Alkane Resources Ltd · ASX:ALK
Alkane Resources — Alkane Exploration — Excellence in Mining and Exploration conference 2006
33 slides from Alkane Resources's conference presentation, Oct 11, 2006
Slide 1: ASX cover letter: Presentation to Excellence in Mining and Exploration
‘A /- | ALKANE EXPLORATION LTD ‘em 2 A.B.N 35 000 689 216 wns: 11 October 2006 Manager Announcements Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION Attached is a copy of Alkane’s presentation to the Excellence in Mining and Expl
Slide 2: Excellence in Mining and Exploration, Sydney, October 2006
sen jong Excellence in Mining and Exploration Sydney, October 2006 \ Onc cu mon TOR En OC RUE RUOIMInIIE Ee oli ae
Slide 3: Highlights
HIGHLIGHTS « Pre-feasibility study on Wyoming gold project gives encouraging results Project to proceed to definitive feasibility study * Significant deep drill intercepts at Wyoming incl 66m @ 19.49g/t Au * $3.28 million Commercial Ready grant from Ausindustry for Dubbo Zirconia Project - work prog
Slide 4: Corporate Profile
CORPORATE PROFILE 1 ASX Code ALK (listed since 1969) Issued Capital 190m shares (200m after rights issue) Cash (31/07/06) A$4.5m (+A$6m after rights issue) Trading Range (1 yr) A$0.13 - $0.29.5 Trading Volume (1 yr) 10.2m/mth average Current Market Cap A$35m No Debt
Slide 5: Alkane Management
John Duniop lan Chaimers Tony Lethiean lan Gandel lan Cornelius ALKANE MANAGEMENT Chairman Managing Director Non-executive director Non-executive director Non-executive director Mining Engineer with 36 years in mining operations Geologist with 36 yrs experience in mining, exploration and development
Slide 6: _ shining
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Slide 7: Central West NSW Projects
Central West NSW Projects ew South Wales Peospect locations
Slide 8: Tomingley Gold Project Regional Outcrop Geology
oe mL oo a _ — —S—ti‘— | aul Tomingley Gold Project Regional Outcrop Geology = = — = * ae Hervey Group : Myalig United Duiladerry Rhyolite Yeoval Granite Forbes Group ELSGre oe Mungincoble Chert ; Lal : oo Cotton Formation : _ paek Lit : 4 Mine Site Eo Goonumbtia (Mingelo) Voicanics : coo LLKANE
Slide 9: Tomingley Gold Project Wyoming Geological Summary
Tomingley Gold Project Wyoming Geological Summary Pelitic Sediments Feidspar porphyry Volcaniclastic sediments Graphitic mudstone Voicaniclastic conglomerate Epidote altered volcanics Chiorite-talc schist Andesitic volcanics Mineralisation KANE | ERSaTS Wyoming Thre $8, 7000z Wyoming Two Wyoming One
Slide 10: Tomingley Gold Project — South View
Tomingley Gold Project — South View aint a ie ae Lo Zh. saad
Slide 11: Wyoming One Geological Interpretation
Tomingley Gold Project Wyoming One Geological Interpretation Pelitic Sediments , Feldspar porphyry Volcaniciastic sediments Graphitic mudstone Volcaniciastic conglomerate Epidote altered volcanics Chiorite-taic schist Andesitic volcanics
Slide 12: Wyoming One North — South Section
Tomingley Gold Project Wyoming One North — South Section 614075mE oe Alluvium = Cotton Formation Feldspar porphyry eae Voicaniclastic sediments | Graphitic mudstone Co Volcaniciastic conglomerate i Epidote altered volcanics oe Chiorite-talc schist = Andesitic volcanics ie r acer
Slide 13: Wyoming One East - West Section
Tomingley Gold Project Wyoming One East - West Section 6393300mN Afluvium Cotton Formation eldspar porphyry Volcaniclastic sediments Graphitic mudstone Volcaniclastic conglomerate Epidote altered volcanics Chlorite-taic schist Andesitic volcanics
Slide 14: Resource Summary Wyoming One and Three
TOMINGLEY GOLD PROJECT Resource Summary Wyoming One and Three Dec 2005 0.75g/t gold cut off Measured Indicated ..1.025 ge @ 2, Ggit go d Inferred TOTAL i iQ
Slide 15: Wyoming Proposed Pit Locations
Tomingley Gold Project Wyoming Proposed Pit Locations Base Case May 2006 Wyoming aie.
