ALLIANCE RESOURCES L I M I T E D

Transcription

1 ALLIANCE RESOURCES L I M I T E D THE FOUR MILE URANIUM PROJECT Australia s next uranium mine Australian Uranium Conference Fremantle, Western Australia Patrick Mutz Managing Director July 2009

2 Corporate Statement An ASX-listed resource company focussed on the development and imminent production from its joint venture interest in the Four Mile Uranium Project in South Australia, and in realising value from its extensive exploration interests. 2

3 Corporate Snapshot Corporate ASX code AGS Shares on Issue 341M Market Capitalisation ( ) ~A$285M Unlisted Options 8.63M Net Cash (31 Mar 2009) audited A$12.4M Net Cash (22 Jul 2009) unaudited ~A$52.0M Board & Management John Dunlop Patrick Mutz Ian Gandel Tony Lethlean Steve Johnston Ian Pamensky Chairman Managing Director Director Director General Manager Company Secretary Major Shareholders Abbotsleigh 26.8% Top 20 shareholders 59.1% Board & Management 31.6% No debt & strong shareholder support 3

4 Successful Capital Raising Issued Capital (pre Placement) Placement (1) Total Shares on Issue Rights Issue (1 for 12) (2)(3) Shares on Issue (post Rights Issue) (3) 274M 41M 315M 26M 341M Net Cash (31 Mar 09) audited $ 12.4M Placement Proceeds (net) $ 26.9M Net Cash (3-Jun-09 ) unaudited $ 39.3M Rights Issue Proceeds (gross) (3) $ 15.7M Margin for placement of shortfall (net) (4) $ 0.8M Projected Cash (post capital raising) (5) ~$ 52.0M Notes: 1. Allotment date 3 June Price A$ Record date 4 June Price A$ Assumes Rights Issue (RI) fully subscribed. Closing date 25 June Additional funds from placement of RI shortfall at $0.68 less costs. 5. Includes capital raising expenses and ongoing business expenses thru 8-Jul-09. 4

5 Project Locations 5

6 Four Mile Uranium Project Joint Venture

7 JV Partner - Quasar Resources Pty Ltd 75% partner and manager of Four Mile Project Joint Venture Australian-based private exploration company Affiliate of Heathgate Resources Pty Ltd; owner and operator of the Beverley Uranium Mine Assumed 100% of exploration costs on Four Mile Project up to decision to mine to earn 75% interest 7

8 Four Mile Uranium Project JV Quasar decision to mine Sep 2008 Alliance contributing to project development costs incurred from 22 October 2008 In-Situ Recovery (ISR) mining proposed Lower cost mining option Lower environmental impact Mining and concentrate production to commence January 2010 * 3.0 Mlb (1.4Kt) U 3 O 8 annual production target [100%] *as advised by Quasar adjacent to Beverley Uranium Mine and existing infrastructure 8

9 Four Mile Processing Proposal Quasar mining proposal Construction of satellite resin loading plant at Four Mile Transport of loaded resin by truck to Heathgate s Beverley Plant for: resin stripping U precipitation, and drying, packaging and storage of uranium concentrates Return stripped resin by truck to Four Mile satellite plant 9

10 In Situ Recovery (ISR) Technology Used at nearby Beverley uranium mine since 2000 Mining method for 29% of global U 3 O 8 production (1) Lower cost compared to conventional mining methods Typical ISR recovery ~70% in 12 months Ultimate recovery likely higher with higher grade ores & higher U price (1) production statistic; WNA Image courtesy Heathgate Resources Pty Ltd low environmental impact 10

11 Four Mile Uranium Project JV Current Inferred Uranium Resource 61 Mlb (28,000 tonnes) U 3 O % U 3 O 8 Excellent potential for expanded resource base Four Mile East & West deposits Targeting 50,000 tonnes U 3 O 8 Expanded resource study at FMW underway Independent scoping study on project costs nearing completion world-class, high-grade uranium deposit *Quasar s Decision to Mine 11

12 Australian Uranium Mining Resources (U 3 O 8 ) K tonnes Grade(%) Olympic Dam, SA (Jun 2008) 2, Ranger, NT (Dec 2008) Four Mile, SA (partial) Beverley, SA (pre-mining; 1999) Honeymoon, SA Production Tonnes (U 3 O 8 ) Ranger, NT 5,273 ( ) Olympic Dam, SA 4,115 ( ) Four Mile, SA 1,360 (from 2010) Beverley, SA 707 ( ) Honeymoon, SA (from 2010) Ranger Olympic Dam Four Mile JV Beverley Honeymoon Well Sources: World Nuclear Association 1 Uranium One 12

13 Growth Target - Resources 80 Australian Uranium Resources 0.60 Uranium Resources (Ktonnes U 3 O 8 ) Targeting 50,000 tonnes Average Grade (% U 3 O 8 ) Excludes Olympic Dam due to scale 13

