Alkane Resources Ltd · ASX:ALK
Alkane Resources — TZMI Congress 2011 Asia in Focus
31 slides from Alkane Resources's conference presentation, Nov 11, 2011
Slide 1: ASX cover letter: Presentation – Dubbo Zirconia Project
RESOURCES L TD ABN 35 000 689 216 For personal use only 11 November 2011 Manager Announcements Company Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 Dear Sir, PRESENTATION – DUBBO ZIRCONIA PROJECT Attached is a copy of the Company’s presentation at the TZMI Congress 2011 “Asia in
Slide 2: Dubbo Zirconia Project
For personal use only Dubbo Zirconia Project NSW Australia An alternate source of zirconium, rare earth and niobium products
Slide 3: Location and Business Strategy
Location and Business Strategy For personal use only Multi commodity explorer and miner, focussed in the Central West of New South Wales Wales, Australia Region with substantial existing infrastructure Dubbo Zirconia Project – world class resource of zirconium hafnium, zirconium, hafnium niobium, ni
Slide 4: Corporate snapshot
Corporate snapshot For personal use only Shareholder profile* Exchanges ASX: ALK OTCQX: ANLKY Share Price (8 November2011) A$1.14 Shares 269m Fully Diluted Market Cap ~A300m C h (at Cash ( t 30 SSeptember t b 2011) ~A$13 ~A$13m No debt Top 20 ~60% *at 30 Sept 2011 Abbotsleigh (Gandel Metals) 26% 12
Slide 5: DZP Infrastructure
DZP Infrastructure For personal use only Dubbo region pop 80,000 State power grid State gas grid M j mixed Major i d agriculture i lt Transport hub Substantial light industry
Slide 6: DZP Geology
DZP Geology For personal use only 0 200 metres Jurassic aged trachyte intrusive V l Volcanic i pipe i open att depth d th
Slide 7: DZP Geology
DZP Geology For personal use only East-west cross section through centre of deposit Recent Grits SEDIMENTS Basalt Dykes TRACHYTE SEDIMENTS Siliceous Contact Niobium Zirconium Zone Horizontal Scale 0 100 m Rare earth grade identical distribution as the zirconium and niobium
Slide 8: DZP Western contact of deposit
DZP Western contact of deposit For personal use only Trachyte Sediments
Slide 9: DZP Ore Mineralogy
DZP Ore Mineralogy For personal use only Zirconium Zi i eudialyte di l t ZrSiO4 ± Ca, Ca YY, < 2μ m - 50μ m Heavy REs armstrongite HREE, H2O +?U Niobium/ NaNbO3 + Ta + ?Th natroniobite < 30μ m Tantalum also NbFeSiO4 calcian Ca(REE)(CO3)F basnaesite Rare Earths < 100μ m rare ancylite Sr(REE)(CO3)H2O
Slide 10: DZP Resources and Reserves
DZP Resources and Reserves For personal use only Measured Resource : 35.7 million tonnes grading 0 - 55 metres 1.94% 1 94% Zr02, 0.04%HfO 0 04%HfO2, 0.46% 0 46% Nb2O5 , 0.03% Ta2O5 , 0.14% Y2O3, 0.74% REO (0.9% TREO) Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres TOTAL : 7
Slide 11: DZP Metallurgy
DZP Metallurgy For personal use only Process development p work begang in 1999 and the basic flow sheet trialed at mini-pilot plant stage in 2001 - 2002 • Preliminary test work on HCl, HF, NaOH leaching, and H2SO4 roasting and leaching • Preliminary flotation to assess potential for pre-concentratio
Slide 12: DZP Flow Sheet
DZP Flow Sheet For personal use only Flow sheet has been tested by demonstration pilot plant since 2008 PROCESS Whole of ore sulphuric acid leach, solvent extraction separation and refining, with chemical precipitation to produce final products. Unique in the world today. The process does not produc
Slide 13: DZP Demonstration Pilot Plant 2008
DZP Demonstration Pilot Plant 2008 For personal use only
Slide 14: Marketing - Zirconium Applications
Marketing ‐ Zirconium Applications For personal use only
Slide 15: Zirconium Industry
Zirconium Industry For personal use only China consumes about 50% of world’s zircon output. About 30% of that zircon is converted to downstream products products. China currently produces about 90% of world’s ZOC and 60% of FZA. China has limited domestic supply of zircon and acquire from major j pr
Slide 16: DZP Zircon - Zirconium Chemicals Pricing
DZP Zircon ‐ Zirconium Chemicals Pricing For personal use only PRODUCT ZrO2 Q2 2010 US$/T Q1 2011 US$/T Q2 2011 US$/T Q3 2011 US$/T Zircon (producer/trader) 65% $900 ‐$1,150 $1,500 ‐$2,100 $1,700 ‐$2,750 $2,200 ‐$2,800 (100% ZrO2 basis) 100% ($1,380 ‐ $1,770) ($2,310 ‐ $3,230) ($2,620 ‐ $4,230) ($3,