Slide 16: Wyoming Development Summary
TOMINGLEY GOLD PROJECT Wyoming Development Summary Definitive Feasibility Study prograrn to optimise open pits, generate detailed underground mine plan, optimise head grades and recoveries Models range from 500,000tpa open pits to produce 30-35,0000z pa to 1,000, 000tpa open pits to produce 60-70,00
Slide 17: Dubbo Zirconia Project Site and Infrastructure Location
DUBBO ZIRCONIA PROJECT Project Site and Infrastructure Location
Slide 18: Dubbo Zirconia Project Resources
DUBBO ZIRCONIA PROJECT RESOURCES Measured Resource : 35.7 million tonnes grading 0-55 metres 1.96% Zr0,, 0.04%HFfO,, 0.14% Y,0, 0.46% Nb,O,, 0.03% Ta,O, , 0.014% U,0, and 0.75% REO Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres TOTAL : 73.2 million tonnes
Slide 19: Dubbo Zirconia Project Process Flow Sheet
DUBBO ZIRCONIA PROJECT _PROCESS FLOW SHEET | CRUSHING & : “Leaching Repulping _ LEACHING - Solvent Extraction __ Neutralised : . £ : C oo / _ fib (fal | Resid : : | = Goncentrate = Concentrate Storage : Metlum Product = FinumProduel
Slide 20: Zirconium Chemicals Industry Structure and Market Entry Points
DUBBO ZIRCONIA PROJECT ZIRCON | BADDELEYITE ELECTRIC ARC FURNACE Zirconium Chemicals Industry Structure and CHEMICAL PROCESSING Market Entry Points — Current World Output « ie ~ 120,000t zircon sam Sean SEE Ge Por converts to Ea E Lea 95,000t of Zr chemicals ee f es and 13,000¢ Zr metal Products ran
Slide 21: Current Zirconia Uses
DUBBO ZIRCONIA PROJECT CURRENT ZIRCONIA USES 2005 Consumption 2010 Estimated High growth areas: 96,000 tonnes 126,000 tonnes with industry growth rate of 4.5%pa Advanced ceramics and catalysts 13.0%pa Ceramic pigments 8.0%pa Source: TZ Minerals International Dec 05
Slide 22: Why strategically significant? Current zircon uses
DUBBO ZIRCONIA PROJECT Why strategically significant? Other Foundry 2%, 14% Ceramics 50% CURRENT TV Glass ZIRCON 8% USE S Refractory 14% Source: Hluka Oct 05 KANE
Slide 23: Zircon Supply / Demand Outlook
DUBBO ZIRCONIA PROJECT Zircon Supply / Demand Outlook D _~ 2 1600 3 c S 1400 5 £ - 2 2 1200 wo S 3 © 1000 8 3 | _ ee = & 800 yy ma] Li ia i i | $ E 600 & GC 400 ~— _ w 2) a 5s 200 2 = Q a oe 4 > 3 CSS ween enreaonnnen ” a e2eogosccp Sooo fee rete RRRRRRARSRRRRRRRR wet Balance (RHS) om Supply — Deman
Slide 24: Niobium Industry Structure
DUBBO ZIRCONIA PROJECT Schematic Illustration of . . Metallurgical Niobium Industry _Structura steels —— . Stainless and heat Structure Pyroctiore i nl B suveratioys resistant steels Super conducting ‘magnets Columbite Tantalite Oxides Class Current World Output a ceramics * . AZLNG . Niobium . 35,0
Slide 25: Process Flow Sheet — Possible developments
DUBBO ZIRCONIA PROJECT Process Flow Sheet — Possible developments Primary Crasher Storage: ea Leaching Neaiped Aircauuen Brecort Uranium Nuclear power Niobium and tantalum for special alloys Zirconium and hafnium metal Nuclear and special alloys Bini aue { A Neutral ined iain & A) Precipitation Hee
Slide 26: Dubbo Zirconia Project Current Program
DUBBO ZIRCONIA PROJECT Current Program Ausindustry Commercial Ready Grant of A$3.29M on dollar for dollar basis to complete process optimisations, and construct and operate the Demonstration Pilot Plant. Total of about 27 months Laboratory program commenced at ANSTO (Lucas Heights) July 2006 with DP
Slide 27: Orange Area Regional Geology, Newmont Joint Venture
Orange Area Regional Geology Newmont Joint Venture ODEJV = Molong and Moorilda Carboniferous granites Situro-Devonian granites Siluro-Devonian sediments Ordovician monzonite and related intrusives Ordovician ultramafics Ordovician volcanics 550m: x Toom porphyry : 48m @ 0.3tgit Au 0.35 % Cu ae ie Es
Slide 28: Moorilda McPhillamys Geology and Prospects
Moorilda ODEJV McPhillamys Geology and Prospects LEANE McPhillamys Discovery 71m @ 1 68git Au 10m @ 4.080 Au 31m @ 1.64% zn ey Grows Green 49m @ 1.23g¢/ Au and 0.20% Cu 7m @ 2.85g) AU
Slide 29: McPhillamys Soil geochemistry with drill hole locations
Moorilda ODEJIV McPhillamys Soil geochemistry with drill hole locations " al 9 a i LKANE a2e2280 mN Letendeurs. TIS ae
Slide 30: McPhillamys Drill Section
Moorilda ODEIJV MePhillamys Drill Section 6292050mN ee a ane as FSET REAR *
Slide 31: Moorilda ODEJV — McPhillamys Prospect
Moorilda opEJv — McPhillamys Prospect | MePhillamys Hil LEANE
Slide 32: Wellington Bodangora Regional Geology, Galwadgere
Wellington Bodangora Regional Geology Galwadgere Indicated Res Open pitable resource 2.09Mt @ 0.99% Cu and 0.3g/t Au +20,000t Cu / +25,0000z Au High quality copper concentrate
Slide 33: Disclaimer
Disclaimer: This presentation contains certain forward looking statements and forecasts, including possible or assurned reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Alkane Exploration Ltd, industry growth or other trend projections. Su
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