BMO CAPITAL MARKETS GLOBAL METALS & MINING CONFERENCE PRESENTATION 25 FEB 2008

Transcription

1 ASX ANNOUNCEMENT Manager Announcements Company Announcements Office ASX Limited 4th Floor, 20 Bridge Street Sydney NSW 2000 By E-Lodgement No. of pages: February 2008 BMO CAPITAL MARKETS GLOBAL METALS & MINING CONFERENCE PRESENTATION 25 FEB 2008 We attach a copy of a presentation being given by Mr Steve Johnston, CEO at the BMO Capital Markets Global Metals & Mining Conference ( BMO Conference ) in Miami (USA) on 25 February The BMO Conference is one of the most comprehensive mining institutional investor events in the world. More than 1,200 attendees from six continents have registered to attend the BMO Conference. For a colour version of the attached presentation, please go to our website About Alliance Resources Alliance Resources Limited is an emerging uranium and gold producer. Alliance has a 25% free carried interest in the Arkaroola Project in South Australia, where its 75% joint venture partner, Quasar Resources Pty Ltd, is exploring for uranium and copper-gold. Quasar is an affiliate of Heathgate Resources Pty Ltd, which owns and operates the Beverley Uranium Mine, located immediately east of the Arkaroola Project. Alliance is also developing the Maldon Gold Project in Victoria and exploring for copper-gold at the Warrina Project in South Australia. For information about Alliance Resources please contact: Steve Johnston, Chief Executive Officer Tel Ian Pamensky, Manager Finance and Company Secretary Tel Nicholas Read / Kate Bell Read Corporate Tel Or consult Alliance s website: Suite 3, City Road Southbank, VIC, 3006 P F info@allianceresources.com.au ABN

2 ALLIANCE RESOURCES LIMITED Investor Presentation March 2008 Alliance Resources Limited Suite 3, City Road Southbank, Victoria 3006, Australia T: F:

3 IMPORTANT NOTICE This presentation has been prepared for 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 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. Page 2

4 PRESENTATION OVERVIEW EXECUTIVE SUMMARY 4 ARKAROOLA JOINT VENTURE 7 Location and Setting 8 Regional Stratigraphy 11 FOUR MILE URANIUM PROJECT 12 Mineral Resources 14 Australian Peer Ranking 18 Regional Potential 19 Proposed Development 20 MALDON PROJECT (Gold) 21 WARRINA PROJECT (Copper-Gold) 22 REASONS TO INVEST 23 Page Page 3

5 EXECUTIVE SUMMARY ASX Listed Listed in 1994, ASX Code AGS Board and shareholder restructure in 2003 Main projects: Arkaroola JV (Uranium) & Maldon (Gold) Arkaroola Uranium South Australia Alliance has 25% equity in JV with Quasar (affiliated with Heathgate, owner of Beverley Uranium Mine) Four Mile Project is most substantive uranium discovery in Australia since 1985 Potential to use infrastructure at nearby (8km) Beverley Mine Project supported by South Australian state government Maldon Gold Victoria 100% owned by Alliance Production play using previous sunk capital Owns treatment plant; decline in development Targeting high grade gold lodes Page 4

6 EXECUTIVE SUMMARY (Continued) Copper-gold-(uranium) Uranium-copper-gold Base metals (uranium) Gold Page 5

7 EXECUTIVE SUMMARY (Continued) Corporate CAPITAL STRUCTURE Issued Capital Market Capitalisation 12 Month Range Cash Reserves Board & Management 273m Shares, 4.9 m Unlisted Options A$273 $1.00 A$0.86 A$2.79 A$29.2 m (31 December 2007) 38% $3.00 Share Price Performance $2.50 $2.00 $1.50 Included in S&P/ASX 300 index (March 2007) $1.00 $0.50 $ Feb-07 1-May-07 1-Aug-07 1-Nov-07 1-Feb-08 Page 6

8 EXECUTIVE SUMMARY (Continued) John Dunlop Chairman Mr Dunlop is a mining engineer with over 35 years experience in a variety of base metal and precious metal production and management roles. He is a Board member of the Australasian Institute of Mining & Metallurgy. Ian Gandel Director Mr Gandel is a Melbourne-based businessman with extensive experience in building businesses, including the Gandel retail centres and Priceline chain. He private mining investment vehicle, Abbotsleigh, is the major shareholder in Alliance. Tony Lethlean Director Mr Lethlean is a geologist by background with over 10 years mining experience and a further 10+ years in the stockbroking and corporate advisory sector. Steve Johnston Chief Executive Mr Johnston is a geologist with over 25 years experience in the Australian mining industry in technical and executive roles for a variety of commodities. Mr Johnston is a Corporate Member of the Australasian Institute of Mining & Metallurgy. Ian Pamensky Company Secretary Mr Pamensky is a chartered accountant with 10+ years experience in financial roles with ASX listed mining companies. Page 7

