (July 2014)
24 slides from Alkane Resources's conference presentation, Jul 3, 2014
Slide 1: Sydney Mining Club – Alkane Resources
ALKANE RESOURCES LTD For personal use only Sydney Mining Club Gold producer with world class Dubbo Zirconia Project 3 July 2014
Slide 2: Corporate Profile
Corporate Profile For personal use only • Listed on ASX since 1969, also listed on OTCQX (US) • ~6,300 shareholders • Multi commodity explorer, miner and developer focused on Central West of NSW, Australia • Active in region for more than 20 years • Developed Peak Hill Gold Mine in 1996, operated to
Slide 3: Financial
Financial For personal use only Financial Equity Shares – 412,639,000 Market Capitalisation – A$110M (30 June 2014) Cash & Investments – A$18M (31 March 2014) Debt – nil Share turnover – ~0.2M / day current 12 Month Low/High – A$0.25/$0.59 Top 20 – 57% As at 31 March 2014 Codes – ALK
Slide 4: Tomingley Gold Operations
Tomingley Gold Operations Resource – 921,000oz of gold (less mined to date) For personal use only • • 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 •
Slide 5: 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 Wyoming Two and Three underground McLeans Caloma Two – Geological model 5
Slide 6: TGO Site Overview
For personal use only TGO Site Overview 6
Slide 7: Dubbo Zirconia Project
Dubbo Zirconia Project For personal use only • A very large polymetallic resource of the metals zirconium (hafnium), niobium (tantalum), yttrium and rare earths • Important and strategic metal mix - 25% of rare earth output is in “heavy” group • Reserve supports 35 year mine life at 1 million tonne
Slide 8: DZP Process Flow Sheet
DZP Process Flow Sheet • Simple open cut mining operation For personal use only • Crushing and grinding • Sulphuric acid, roast, leach whole of ore • Solvent extraction, separation & refining Shin-Etsu Agreement • Except for rare earths, the process produces a suite of products for direct consumptio
Slide 9: DZP Demonstration Pilot Plant
DZP Demonstration Pilot Plant For personal use only Y and HREE refining and recovery DPP Filtration, PLS, SX, Zr and Nb recovery Zirconium refining and precipitation Reverse osmosis and water recycle © Operating at ANSTO since 2008 9
Slide 10: Zirconium Industry
Zirconium Industry Zircon Demand by End Use For personal use only (2013 ~ 1 million tonnes) Zirconium Chemicals Output Other 3% Baddeleyite 3% ZOC Fused 26% unstabilised Foundry zirconia 12% 37% Fused Chemical stabilised Refractory Zirconia zirconia 21% 17% Ceramics 13% 47% Chemicals 21% DZP target
Slide 11: Rare Earth Industry
Rare Earth Industry For personal use only REE DEMAND 2017 Other Catalysts • Total REE consumption 2013 115,000t 8% 18% with annual growth estimated at 5- Ceramics 10% to be 153,000t in 2017 5% • Global market US$3-5B Glass 6% • China produced about 90% of world Phosphors supply in 2013 and consumed
Slide 12: Niobium Industry
Niobium Industry Current use of ferro-niobium For personal use only 13% 29% Structural 10% Pipe Auto Stainless Other 24% 24% • 90% of Nb used in standard grade ferro-niobium for the production of high strength low alloy (HSLA) steels • Nb HSLA steels are primarily consumed in structural and piping,
Slide 13: Chinese Export Taxes & Controls
Chinese Export Taxes & Controls WTO Challenge to Chinese Export Taxes and Quotas?? For personal use only 1. China is intent upon producing the value added product rather than exporting the raw materials 2. As a result China’s consumption of REs will rise from 65% to ~80% by 2020 3. If the export tax
Slide 14: Zirconium Issues
Zirconium Issues For personal use only 97% of all zirconium chemicals / fused zirconia are derived from zircon • Availability of premium zircon for fused zirconia - will require ~160-180,000tpa - low Al2O3 with minimal particle size < 45 micron - availability of zircon with <300 ppm U+Th • Consolida
Slide 15: Product Applications
Product Applications For personal use only Zirconium Materials: • Electronics, ceramics, glass, refractories, chemicals, metal, catalysts Rare Earth Materials: • Electronics, magnets, ceramics, glass, metal alloys, phosphors, catalysts Niobium Materials: • Special steels, alloys, capacitors, g
Slide 16: DZP Estimated Product Output @ 1Mtpa
DZP Estimated Product Output @ 1Mtpa 100% 1,309t For personal use only 5% 90% 95% yttrium, dysprosium, 20% 4,665t 30% terbium 80% 28.5% of revenue 8% 1,967t 70% 90% neodymium, 60% 24% praseodymium 21.6% of revenue 50% 15,827t 40% 16% 67% 30% 20% 31% 10% 0% Production 23,768t* Revenue A$450 - 500Mpa*
Slide 17: Product Value Enhancements - Offtake
Product Value Enhancements - Offtake For personal use only Continuing Product Development for Increased Return • Rare Earths: • MOU with Shin-Etsu Chemical to produce suite of separated rare earth oxides from LREE and HREE chloride concentrates / commercialisation of toll treatment off-take agreemen
Slide 18: Observations
Observations For personal use only [Shin-Etsu has a market cap of US$25 billion] DZP high purity REE chemical concentrate DZP yttria stabilised zirconia microspheres “Reports of the demise of these industries have been greatly exaggerated” (Apologies to Mark Twain) © 18
Slide 19: DZP Funding Strategy
DZP Funding Strategy For personal use only Total Project Capex of $996m Based on April 2013 DFS to +/- 17% Includes $166m contingency Includes current FEED program to achieve BFS standard @ +/- 10% Targeted funding sources: • Government Assistance Programs/ECA style funding • Commercial Ba
Slide 20: DZP Major Milestones
DZP Major Milestones For personal use only Major Milestones 2014 2015 2016 2017 Finalise Off-take agreements Project Approval Process ? Project Financing Program Front End Engineering Design (FEED) CONSTRUCTION PRODUCTION Estimates of times are indicative only and are subject to change. Alkane reser
Slide 21: 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) o 41m @ 1.15g/t gold and 1.24% copper o 8m @ 0.34g/t go
Slide 22: 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 23: DZP Resource & Reserves
DZP Resource & Reserves 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 0.14 0
Slide 24: Resource & Reserves: Tomingley
Resource & Reserves: Tomingley Tomingley (TGP) – Mineral Resources For personal use only DEPOSIT MEASURED INDICATED INFERRED TOTAL Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade Ounces (Mt) (g/t) Au (Mt) (g/t) Au (Mt) (g/t) Au (Mt) (g/t) Au Wyoming One 2 2.32 2.2 0.89 2.2 3.12 1.7 6.32 1.9