Alkane Resources Ltd · ASX:ALK
Alkane Resources — Alkane Exploration — Shareholder Meeting (May 2005)
48 slides from Alkane Resources's shareholder meeting presentation, May 26, 2005
Slide 1: Annual General Meeting Operations Presentation
LKANE EXPLORATION LTD ABN 35 000 689 216 ANNUAL GENERAL MEETING Operations Presentation 26 May 2005
Slide 2: Central West - New South Wales
Central West - New South Wales LKANE
Slide 3: Central West NSW Projects
Dubbo Central West Bodangora Au-Cu Tomingley Au NSW Dubbo Wellin gton Wellington Cu-Au Peak Hill Au-Cu Rockley Gulgong Projects Junee Molong Volcanic Volcanic Belt Na rrowmine NORTHPARKES Belt Volcanic Parkes Molong Cu-Au Belt Orange Cudal Cu-Au Bathurst Forbes CADIA Moorilda Au-Cu COWAL Younger gra
Slide 4: Peak Hill Gold Mine
PEAK HILL GOLD MINE Conventional Open Cut Mining Agglomeration Heap Leach recovery of gold Production Commenced 1996 at Capital Cost $5 million 1996-2005 Output 153,000 ounces Cash Operating Surplus $15 million 100,000-500,000 ounces in sulphide deposit from 100m to 300m moderately refractory ore –
Slide 5: Peak Hill Gold Mine rehabilitation
PEAK HILL GOLD MINE Rehabilitation program Heap pads Waste rock emplacement commence complete July 2005 Open pits Complete OCE LKANE
Slide 6: Tomingley Gold Project Regional Outcrop Geology
Tomingley Gold Project Regional Outcrop Geology Cover Wyoming Hervey Group Myalls United Dulladerry Rhyolite Yeoval Granite Forbes Group Mungincoble Chert Cotton Formation Goonumbla (Mingelo) Volcanics LKANE
Slide 7: Tomingley Gold Project Wyoming History
TOMINGLEY GOLD PROJECT Wyoming History Acquisition: Separate production royalties Compass March 2001; Golden Cross August 2001; Climax January 2004 Area: 366km2 Drilling: First intercept May 2001 – Wyoming One 2001 – 13,939m (223) - exploration 2002 – 24,871m (279) – evaluation - Wyo Three discov Ju
Slide 8: Wyoming Geological Summary
Wyoming Geological Summary Pelitic sediments Feldspar porphyry Volcaniclastic sediments Andesite lava Chlorite-talc schist Mineralisation LKANE
Slide 9: Wyoming One Simplified
Wyoming One Simplified Interpretation 376 Structure Pelitic sediments Volcaniclastic sediments Feldspar porphyry 200m RL (-70m) Feldspar porphyry 100m RL (-170m) Feldspar porphyry 0m RL (-270m) Alkane drillhole till end 2002 Alkane drillhole 2003 LKANE
Slide 10: Wyoming One North-South Section
21 Wyoming Y8 W One North – South 85m @ 2.15g/t Au Section 9m @ 12.45g/t Au 614075mE 6m @ 9.53g/t Au 12m @ 6.22g/t Au Alluvium 12.5m @ 7.88g/t Au Volcaniclastic sediments Feldspar porphyry 18.4m @ 5.74g/t Au 7.2m @ 11.06g/t Au Mineralisation 4.1m @ 4.59g/t Au LKANE
Slide 11: Wyoming One East-West Section
Wyoming 8m @ 3.24g/t Au One 7m @ 3.52g/t Au 5m @ 0.93g/t Au East - West 10m @ 2.91g/t Au 3m @ 3.85g/t Au Section 4m @ 2.27g/t Au 32m @ 1.75g/t Au 4m @ 2.56g/t Au 6393300mN 23m @ 2.08g/t Au Alluvium Pelitic sediments 17m @ 4.72g/t Au Feldspar porphyry 9m @ 6.70g/t Au Volcaniclastic sediments Volcanic
Slide 12: Wyoming One 3D Model
Wyoming One 3D Model LKANE
Slide 13: Tomingley Gold Project Resource Summary
TOMINGLEY GOLD PROJECT Resource Summary Wyoming One and Three Dec` 04 0.75g/t gold cut off Measured 4.835 mt @ 2.24g/t gold 348,350 oz 58% Indicated 1.025 mt @ 2.76g/t gold 91,000 oz 15% Inferred 1.270 mt @ 4.09g/t gold 167,000 oz 27% TOTAL(0.75) 7.130 mt @ 2.70g/t gold 606,350 oz 100% LKANE
Slide 14: Wyoming Development Summary
TOMINGLEY GOLD PROJECT Wyoming Development Summary Current program: Remodelling of ore system optimise open pit grade Examine u/g options based on high grade shoots Drilling down dip - down plunge extensions at Wyoming One, initially in HWZ Additional drilling to target high grade zones in the Wyomi
Slide 15: Wyoming One Hangingwall
