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ALK, ALKANE RESOURCES LIMITED
vegemite
post Posted: Mar 26 2009, 07:55 PM
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In Reply To: watchmaker's post @ Feb 18 2008, 07:27 PM

March 24, 2009


Alkane Resources Shows Every Sign Of Re-Awakening After A Bit Of A Snooze And A Few False Starts
By Our Man in Oz

All investors like to think they can double their money in little more than a year. With Alkane Resources, a small Australian exploration-focused company, they have a better than average chance, especially if plans to re-start gold production next year run to schedule. High gold prices, and a low Aussie dollar, have added significantly to the profit margin available at Alkane’s “revival project” at Tomingley in western New South Wales. At the current Australian gold price of A$1350 an ounce Alkane’s margin is close to A$800/oz, turning the relatively small 60,000-to-70,000 ounce-a-year open pit development planned for Tomingley into a cash cow spinning off up to A$56 million a year, and delivering a capital cost payback in less than 12-months.
For long-term followers of Alkane there is more riding on Tomingley than the start of a new mine. Not only will it be the first gold production since the company mothballed its one-time flagship mine at Peak Hill, 12 kilometres to the south in 2005, but it will set-up Alkane for something much bigger in the future. That could come from more gold via what appears to be a world-class discovery in association with the big U.S. goldminer, Newmont, or in the production of a cocktail of zirconia and other metals from its nearby Dubbo polymetallic project. Either way, Alkane is a company showing every sign of re-awakening after a bit of a snooze, and a few false starts.

Tomingley, the project likely to replenish Alkane’s bank account, is in the final stages of a definitive feasibility study which is expected to be wrapped up by July. Detailed plant design is underway with the project likely to be a “plain vanilla” carbon-in-leach operation processing around one million tonnes of ore a year for the recovery of between 60,000-and-70,000 ounces of gold at a cash cost of A$550/oz. It helps that the mine is located in well-established farming country with grid power, highways, water and a willing workforce on the doorstep. If there is a criticism of Tomingley it’s the time taken to get to the launch pad.

“We have had a few delays along the way,” said Alkane managing director, Ian Chalmers, when Minesite’s Man in Oz called for a chat last week. “But, we’re well within sight of completing the definitive feasibility study. Mine planning and scheduling is underway, along with detailed plant design. Land access issues, water supply and power supply are in hand. On the current schedule we will be lodging a complete environmental assessment and development application by mid-year, investigate financing options and make a development decision in the third quarter, with first production in the third quarter of 2010.”

Financing will not be an obstacle to Alkane making its return as a producer. Investment banks are kicking doors down in Australia in their hunt for emerging goldminers. “It’s not a big issue,” Chalmers said, and neither should i be even if the Australian gold price contracts sharply. In examples Chalmers has used in presentations two lower gold price assumptions are used. At A$1150/oz Tomingley’s annual operating margin is A$42 million. At A$950/oz the margin falls to A$28 million – or a capital cost payback in two years rather than one year as it now stands.

More interesting is the conversion of those margins into theoretical value per share to Alkane, a stock which last traded at A21.5 cents. At the lowest margin assumption based on a gold price of A$950/oz the A$28 million margin is the equivalent of A37 cents per Alkane share. At the A$1150/oz gold price the value equates to A65 cents per Alkane share, and at A$1350/oz it is A94 cents per share – or 4.3 times the current share price. No-one is saying rush out and load up with Alkane paper, but there is no denying that Tomingley is shaping as the project which will “re-birth” a company which has been around for 29 years, and assembled a wealth of mining knowledge and survival skills.

Also, if the shift back to production at Tomingley isn’t sufficient reason to blow the dust off your Alkane file there are the other two projects lurking in the background. Dubbo, which is potentially one of Australia’s more interesting mineral processing adventures, continues to make progress at a demonstration plant at Australia’s nuclear research facility at Lucas Heights. High levels of uranium in the ore have determined the location of this process-testing, but the real key will be demand for zirconia, niobium and rare earths. Samples are being distributed now to potential buyers (and investors), but Dubbo as yet remains a sleeper in the Alkane portfolio.

