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1 ASX and MEDIA RELEASE 24 April 2015 Quarterly Report to 31 March 2015 Tomingley Gold Operations (TGO) TGO gold production was lower as the operations transitioned from oxide to fresh ore Production is expected to stabilise during the current quarter Production summary for the quarter: o Gold production 13,947 ounces o Total cash operating costs (AISC) A$1,588/ounce reflected the transition but financial year to date costs of A$1,162/ounce are near budget o Gold sales 16,000 ounces o Gold revenues A$23.6 million at an average price of A$1,472/ounce o Current gold hedge 27,500 ounces at A$1,540/ounce Cash flow after site operating expenses and development expenditure was A$2.64M and year to date A$21.5M Dubbo Zirconia Project (DZP) The NSW Planning Assessment Commission gave conditional approval for the Project on 11 February. Following finalisation of Consent Conditions with the Department of Planning and Environment, the application should proceed to PAC for determination Front End Engineering and Design (FEED) progressed with tender packages being released to the market Development of conceptual recovery process for hafnium which does not impact on existing flow sheet. Major marketing effort in US and Europe for hafnium, rare earths and zirconium The DZP remains the most advanced non-chinese new development capable of supplying the full spectrum of rare earth elements and other speciality metals to growing market sectors Exploration A small scout RC drilling program was completed at the Elsienora Project testing surface geochemical and geological targets. Significant intercepts uded: ELRC g/t Au from surface 5.86g/t Au from 10 metres ELRC g/t Au from 30 metres 5.72g/t Au from 30 metres and 2.03g/t Au from 69 metres CONTACT : IAN CHALMERS, MANAGING DIRECTOR, ALKANE RESOURCES LTD, TEL INVESTORS : NATALIE CHAPMAN, CORPORATE COMMUNICATIONS MANAGER, TEL MEDIA : HILL KNOWLTON STRATEGIES, CONTACT: IAN WESTBROOK, TEL OR Ground Floor, 89 Burswood Road, Burswood WA 6100, AUSTRALIA (PO Box 4384, Victoria Park WA 6979, AUSTRALIA) Telephone: Facsimile: mail@alkane.com.au

2 DUBBO ZIRCONIA PROJECT (DZP) zirconium, hafnium, niobium, yttrium, rare earth elements Australian Zirconia Ltd (AZL) 100% The Dubbo Zirconia Project (DZP) is located 25 kilometres south of the large regional centre of Dubbo in the Central West Region of New South Wales. The DZP is based upon the large in-ground resources of the metals zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements. Over many years the Company has developed a flow sheet consisting of sulphuric acid leach followed by solvent extraction recovery and refining to produce several products, uding trialling the process at demonstration pilot plant scale. During the Quarter the Company decided that it would not exercise the offer from the NSW Department of Trade and Investment, Regional Infrastructure and Services (DTIRIS), Division of Resources and Energy to apply for a separate Exploration Licence for uranium and thorium, as investigations had confirmed that the existing titles for Group One metals, uding all the proposed DZP production, would protect the site from opportunistic overlapping applications. Environmental Impact Statement (EIS) The Development Application for project approval and the EIS were lodged with the NSW Department of Planning and Environment (DP&E) in June The Company was advised in September 2014 that in accordance with NSW Planning Legislation relating to State Significant Developments, the application would proceed to the Planning Assessment Commission (PAC) for review. The commissioners published their Review Report on 11 February The report recommended that the DZP be approved provided that certain conditions were met. The Company has been in discussion with DP&E around how best to meet the conditions arising from both the Department and PAC reviews. The Company expects that the Development Application will be passed to the PAC for the final project determination in the coming month. Process and Product Development Process and product development continued for all DZP product streams in Australia and overseas to optimise recoveries and product qualities. Zirconium chemicals development continued with the successful production of reactive grades of zirconium basic carbonate for automotive catalysts, and other higher value zirconium chemicals applications. These markets are dominated by zirconium oxychloride based zirconium chemicals and powders, which are largely produced in China. Continued interest in hafnium as a separated product from zirconium has seen the Company continue to develop a process pathway to recover hafnium as an additional product for the DZP. The first stage of a process pathway has been developed to concept level by ANSTO. Importantly this process does not impact on the existing flow sheet, with hafnium extracted from the zirconium refining circuit. Hafnium has growing applications in the aerospace sector for making super-alloys, where it is added in small amounts to improve performance under severe operating conditions. Growth in hafnium demand will require new sources of supply, which should also encourage additional uses of the material to be developed. 2/9

