Alara Resources Limited · ASX:AUQ
Alara Resources — Investor Presentation (February 2013)
29 slides from Alara Resources's investor presentation, Feb 4, 2013
Slide 1: ASX/Media Release: Investor Presentation
Alara Resources Limited Telephone | +61 8 9214 9787 A.B.N. 27 122 892 719 Facsimile | +61 8 9322 1515 Level 14, The Forrest Centre Web | www.alararesources.com 221 St Georges Terrace Email | info@alararesources.com Perth Western Australia 6000 ASX/MEDIA RELEASE For personal use only 4 February 2013
Slide 2: Alara Resources Limited Investor Presentation February 2013
Alara Resources Limited For personal use only Investor Presentation February 2013 ASX: AUQ www.alararesources.com www.alararesources.com
Slide 3: Company Profile
Company Profile For personal use only Board of Directors Company Data Ian Williams AO ASX Code AUQ Chairman Market Capital (31 January 2013) $35M 40+ years of mining industry experience, including Hamersley Iron, Rio Tinto, Century Zinc and Pasminco Issued Capital Awarded Order of Australia for serv
Slide 4: Key Projects Summary
Key Projects Summary For personal use only Alara Resources Limited (ASX:AUQ) is an Australian-based mineral exploration and development company with a portfolio of projects in Saudi Arabia and Oman. With a strong pipeline of advanced and early stage projects, Alara is establishing itself as a Base a
Slide 5: Project Locations
Project Locations For personal use only Khnaiguiyah (50%) Washihi (75% Earn In) Zinc-Copper, Saudi Arabia Copper-Gold, Oman Khnaiguiyah & Marjan Washihi & Daris Projects Projects (Saudi Arabia) (Oman) Perth Marjan (50%) Daris (50%) Zinc-Gold-Silver, Saudi Arabia Copper-Gold, Oman © Alara Resources L
Slide 6: Saudi Arabia
Saudi Arabia For personal use only © Alara Resources Limited www.alararesources.com Investor Update – February 2013 5
Slide 7: Khnaiguiyah Zinc-Copper Project
Khnaiguiyah Zinc-Copper Project For personal use only • All deposits remain open along strike and depth • Considerable upside potential along known and other shear zones yet to be explored • Campaign mining and processing of distinct zinc, zinc-copper and copper ‘domains’ • Standard processing: – Cr
Slide 8: Khnaiguiyah DFS Update
Khnaiguiyah DFS Update For personal use only DFS is nearing completion • Compilation of final DFS report with cashflow and NPV modelling expected late Q1 2013 • Annual mine scheduling completed; quarterly mine schedule February 2013 • Capital cost estimate US$225 million plus US$32 million in contin
Slide 9: DFS Update – Mining & Milling
DFS Update – Mining & Milling For personal use only Mining is expected to be completed in 9 years. During this period, 18Mt of material will be processed and 10Mt of lower grade will be stockpiled. Processing from years 10 to 14 will be from the stockpiles at 2Mtpa. Mining Total • Mined & Processed
Slide 10: DFS Update – Production & Costs
DFS Update – Production & Costs For personal use only Production Total • Mine life 14 years • Average annual production first 4 years (Zn) 90ktpa • Average annual production first 4 years (Cu) 6.25ktpa • Average annual production first 7 years (Zn) 82.5ktpa • Average annual production first 7 years
Slide 11: Expected Production Output
Expected Production Output For personal use only 140 Zn production (kt) Cu production (kt) 120 100 80 60 40 20 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 © Alara Resources Limited www.alararesources.com Investor Update – February 2013 10
Slide 12: Zinc Price Forecasts
Zinc Price Forecasts For personal use only Current Price Khnaiguiyah Targeting production of 72,000t to 120,000t zinc as concentrate © Alara Resources Limited www.alararesources.com Investor Update – February 2013 11
Slide 13: DFS - Capex Summary
DFS - Capex Summary For personal use only • Total Capex including contingencies of US$257M • Capex based on a contracting strategy and fixed lump sum prices • Mobile mining equipment is proposed to be leased • Tender documents were provided to a number of international groups in September 2012 • Ten
Slide 14: Funding
Funding For personal use only • Saudi Arabia Industrial Development Fund (SIDF) provides loans up to 75% for industrial and mining development in Saudi Arabia in approved areas within the Kingdom • US$1.8 billion advanced in 2010, including financing of Al Masane Copper-Zinc Project • Over US$23 bil