More likely to make brisk progress is the Moorilda gold project which includes the McPhillamys discovery Alkane has put into a joint venture with Newmont. Drilling continues at the discovery site which a “near-ologist” would say is in the same vicinity as the 50 million ounce Cadia Valley mines of Newcrest. Latest drilling results include more monster hits such as a 236 metre zone assaying 1.23 grams a tonne of gold starting at a depth of 219 metres. Another hole assayed 0.64 grams a tonne across 304 metres.

Those drill hits, when combined with earlier results, point to McPhillamys possibly becoming a very large, low-grade, mining operation. Newmont certainly seems to share that view having exercised a right to take control of the exploration process from January 1, a decision which is both a plus and a minus. The negative aspect is that it means news flow from the project will slow down, and even if Newmont rates McPhillamys as one of its top five exploration targets in the world (which it does) then it will join an exploration and project development pipeline that suits Newmont. The good news is that at some point McPhillamys will emerge as a world-class development and Alkane will probably have a 25 per cent share of the action – which is another, longer-term reason, to take a fresh look at an old explorer that’s in the process of being revitalised.



 
watchmaker
post Posted: Feb 18 2008, 07:27 PM
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In reply to: CAINMAPLE on Monday 03/12/07 08:30am

It looks as if from today's announcement on Mcphillamy's they have discovered a sizeable amount of gold.

"Large Gold System Confirmed", reads the ASX release

 
legend
post Posted: Dec 20 2007, 11:13 AM
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In reply to: CAINMAPLE on Monday 03/12/07 08:30am

Good post Cainmaple. I have been with ALK for a long time and always thought I was on a good thing, even without the rare earth component. This info has crytallised that potential, and makes me feel even better about doubling my holding just a bit earlier today. I'm reinvesting my GEM cheque from the KIM debacle.

 
Guest_CAINMAPLE_*
post Posted: Dec 3 2007, 08:30 AM
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In reply to: Ruckmauler on Thursday 11/10/07 11:30am

Alkane's share price may be moving sooner than you think!!!!
------------------------------
Ruckmauler brought this Alkane Resource Investor article to the attention of HC Posters and investors on the 11th October.
http://www.resourceinvestor.com/pebble.asp...1&phrase=alkane
Resource Investor's Jack Lifton has subsequently produced a series of articles on Rare Earth Metals , the latest being the 29th November , in which Alkane is again mentioned .
http://www.resourceinvestor.com/pebble.asp?relid=38352.
--------------------------------------
Serious investors should take the time to read both these articles ---and get a better understanding of the growing need , importance and value of Alkane's Dubbo Zirconium and associated Rare Earths resource .

Lifton talks about the use of various Rare Earths by all producers in the automotive industry --especially neodymium.Zirconium is already widely used by Toyota in another aspect of the automotive industry .
In Alkane's latest September Quarterly Report, reference is made to Ansto broadening the near finished Demonstration Plant , to also extract neodymium --amongst its multiple extraction of various Rare Earths .

The Dubbo Demo Plant ( co -built by Ansto at Lucas Heights) should be operating soon , with its trial products commencing distribution early in 2008.
The automotive industry is just one of the multi uses of Zirconium and Rare Earths ---but the increasing demands in new age hybrid cars , as just one of many purpose usages, is very substantial .
Alkane has a great suite of resource interests --, apart from Dubbo , it has iron ore with BCI, gold at Wyoming /Caloma in NSW, gold /zinc with its joint venture with Newmont at Mcphillamy's NSW , copper/gold at Galwadgere in NSW, and maybe a 'sleeper'in a JV Nickel / Gold tenement with Jubilee at Leinster in WA .

Dubbo, Wyoming/Caloma and Mcphillamy's are all steadily progressing , and its no wonder that an astute investor like Ian Gandel has booked an early first class seat in the front row of investors .

The start up of the Demo Plant for Dubbo Zirconium and Rare Earths may really start to fire up interest in Alkane--and very, very soon!!!!!!!!!!
Do yourself a big favour , and check out these articles from Resource Investor . Alkane's current capital raising at 32c might seem a very inexpensive and wise investment in a few months time .