3 The world market for hafnium metal is currently thought to be around 100 tpa but demand is increasing and prices through 2014 were estimated to be in the range of US$ /kg. Recent reports have indicated prices in the US$1,200/kg range. Marketing During the March quarter, Company representatives attended the Phosphor Global Summit in San Francisco in the United States, which focused on the trends in lighting materials for fluorescent and LED lights, uding the trends in demand for rare earths. AZL was also an invited speaker at the Freiberg Innovations Symposium in Germany which addressed the medium and long term supply requirements for critical metals in Europe, uding light and heavy rare earths, plus zirconium and hafnium. Earlier AZL met a number of international companies in Australia with demand for zirconium, hafnium, and rare earths for super alloys in aerospace and industrial uses such as internal gas turbines. Follow up visits were made in the United States and Europe to discuss potential supply from the DZP as an alternative source of critical metals. Companies involved in the hafnium metal supply chain welcomed the opportunity for the DZP to supply hafnium as dedicated product, rather than as a by-product from zirconium metal produced for the nuclear industry. Prices for chemical zirconia and zirconium chemicals remained flat during the quarter, with overcapacity reported in all markets. The price of zircon, the main source of zirconium, also remained flat during the quarter in US dollar terms, but rose for A$ based Australian producers. Rare earths prices remain flat, with some uncertainty in the lead up to the removal of Chinese export taxes from 1 s May and the planned timing and administration of a resource tax which will possibly be in place by the beginning of July. The Chinese rare earths market represents around US$4.2 billion (ACREI Association of Chinese Rare Earth Industry), which udes official exports of US$ 371 million. The new resource tax is likely to take into account the loss of export taxes, and the need to make significant investments on environmental measures to improve the current handling and disposal of waste streams from Chinese processing plants. Now that the government has consolidated the industry to just six mining enterprises, it is well placed to control rare earths supply and implement new resource tax measures and set prices which will return all six operations to profitability. Chinese domestic rare earths prices, and therefore export prices, are likely to increase following implementation of the new policies. In addition, the extent of illegal mining of rare earths remains an area of concern for the industry with up to 30-40% of magnet rare materials being source from illegal activities. This applies mostly to ionic clay deposits which contain neodymium (Nd), praseodymium (Pr), dysprosium (Dy) and terbium (Tb), the main magnet materials. A recent announcement by the US based rare earth producer, Molycorp, advised an agreement involving Siemens and Shin-Etsu to produce Neodymium-Iron-Boron (NdFeB) magnets for Siemens expanding wind turbine business. Molycorp would supply the rare earths from its Mt Pass mine in California to Shin-Etsu to manufacture the magnets to be used by Siemens. This agreement confirms the growth in this sector, estimated to be around 8 10% pa, which will underpin the demand for the four key rare earth elements, Nd, Pr, Dy and Tb required for the magnets. These products account for over 85% of DZP revenue from heavy and light rare earths. While the announcement referred to the preference to minimise the Dy content of the magnets, the industry generally believes that magnets containing Dy still deliver higher performance in key areas and there is very limited supply of Dy free magnets commercially available. 3/9

4 The DZP remains the most advanced non-chinese, new development capable of supplying the full spectrum of rare earth elements and other speciality metals to growing market sectors. Financing The financing program led by Sumitomo Mitsui Banking Corporation (SMBC) is progressing. While the immediate focus remains on achieving a small strategic sale at Project level and attracting the support of Export Credit Agency (ECA) funding, other opportunities are being investigated. Engineering Hatch are continuing the FEED to deliver capital and operating cost estimates to a target ±10% accuracy and a detailed schedule for the Project, building on the work of the Definitive Feasibility Study (DFS) for the DZP as previously released (ASX announcement 11 April 2013). Engineering design is now almost complete in all disciplines, with several significant process improvements uded in the design. These ude improvements for water management and waste treatment as well as a revamped rare earth circuit to improve recoveries. The tender packages for supply of plant and equipment have been released to the market, with several packages already closed and returned. Packages are of sufficient detail to allow rapid finalisation of contracts once Project Approval and financing are in place. Notification of successful tenderers to the market will not occur until actual contracts are awarded. 4/9

