Alkane Resources Ltd · ASX:ALK
Alkane Resources — Metal Events Rare Earths Conference (November 2013)
19 slides from Alkane Resources's conference presentation, Nov 13, 2013
Slide 1: Dubbo Zirconia Project
ALKANE RESOURCES LTD AUSTRALIAN ZIRCONIA LIMITED Dubbo Zirconia Project For personal use only NSW Australia An alternate and strategic long term supply of critical rare earths, zirconium and niobium
Slide 2: Corporate Snapshot
Corporate Snapshot For personal use only • Listed on ASX since 1969, also listed on OTCQX (US) • Market cap $150M • 6,100 shareholders (85% Australian) • Multi commodity explorer, miner and developer focused on Central West of NSW • Active in region for more than 20 years • Developed Peak Hill Gold
Slide 3: Dubbo Zirconia Project
Dubbo Zirconia Project • A very large polymetallic resource of the metals For personal use only zirconium (hafnium), niobium (tantalum), yttrium and rare earths • Important and strategic metal mix, including 25% heavy rare earths • Open pit life of at least 70 years at 1 million tonne ore production
Slide 4: Location
Location For personal use only Project close to existing infrastructure • Proposed project infrastructure • upgrade of 27km Obley Road to semi articulated truck & trailer standard • refurbishment/upgrade of Dubbo-Toongi section of railway • 30km gas pipeline in rail corridor • 132kV power line Geu
Slide 5: Geology, Resources & Reserves
Geology, Resources & Reserves For personal use only Resources Depth (m) Tonnes (Mt) Grade 1.94% Zr02, 0.04%HfO2, 0.46% Nb2O5 , 0.03% Measured 0-55 35.7 Ta2O5 , 0.14% Y2O3, 0.74% REO (0.9% TREO) Inferred 55-100 37.5 As above Total 0-100 73.2 As above Reserves 1.93% Zr02, 0.04%HfO2, 0.46% Nb2O5 , 0.03
Slide 6: Process Flow Sheet
Process Flow Sheet For personal use only • Simple open cut mining operation • Crushing and grinding • Sulphuric acid, roast, leach whole of ore • Solvent extraction, separation & refining © 6
Slide 7: Demonstration Pilot Plant
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 7
Slide 8: Process and Product Development
Process and Product Development Continuous process optimisation and product development through For personal use only operation of the demonstration pilot plant Development of high purity, variable grain size zirconia for multiple end use applications Operation of ceramics colours laboratory to
Slide 9: Product Output @ 1Mtpa
Product Output @ 1Mtpa For personal use only 100% 5% 1,309t 90% 20% 4,665t 95% yttrium, dysprosium, 30% 80% terbium 28.5% of total revenue 8% 1,967t 70% 60% 90% neodymium, 24% praseodymium 50% 21.6% of total revenue 15,827t 40% 16% 67% 30% 20% 31% 10% 0% Production 23,768t Revenue A$450 - 500Mpa ZrO
Slide 10: REE Industry
REE Industry For personal use only REE DEMAND 2016 Other Catalysts • Total REE consumption 2012 115,000t 12% 15% with annual growth estimated at 5- Ceramics 10% to be 162,000t in 2016 6% • China produces about 90% of world Glass 6% supply and consumed about 65%, Phosphors with Japan 15% and the US 1
Slide 11: Zirconium Industry
Zirconium Industry Zirconium Chemicals Output For personal use only (2011 – 194,000t ZrO2 basis CAGR 5-10% ) Increasing prices Increasing purity • Global market US$3-4B • Mid 2013 consumer zircon inventories running down • Market expected to move back into under supply 2015 - 2016 • Prices starting
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 pipe, bu
Slide 13: Pathway to Market
Pathway to Market For personal use only AZL MoU’s and Agreements to secure 100% of output Zirconium (Zr) • Leading chemical company to develop applications and markets in Asia for zirconia produced by DZP • European manufacturer/trading company to market DZP products in Europe and North America • Ce
Slide 14: Environment
Environment Alkane has a 25 year history of sustainable mine management For personal use only EIS lodged 28 June and addresses all environmental aspects Water • 70% recycle of process water currently achievable • Limited groundwater aquifers – minimal impact • Water secured from existing water licen
Slide 15: Commercial Plant 3D Model
Commercial Plant 3D Model For personal use only © Toongi Operations Plant 15
Slide 16: Financing Program
Financing Program For personal use only Advisors assisting with $1bn DZP financing package Sumitomo Mitsui Banking Corp Credit Suisse (Australia) Petra Capital Funding Sources Funding Uses Debt Funding Construction - Government Assistance/ECA Funding Capital Expenditure - Plant $396.8 M - Comm
Slide 17: Major Milestones
Major Milestones For personal use only Major Milestones 2013 2014 2015 2016 Environmental Impact Statement Project Approval Process Project Financing Program EPC / EPCM tender award Detailed design / Long lead orders CONSTRUCTION PRODUCTION © 17
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
Slide 19: 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
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