Slide 15: Timetable
Timetable For personal use only 2011 2012 2013 2014 May May May Aug Aug Aug Nov Nov Nov Nov Sep Sep Sep Dec Dec Dec Dec Mar Mar Mar Mar Feb Jun Feb Jun Feb Jun Feb Apr Apr Apr Apr Jan Jan Jan Jan Oct Oct Oct Oct Jul Jul Jul Finalise formal JV agreements Mining Licence granted to project* E
Slide 16: Management Team
Management Team For personal use only Shanker Madan – Managing Director 35+ years of mining industry experience, including BHP, Rio Tinto and Hamersley Iron. Justin Richard – Country Manager, Saudi Arabia 20+ years of experience, including Corporate Counsel and head of legal for UGL Limited’s resour
Slide 17: Site Layout
Site Layout For personal use only Processing Plant The processing plant Co-Disposal Facility will be located between Mineralised Zones 2 and 3. K2 Pit Accommodation K1 Pit The accommodation Low Grade camp is being Stockpile Pad designed to house up to 500 people (including families) Processing Plant
Slide 18: Mine Operations
Mine Operations For personal use only © Alara Resources Limited www.alararesources.com Investor Update – February 2013 17
Slide 19: Conceptual Site Model
Conceptual Site Model For personal use only © Alara Resources Limited www.alararesources.com Investor Update – February 2013 18
Slide 20: Plant Flow Sheet
Plant Flow Sheet For personal use only © Alara Resources Limited www.alararesources.com Investor Update – February 2013 19
Slide 21: Drill Hole Locations
Drill Hole Locations For personal use only Total drilling: 71,816m in 622 drill holes Zone 1: 8,245m in 88 drill holes (50m x 50m) Pit size 650m x 300m Zone 2: 25,839m in 245 drill holes (25m x 50m) Pit size 1,300m x 500m Zone 3: 33,698m in 263 drill holes (12.5 - 25m x 25 - 50m) Pit size 900 x 600m
Slide 22: Khnaiguiyah Zone – Section
Khnaiguiyah Zone 2 – Section 11 For personal use only © Alara Resources Limited www.alararesources.com Investor Update – February 2013 21
Slide 23: JORC Resource Statement
JORC Resource Statement For personal use only The Khnaiguiyah deposit comprises four ore bodies/mineralised zones located within one to two kilometres from a central area and approximately three kilometres from each other. The mineralisation in Zones 1, 2, 3 and 4 is distributed as three distinct ‘D
Slide 24: Oman
Oman For personal use only © Alara Resources Limited www.alararesources.com Investor Update – February 2013 23
Slide 25: Washihi Copper-Gold Project
Washihi Copper-Gold Project For personal use only The Washihi Copper-Gold Project is located approximately 100km south-southeast of Alara’s Daris Copper-Gold Project and adjacent to a high quality bitumen road. Initial JORC Resource estimate1: • 6.9Mt Inferred @ 0.76% Cu and 0.16g/t Au • 2.1Mt Indic
Slide 26: Conclusions
Conclusions For personal use only • Team – in place and highly experienced • Saudi Government – supportive, mining licence and environmental approvals received • Long life, Low cost – 14 year mine life, strong margins • Attractive Payback – higher production and lower costs in early years • Resource
Slide 27: Pipeline Summary
Pipeline Summary For personal use only Design / Exploration Feasibility Production Construction JORC Measured and Indicated Resource Saudi Arabia: Khnaiguiyah Zinc, Copper (Alara 50%) • 25.32 million tonnes @ 4.03% Zn & 0.17% Cu; • DFS completion expected in Q1 2013. Plus: • +71,000m drilling comple
Slide 28: JORC Code Competent Person Statements
JORC Code Competent Person Statements For personal use only The information in this presentation that relates to Zinc and Copper Mineral Resources within Mineralised Zones 1, 2 and 4 in relation to the Khnaiguiyah Project (Saudi Arabia) is based on information compiled by Mr Ravindra Sharma, who is
Slide 29: Alara Resources Limited – Contact and Disclaimer
Alara Resources Limited For personal use only ABN: 27 122 892 719 ASX Code: AUQ Level 14, The Forrest Centre 221 St Georges Terrace Perth, Western Australia 6000 Telephone: +61 8 9214 9787 Facsimile: +61 8 9322 1515 info@alararesources.com www.alararesources.com DISCLAIMER This presentation contains
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