5 TOMINGLEY GOLD OPERATIONS (TGO) Alkane Resources Ltd 100% The TGO is currently based on three gold deposits (Wyoming One, Wyoming Three and Caloma) located about 14 kilometres north of the Company s inactive Peak Hill Gold Mine, and approximately 50 kilometres south west of Dubbo. The recently defined Caloma Two resource is being incorporated into the open pit development schedule, combined with a site strategic review to maximise the financial return and mine life. This will ude potential for underground operations on all resources. Operations Mining occurred in both the Caloma and Wyoming Three pits. The additional work in Caloma to reduce the wall angles in the upper benches to improve wall stability has been largely completed on the eastern side of the pit. Ore reconciliations remain positive for the Wyoming Three pit year to date. In the Caloma pit the mined sections, accelerated as a result of the wall stability works, reconciled less than the resource model as the ore transitioned from oxidised to fresh rock and uded a scheduled lower grade ore zone. Overall pit reconciliation to date remains in line with the resource model ounces. Due to extremely dry weather conditions, both mining and processing were restricted in capacity by the availability of water. Additional water capacity was sourced during the period, together with longer term solutions for the next summer period should they be required. Gold poured for the Quarter was below budget at 13,947 ounces but this was offset by sale of 16,000 ounces from bullion build up, which resulted in budget revenue of A$23.6 million. FY2015 production estimate remains at 65,000 75,000 ounces. TGO Quarterly Production Figures TGO Production FY 2014 Sept Q 2014 Dec Q 2014 March Q 2015 FY 2015 Waste mined BCM 4,635,684 1,653,357 1,414,557 1,308,783 4,376,697 Ore mined Tonnes 545, , , , ,239 Grade g/t Ore milled Tonnes 359, , , , ,895 Head grade g/t Recovery % Gold poured Ounces 20,711 22,362 19,175 13,947 55,484 Gold sold Ounces 16,374 23,734 16,500 16,000 56,234 Gold revenue A$M AISC 1 A$/oz 1, ,116 1,588 1,162 Stockpiles Ore for immediate milling Tonnes 185, , , , ,224 Bullion on hand Ounces 4,386 2,938 5,611 3,553 3,553 1 AISC = All In Sustaining Cost comprises all site operating costs, royalties, mine exploration, sustaining capex and mine development and an allocation of corporate costs, presented on the basis of ounces produced 5/9

6 ELSIENORA (gold) Alkane Resources Ltd earning 80% As previously advised (ASX on 23 March 2015) a 1,516 metre scout RC drilling program was completed at the Elsienora Project located approximately 75 kilometres south of Blayney. The drilling tested a number of surface geochemical and geological targets. Drill holes ELRC and ELRC were completed at the Cuddyong Prospect and intersected variable widths of mineralisation hosted by quartz veining within a moderately west dipping unit of very strongly clay weathered mafic to intermediate volcanics. Further work is required to assess the strike extents of the Cuddyong Prospect mineralisation which lies within the broad low level soil geochemistry anomaly (Au >10ppb, up to 1750ppb) extending over metres. ELRC and ELRC012 were completed as single scout holes testing surface geochemical anomalies along the previously designated Picker-Barite Trend, a zone of sulphide rich argillic altered volcaniclastic rocks with an intermittent barite rich horizon. This zone had not been subject to any previous drilling. Results uded: ELRC g/t Au from surface 5.86g/t Au from 10 metres ELRC g/t Au from 30 metres 5.72g/t Au from 30 metres and 2.03g/t Au from 69 metres ELRC g/t Au, 5.4g/t Ag and 0.18% Ba from 27 metres ELRC g/t Au, 23.2g/t Ag and 0.24% Ba from 26 metres 0.94g/t Au, 32.5g/t Ag and 0.24% Ba from 26 metres BODANGORA (copper-gold), WELLINGTON (copper-gold), CUDAL (gold-zinc), ROCKLEY (gold) and FINNS CROSSING (gold-copper) were inactive during the Quarter. LEINSTER REGION JOINT VENTURE (nickel-gold) Alkane Resources Ltd 20% diluting, Xstrata Nickel Australasia 80% Two prospects - Miranda and McDonough Lookout. Xstrata have advised that they have put their equity in the tenements up for sale. Alkane will not exercise its pre-emptive rights. CORPORATE The Group s cash position fell by $2.8M to $16.1M after providing an additional $1.5M security deposit (total $4.0M) supporting the expanded gold hedge facilities for TGO, and $2.83M expenditures predominantly in relation to the FEED and product development/marketing for the Dubbo Zirconia Project. Other financial assets as at 31 March 2015 ude gold bullion on hand (A$5.5M) and Regis Resources shares (A$2.6M). Sale of 1.6M Regis shares during the Quarter, realised a net A$1.2M. At the time of this report, the hedge book was 27,500 ounces at A$1,540/oz. 6/9