14 Growth Target - Production At scheduled production, Four Mile will rank amongst Top 10 producing uranium mines in the Western world Uranium Production (tonnes per annum) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0? Source: WNA, 2007 statistics 14

15 Four Mile Project Economic Inputs Project Development Costs (100%) Alliance share (25%) A$90M A$22.5M Total Cash Costs (incl. royalties) A$38.80/lb US$31/lb * * Based on US$0.80:A$1 Disclaimer: Alliance Resources was not involved with the generation of Four Mile Project development and operating costs and does not endorse or accept Quasar s estimated costs as correct and accurate as those costs were generated internally by Quasar and affiliate Heathgate Resources Pty Ltd and lack independent verification by Alliance or its consultants. Alliance has commissioned an independent scoping study to review Quasar s estimated costs and project assumptions. Alliance reserves all its rights with regards to Quasar s proposed costs. 15

16 Uranium Market Price $160 $140 $120 $100 $80 $60 $40 $20 $0 Uranium Market Price Current market prices: Spot price US$50/lb Long-term US$65/lb Gap between spot price and longterm price remains excessive Spot market thin and not reflective of strength of current market Long term market applicable to projects with long mine life Four Mile Project production fits long term pricing model UxC EOM Spot Price Tradetech EOM Long-Term Price Current spot price not indicative of Four Mile project economics 16

17 Four Mile Project - Timeline 2008 May Application for Mining Lease filed September Quasar decision to mine October Effective date of Alliance contributing to JV 2009 January Quasar issued Public Environmental Report (PER) February PER Public comment period closed July Environmental approvals Grant of Mining Permit December Scheduled completion of construction 2010 January Mine Commissioning & Start up 17

18 URANIUM the Future Fuel Near ZERO Greenhouse Gas Emissions Base-load Energy Source Cost Effective Photo courtesy of Heathgate Resources Pty Ltd; Beverley Uranium Mine 18

19 Four Mile Regional Exploration Joint Venture

20 Four Mile Exploration JV Alliance: 25% Quasar Resources: 75% Strategic tenement position 1248 km 2 Alliance free carried to decision to mine Outside Four Mile Project Area Limited exploration for coppergold by Quasar to-date substantial exploration potential 20

21 Four Mile Exploration JV Mining Lease Application Area Mining Lease Application Area ~150 km 2 Potential for sedimentary-hosted uranium throughout 21

22 Four Mile Project Strengths Large, high-grade deposit Amenable to lower cost, lower environmental impact In-Situ Recovery (ISR) mining technology Close to existing infrastructure and established ISR mine Access to highly experienced ISR mining team 22

23 Four Mile Project Strengths Positive support for Four Mile Project by SA government Joint venture partners committed to an aggressive and rigorous project development plan and schedule Uranium production imminent Highly prospective exploration tenement with potential for further expansion of uranium resource base 23

24 Conclusion The Four Mile Uranium Project: Australia s next operating uranium mine Potential to be the largest and highest-grade ISR uranium mine in the world 24

25 Cautionary & JORC Statements Cautionary Statement This presentation has been prepared by Alliance Resources Limited ( Alliance ). The information contained in this presentation is of a general nature only and does not constitute and offer to issue, or to arrange an issue, of securities or the financial products. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. This presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision on the basis of this presentation, the investor needs to consider, with or without the assistance of a financial advisor, whether the investment is appropriate with due regard for their particular investment needs, objectives and financial circumstances. This presentation is based on internal company and joint venture partner reports, stock exchange announcements, stockbroker research and technical information believed to be reliable. To the maximum extent permitted by law, none of Alliance s directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault of negligence, for any loss arising from the use of the information contained in this presentation nor is any obligation assumed to update such information. In particular, no representation or warranty, express or implied, is provided as to its accuracy, completeness or currency of the information contained in this presentation. Alliance accepts no obligation to correct or update the information or opinions expressed in it. Opinions expressed are subject to change without notice and reflect the views of Alliance at the time of presenting. JORC Compliance Statement The information in this report that relates to uranium Exploration Results and Mineral Resources is based on information compiled by Mr K Bampton who is a Corporate member of both the Australian Institute of Geoscientists and The Australasian Institute of Mining & Metallurgy. Mr Bampton trades as Ore Reserve Evaluation Services. Mr Bampton has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity to which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bampton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. All other information in this report that relates to copper and gold Exploration Results and Mineral Resources is based on information compiled by Mr Stephen Johnston who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Johnston is a full-time employee of Alliance Resources Limited and 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 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Johnston consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 25

26 Contact Details Patrick Mutz Managing Director Alliance Resources Limited Suite 3, City Road Southbank Victoria 3006 T F info@allianceresources.com.au Website: 26