Wyoming One Hangingwall gram/metre contours WY 822D Recent hole 12m @ 3.45g/t Planned hole 4m @ 5.37g/t LKANE
Slide 16: Wyoming One '376' Structure
Wyoming One ‘376’ Structure gram/metre contours LKANE
Slide 17: Wyoming One Conceptual Pit and Underground Development
Wyoming One Conceptual Pit and U/G development 3D Model LKANE
Slide 18: pmd CRC Numerical modelling of Wyoming One porphyry
pmd CRC Numerical modelling of the Wyoming One porphyry and generic porphyry shapes Peter Schaubs May 2nd, 2005
Slide 19: Project Goals
predictive redictive mineral ineral discovery iscovery Project Goals pmd CRC • “Reverse engineer” Wyoming One so that a predictive understanding of vein distribution is gained • Predict fracture and vein distribution around other idealised porphyry bodies to guide future drilling efforts
Slide 20: Objectives - Stage 1
predictive redictive mineral ineral discovery iscovery Objectives - Stage 1 pmd CRC • Reverse engineering Wyoming One: mechanical modelling tests on various parameters (geometry, rock properties, pore pressure gradients etc) using the simplified shape of the Wyoming One porphyry in a uniform host ro
Slide 21: Wyoming One Models - scenarios
predictive redictive mineral ineral discovery iscovery Wyoming One Models - scenarios pmd CRC • Porphyry and matrix only – 080, N-S, NE-SW, NW-SE contraction – Dextral and sinistral strike slip deformation • With 376 structure • With Hanging Wall structures • Extended 75 m downplunge • Extended 75 m
Slide 22: Tomingley Gold Project Regional Exploration
Tomingley Gold Project 3m @ 4.59g/t Au 102m @ 0.66g/tAu 12m @ 1.52g/t Au 3m @ 2.22g/tAu Regional Exploration 6m @ 2.25g/t Au 7m @ 3.22g/t Au 6m @ 2.03g/tAu 66,500oz from two reefs average grade 8g/t Au Mined over 450m to a 2m @ 4.17g/t Au depth of 230m 18m @ 1.38g/t Au 3m @ 5.02g/tAu LKANE
Slide 23: Wellington Bodangora Project Location
Wellington Dubbo Bodangora Bodangora Wellin gton Wellington Project Rockley Gulgong Volcanic Belt Location Molong Junee Volcanic Na rrowmine Belt Parkes Volcanic Belt Orange Forbes Bathurst Younger granites Monzonitic intrusions Ordovician arc volcanics Fifield complexes LKANE
Slide 24: Wellington Bodangora Regional Geology
Wellington Bodangora Comobella 18m 18m@ @0.95g/t 0.95g/tAu, Au,0.15%Cu 0.15%Cu Regional EL4022 450m 450mxx150m 150mAu Au++Cu Geology Cu Bodangora Bodangora 0.2M oz target +0.5M oz Great Australian Basin Permian sediments EL5493 Wellington Federal Carboniferous granite Devonian – Silurian sediments a
Slide 25: Wellington Project Galwadgere Geological Interpretation
Wellington Project Galwadgere Geological Interpretation with Recent Resource Drill Holes LKANE
Slide 26: Galwadgere October 2004 RC Drill Holes
Wellington Project Galwadgere October 2004 RC Drill Holes LKANE
Slide 27: Wellington Project Galwadgere Program
WELLINGTON PROJECT Galwadgere Program Drilling: 4,030m RC/core tested ore system over strike length of 400m, completed to depth of 150m 50m sections to Indicated Resource status Further drilling to be scheduled Resource: 2.09Mt @ 0.99% copper and 0.30 g/t Gold Scoping study: Basic open pit concept a
Slide 28: Orange Area Regional Geology
Orange Area 1m @ 3.36g/t Au and 0.65% Zn 1m @ 3.36g/t Au and 0.65% Zn 1m @ 9.69g/t Au and 0.20% Zn Regional 1m @ 9.69g/t Au and 0.20% Zn 1m @ 9.91g/t Au and 0.56% Cu 550m x 150m porphyry 1m @ 9.91g/t Au and 0.56% Cu 550m x 150m porphyry 48m @ 0.31g/t Au 0.35 % Cu 48m @ 0.31g/t Au 0.35 % Cu Geology 3
Slide 29: Central West Conceptual Development
Wyoming 1 & 3 Bodangora Central West 600,000 ozs Dubbo Dubbo Historic 0.2M oz Target +0.5Moz Conceptual Tomingley Wellington Hub Wellin gton Peak Hill Development Peak Hill Rockley Gulgong Galwadgere Volcanic Belt +20,000t Cu Hubs Northparkes Molong Peak HillJunee Sulphide +25koz Au Volcanic Na ozs
Slide 30: Dubbo Zirconia Project Summary