7 Competent Person Unless otherwise advised above, the information in this report that relates to exploration results, mineral resources and ore reserves is based on information compiled by Mr D I Chalmers, FAusIMM, FAIG, (director of the Company) who has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mrr Chalmers consents to the usion in this report of the matters based on his information in the form and context in which it appears Disclaimer This report contains certain forward looking statements and forecasts, uding possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, industry growth or other trend projections. Such statements are not a guarantee of future performance and involve unknown risks and uncertainties, as well as other factors which are beyond the control of Alkane Resources Ltd. Actual results and developments may differ materially from those expressed or implied by these forward looking statements depending on a variety of factors. Nothing in this report should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. This document has been prepared in accordance with the requirements of Australian securities laws, which may differ from the requirements of United States and other country securities laws. Unless otherwise indicated, all ore reserve and mineral resource estimates uded or incorporated by reference in this document have been, and will be, prepared in accordance with the JORC classification system of the Australasian Institute of Mining, and Metallurgy and Australian Institute of Geosciences. ABOUT ALKANE ASX: ALK and OTCQX: ANLKY Alkane is a multi-commodity company focused in the Central West region of NSW Australia. Currently Alkane has two advanced projects - the Tomingley Gold Operations (TGO) and the nearby Dubbo Zirconia Project (DZP). Tomingley commenced production early Cash flow from the TGO will provide the funding to maintain the project development pipeline and will assist with the pre-construction development of the DZP. The DZP Environmental Impact Statement has been completed and a development decision is anticipated Q Financing is in progress and this project will make Alkane a strategic and significant world producer of zirconium products and heavy rare earths when it commences production in Alkane s most advanced gold copper exploration projects are at the 100% Alkane owned Wellington and Bodangora prospects, and Elsienora farm-in. Wellington has a small copper-gold deposit which can be expanded, while at Bodangora a large 12km 2 monzonite intrusive complex has been identified with porphyry style gold copper mineralisation. Encouraging gold mineralisation was recently drilled at Elsienora. 7/9

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9 614000mE mE MGA mE G un d g on C e re k D iv er er at W s ly pp Su mE pe Pi Offset planting (indicative) Highway M L1684 PM Drainage Control Levee mN Crown Land Topsoil Dump Caloma WRE 2 Administration & Car Park Area PM Topsoil Dump 2 Caloma Eastern Surface Water Diversion Structure Sedi ment Basin 5 Light Vehicle Access Road Emergency Exit PM PM PM Caloma A blution Block? W ater Treatment C ontainer Lab Workshop Machinery Yard & GO Line Sub Station Sedimentation Basin Plant Area Secondary Crusher Primary Crusher ROM PAD DAMS PM PM RWP Raw Water Pond Emergency Access ad Haul Ro PWP Process Water Pond Wyoming PM Sedimentation Basin 1 Three PM Hau l Road WRE 3 Underpass 15 MEG PM RSF Location Haul 43 MEG Road mN Pit de-watering and storage pond Caloma Two Topsoil Dump Wyoming PM PM Sediment Basin 2 Wyoming Telstra Optic Fiber Cable (approx) One Central Surface Water Diversion Structure Storage Open Drain Drainage Control Levee 66kV overhead powerline Perimeter Mining Lease Fence n Ba k Di ve r Bank Dam 5000m³ mN MGA Ne we ll Divers ion Relocated NextGen Optic Cable (approx) sio n Sediment Basin 3 Dam 5000m³ Sediment Basin 4 Relocated 22kv Powerline Security Fence One Sided Waterway 2 2 k V o v e rh e ad p o w e r lin e s Traine r Bank Dam 5000m³ M y a lls U n ite d G o ld M in e (H ist o ric ) N o.2n Ba nk mE T o m in g le y n io ve Di io rs M a in S ha ft TO M IN G LEY G O LD PRO JECT n Full Site Layout R e ed y s Sh af t C o m p il e d : A lk a n e D ra w n : D JM P la n N o. : A L K T G O 2 A L D a te : 1 3 M a rc h