9 ARKAROOLA JV: Location and Setting Page 8

10 ARKAROOLA JV: Location and Setting Alliance (25% free carried during exploration phase) Quasar (75%), affiliate of Heathgate, owner of nearby Beverley Uranium Mine Strategic tenement holding (1248 km 2 ) Exploration potential for further U & Cu-Au discoveries 2007 Budget: A$14 million Page 9

11 ARKAROOLA JV: Location and Setting Four Mile Beverley Mine Radiometric (U channel) Image One of the most radiogenic regions in Australia providing elevated source rocks for development of sediment-hosted U deposits, e.g. Four Mile & Beverley Page 10

12 ARKAROOLA JV: Regional Stratigraphy A B Courtesy: Lindsay Curtis / Quasar Resources Pty Ltd A Four Mile Project Beverley B Page 11

13 ARKAROOLA JV: Four Mile Uranium Project Page 12

14 ARKAROOLA JV: Four Mile Uranium Project Four Mile (U) Currently 2 sediment-hosted uranium deposits hosted by carbonaceous sands and gravels. Seal layers present. Four Mile West Inferred Mineral Resource 3.9 million 0.37% U 3 O 8 containing 15,000 tonnes (32 million lb) U 3 O 8 (cutoff grade 0.15%) Deposit open in several directions Two layers of mineralisation, 2.2 metres average thickness Average depth to upper mineralisation 152 metres Four Mile East Exploration Target Range 13,500 to 21,500 contained tonnes (30 to 47 million lb) U 3 O 8 Drilling continuing ahead of initial mineral resource estimate commencing 2Q 2008 Mainly one layer mineralisation at basement 1.5 metres average thickness Average depth to mineralisation 170 to 210 metres Page 13

15 ARKAROOLA JV: Four Mile Mineral Resource Page 14

16 ARKAROOLA JV: Four Mile West NW Potential U 3 O 8 mineralisation SE 1.57% pu 3 O % pu 3 O % pu 3 O % pu 3 O % pu 3 O % pu 3 O % pu 3 O % pu 3 O % pu 3 O % pu 3 O 8 Page15

17 ARKAROOLA JV: Four Mile West (Section) Courtesy: Quasar Resources Pty Ltd Page 16

18 ARKAROOLA JV: Four Mile West Redox boundary (base of upper level) in AKC002 PQ drill core. Dark mineralisation is coffinite grading 2% U 3 O 8. Downhole to right. Photo courtesy of Quasar Resources. Page 17

19 FOUR MILE: AUSTRALIAN PEER RANKING (excluding Olympic Dam) Bigrlyi Honeymoon Napperby Jabiluka Yeelirrie Four Mile Ranger Four Mile Kintyre Mt Gee Valhalla Beverley Westmoreland Four Mile Koongarra Manyingee Oobagooma Lake Way & Cent. Lake Maitland JV Tonnes (x 1000) Grade (% U3O8) Aim to define 50 Kt Jan 2008 FMW Resource 15 Kt FME Target 13.5 Kt to 21.5 Kt April 2007 FMW Resource 15 Kt Page 18

20 ARKAROOLA JV: Regional Potential Potential for sediment-hosted Uranium over ~150 km 2 Page 19

21 ARKAROOLA JV: Proposed Development Concept Evaluation Study (Jan 2008) recommends: Staged development using ISL mining subject to successful Field Leach Trial. Field Leach Trial scheduled to commence 2Q 2008 subject to regulatory approvals. Uranium concentrate production proposed to commence 2010, at projected start-up capacity of 1.5Mlb p.a., potentially increasing to 4.5Mlb p.a. Plant from Beverley Uranium Mine proposed to be used to process ISL solution, subject to agreement between parties. Alliance anticipates the following: Decision to Mine anticipated in Start-up capital estimated in the order of A$20 to A$25 million. Operating costs dependent on outcome of FLT, e.g. well field pattern, drilling depth, pore volumes, plant throughput, etc. Page 20

22 MALDON PROJECT: Gold Strategy: Prove the concept that Maldon can be profitably mined using minimal capital outlay Alliance (100%) 30km SW of Bendigo in central Victoria Historic production 1.75 M oz Targeting high-grade, narrow vein gold lodes Decline in progress (1200+m completed) Fully owned CIL plant Page 21

23 WARRINA PROJECT: Copper-Gold BNW01 drilled & returned low Cu-Au-U ABNE02: Cu to 0.17% from m BNE03 untested Alliance (100%) Located within Gawler Craton in South Australia Targeting IOCG (Olympic Dam style) mineralisation under cover Two large magnetic & gravity complexes: Copper to 0.17% intersected in 2003 Follow up drilling scheduled in 2Q 2008 Page 22

24 REASONS TO INVEST Four Mile (AGS 25%) is emerging as a world-class high-grade uranium deposit JV partner affiliated with Heathgate considered world s best practice in ISL mining Uranium concentrate production proposed to commence 2010 Potential access to existing infrastructure = low capital cost start-up Expanding resource base with excellent regional exploration potential Project supported by South Australian state government Alliance also is in development for gold at Maldon in Victoria and actively exploring for IOCG deposits in South Australia Page 23

25 Suite 3, City Road Southbank, Victoria 3006, Australia T: , F: Page 24