DUBBO ZIRCONIA PROJECT SUMMARY • One of the worlds largest zirconium, yttrium and tantalum resources (+ 100 million tonnes) - also contains significant niobium and rare earth elements • Project based upon large Jurassic aged alkaline volcanic complex with highly metal enriched vertical trachyte intr
Slide 31: Dubbo Zirconia Project Site and Infrastructure Location
DUBBO ZIRCONIA PROJECT Project Site and Infrastructure Location
Slide 32: Dubbo Zirconia Project Resources
DUBBO ZIRCONIA PROJECT RESOURCES Measured Resource : 35.7 million tonnes grading 0 - 55 metres 1.96% Zr02, 0.04%HfO2, 0.14% Y 2O3 0.46% Nb2O5, 0.03% Ta2O5 and 0.75% REO Inferred Resource : 37.5 million tonnes at similar grades 55 - 100 metres TOTAL : 73.2 million tonnes LKANE
Slide 33: Dubbo Zirconia Project Process Flow Sheet
DUBBO ZIRCONIA PROJECT PROCESS FLOW SHEET LKANE LKANE
Slide 34: Structure of the Zirconia Industry
DUBBO ZIRCONIA PROJECT Structure of the Zirconia Industry RAW MATERIALS PROCESSED PRODUCTS END USES BADDELYITE ZIRCONIA PRODUCTS (Generally increasing purity) (5000 tonnes) FUSED Refractories ZIRCONIA Ceramic Pigments CHEMICAL Glass/Gemstones PURIFICATION Catalysts ZIRCON Oxygen Sensors SOFC (60000
Slide 35: Dubbo Zirconia Project Current Strategy
DUBBO ZIRCONIA PROJECT Current Strategy Lack of action from Astron has resulted in termination of JV Alkane in discussions to float 50% of AZL (the holding subsidiary) or enter into new JV with existing producer/end user Raise/inject sufficient capital to complete process optimisations, and construc
Slide 36: Western Australian Projects
Western Australian Projects Nullagine Nullagine and Leinster Leinster JV LKANE
Slide 37: Leinster Area Jubilee Mines JV
WESTERN AUSTRALIAN MT KEITH PROJECTS Leinster Area McDONOUGH LOOKOUT Jubilee Mines JV MIRANDA 9m 9m@ @0.51% 0.51%Ni Ni WELL 0.15m 0.15m@@2.9% 2.9%NiNi 0.2m 0.2m@@8.1% 8.1%Ni Ni 10km 10kmkomatiite komatiite LEINSTER DOWNS Four Fourchannel channelzones zones LEINSTER 0.5-1.0% 0.5-1.0%Ni Niover over+m+
Slide 38: Nullagine
Nullagine Nullagine LKANE
Slide 39: Nullagine Project satellite image
Nullagine Project – satellite image Nullagine Bonnie Creek Palaeochannel LKANE
Slide 40: Nullagine Project Bonnie Creek System
Nullagine Project Bonnie Creek System Channel Iron Deposits NULLAGINE LKANE
Slide 41: Nullagine Project Bonnie Creek Palaeochannel
Nullagine Project – Bonnie Creek Palaeochannel Mesa deposits LKANE
Slide 42: Nullagine Project Bonnie Creek Iron Deposit
Nullagine Project – Bonnie Creek Iron Deposit Residual mesa deposit LKANE
Slide 43: Nullagine Project Bonnie Creek Mesa CID
Nullagine Project Bonnie Creek Mesa CID LKANE
Slide 44: Nullagine Project Robe River CID Deposits
Nullagine Project – Robe River CID Deposits Typical residual mesa deposit LKANE From Robe River Iron Associates web site www.roberiver.com
Slide 45: Nullagine Project Tertiary Palaeochannel
Nullagine Project - Tertiary Palaeochannel Bonnie Well Drill Traverse LKANE
Slide 46: Nullagine Project Channel Iron Deposits
Nullagine Project Channel Iron Deposits Bonnie Creek System Potential 150 - 220M tonnes CID pisolite iron 58.48 57.28 58.57 Surface sampling 58.27 55.56 Fe Si02 Al2 O3 P LOI Fe (C) 58 3.23 3.95 0.03 9.07 63 59.83 Robe River CID Ore 57.87 Fe Si02 Al2 O3 P LOI Fe (C) 57 5.50 2.50 0.04 9.20 63 58.13 Av
Slide 47: Nullagine Project Location and Rail Corridors
Nullagine Project Location and Rail Corridors Nullagine LKANE From Fortescue Metals Group web site www.fmgl.com.au
Slide 48: Alkane Strategy 2004-06
ALKANE STRATEGY 2004-06 Strategic focus remains on Central West Region in New South Wales with the aim of developing a resource inventory and substantial production output. Centralise operations management GOLD: to build a 100,000 oz per year or cash flow equivalent with copper, output based upon pr