Slide 17: Marketing - Niobium Applications
Marketing ‐ Niobium Applications For personal use only
Slide 18: Structure of Niobium Industry
Structure of Niobium Industry For personal use only Metallurgical CBMM in Brazil Structural steels Stainless and heat produces about 90% resistant steels of world demand. Pyrochlore FeNb Superalloys Super conducting Early 2011 a Japanese magnets Korean consortium acquired 15% of Columbite Nb 2 O 5 C
Slide 19: Niobium Demand and Price
Niobium Demand and Price For personal use only Niobium 2010 (Ferroniobium units) consumption ~85,000t – 90% Brazil Estimate for 2012 ~100,000t Ferroniobium price spiralled to US$60/kg in March 07 and is currently around US$40 - 45/kg Sources: IAMGOLD / TZMI
Slide 20: Marketing - REE Applications
Marketing ‐ REE Applications For personal use only
Slide 21: Rare Earth Supply - Demand
Rare Earth Supply ‐ Demand For personal use only Will rare earth supply demand be in balance from 2015 with Lynas y and Molycorp producing? High g probability p y for LREE but not HREE The DZP has a 75% LREE - 25% HREE split which gives it a demand advantage Separated rare earth products Value 2010
Slide 22: DZP Rare Earth Pricing
DZP Rare Earth Pricing For personal use only Rare Earths Prices (US$/kg FOB China REO) Source: Metal Pages© Numbers have been rounded DZP Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Light Rare Earth Distribution Average Average Average Average Average Average Lanthanum Oxide 19.51% $7.13 $25.75
Slide 23: Financial – DZP Product Output and Revenues
Financial – DZP Product Output and Revenues For personal use only 1 million tonnes pa of ore processed Anticipated Production and Revenues 1,000,000 tonnes per annum Product Output Revenue % of total ZBS, ZOH, ZOC, ZrO2 15,700tpa A$196M 39% Nb -Ta conc / FeNb 3,005tpa A$111M 22% LREE concentrate 3,0
Slide 24: DZP DFS Financials
DZP DFS Financials For personal use only DUBBO ZIRCONIA PROJECT DFS Financial Summary Project Capacity 400,000 tonnes pa 1,000,000 tonnes pa Capex – Plant1 $278M $543M Infrastructure + Owners $84M $165M SUB TOTAL $362M $708M EPCM $36M $43M Contingency $72M $142M TOTAL $470M $893M Revenue $189M $505M
Slide 25: DZP Marketing Developments
DZP Marketing Developments For personal use only Three MOUs completed that should take all of the 1Mtpa zirconium output. output 1. Joint venture with major chemical company and trading company to produce 15,000 – 20,000tpa of ZOC (5,400 – 7,200tpa ZrO2) from DZP feed, for internal consumption and p
Slide 26: DZP Site Infrastructure
DZP Site Infrastructure For personal use only
Slide 27: DZP Development pathway
DZP Development pathway For personal use only ‐> 2009 2010 2011 2012 2013 2014 DZP Resource definition 2001 ‐ 2002 9 Flow sheet development 2002 9 Laboratory Zr – Nb 1999 – 2002 9 Continued product Pilot plant Zr – Nb 2002 9 development Mine Plan & Scheduling 2002 9 Plant Design & Engineering 2002 9
Slide 28: DZP Strategic Significance
DZP Strategic Significance For personal use only Majority of “downstream” zirconium products are derived from zircon, whose output is governed by ilmenite/rutile from mineral sands mining operations. DZP is the only short to medium term substitute for zircon as a source of Zr China dominates downstr
Slide 29: Conclusion
Conclusion For personal use only Dubbo Zirconia Project A strategic t t i and d alternate lt t supply l for f the th zirconium, i i niobium and rare earths industries www.alkane.com.au lk Definitive Feasibility Study TZ Minerals International Pty Ltd Study managers: Steve Gilman and Gavin Diener Mar
Slide 30: 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 31: DZP – Resource / Reserve Statements
DZP – Resource / Reserve Statements For personal use only Dubbo Zirconia Project – Mineral Resources Toongi Tonnage ZrO2 HfO2 Nb2O5 Ta2O5 Y2O3 REO U3O8 Deposit (Mt) (%) (%) (%) (%) (%) (%) (%) Measured 35.70 1.96 0.04 0.46 0.03 0.14 0.75 0.014 Inferred 37.50 1.96 0.04 0.46 0.03 0.14 0.75 0.014 TOTAL