 
Ruckmauler
post Posted: Oct 11 2007, 11:30 AM
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In reply to: Ruckmauler on Thursday 11/10/07 11:28am

Also some more REE in-depth information here -

http://www.resourceinvestor.com/pebble.asp?relid=36382

 
Ruckmauler
post Posted: Oct 11 2007, 11:28 AM
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In reply to: ShareScene.com on Tuesday 10/07/07 11:50am

INTERVIEW WITH ALKANE RESOURCES (ALK)
MANAGING DIRECTOR, MR IAN CHALMERS


10 October 2007 (5.00pm, EST)
MoneyMajix


Good afternoon, Mr Chalmers

I WAS INTERESTED TO SEE THE INCREASE IN THE ALKANE SHARE PRICE TODAY. IT WAS UP ALMOST 25% TO 36 CENTS.

WHAT DO YOU THINK HAS PROMPTED THIS MOVEMENT?
WAS IT RECENT MEDIA IN THE US?

I am not sure but Alkane was favourably mentioned at
http://www.resourceinvestor.com/

Maybe US investors were buying overnight.

In the past, Alkane has had more positive exposure overseas than in Australia.
This may be one of the reasons Alkane is so undervalued, in my opinion.


WHAT PROGRESS IS BEING MADE WITH ALKANE’S VARIOUS PROJECTS?

Firstly, there is the Tomingly Gold Project in central west, NSW.

This is an exciting project and a feasibility study for development is being undertaken.

We have found a new deposit called Caloma about two to three months ago which is part of the bigger project. This pushes the resource potential to about one million ozs.

Previously identified is 600,000 ozs. That is drilled out to resource status and it contains near 75% in Measured and Indicated, and not a figment of my imagination.


HOW WOULD YOU VALUE THE TOMINLGY GOLD PROJECT RESOURCE?

Conservatively, some analyst value resources at around $100 per oz., so on the 600,000 ozs., gives us a valuation of $60,000,000.

It you take it as 1,000,000 ozs., then the value would be $100,000,000.

This project is 100% owned by Alkane Resources.


CAN YOU DISCUSS THE ZIRCONIA PROJECT AND EXPLAIN A BIT THE USES OF ZIRCONIA?

Alkane also owns 100% of a rare metal-rare earth deposit near Dubbo, which we call the Dubbo Zirconia Project, but which contains several metals including zirconium and niobium, as well as rare earths.

Some people would think of fake diamonds when they hear about zirconia but zirconia has a huge spectrum of uses.

It is used as a drying agent in paint, and replaces lead, so it is environmentally friendly.

It is also used in electronics, catalysts, ceramics and many computer components.

A demonstration plant will be starting in November which will produce several tonnes of sample products for distribution to potential customers.

The article in the US referred to the other part of the project in Dubbo which is Rare Earths. These also have a great spectrum of uses, including special magnets which are an important component of hybrid electric car motors.

The deposit is very large and an open cut mine here could last 200 years.

The feasibility study is ongoing and we won't be able to make a decision about the project until next year.


CAN YOU PROVIDE US WITH SOME DETAILS OF YOUR JOINT VENTURE WITH NEWMONT MINING?

Yes. We are very excited about it. The joint venture is in the Orange area, near Newcrest's large Cadia operations. We are exploring and it is early days.

However, last year we announced some spectacular gold intersections but there was not much market reaction at the time.

We have a lot of work to do there but it does look encouraging.


ALKANE HAS A SIZEABLE HOLDING IN BC IRON.

Yes. We floated BC Iron and we are still hold shares in the company.

The value of that holding is around $17 million dollars at today's share price.


ALKANE HAS COPPER INTERESTS, TOO?

Yes. We have a small copper deposit near Wellington which we hope to do some more work on later this year or early next year. We want to see if we can expand the resource and progress towards development.


DO YOU THINK THE MARKET HAS PLACED A REASONABLE VALUATION ON THE ALKANE RESOURCE SHARE PRICE?

At the current share price of 36c the company is valued at around $70 million.

We have a value of $17million just for our holding of BC Iron.

So that values the resource assets at less than $53 million, which in my opinion barely values the Tomingley Gold Project.


WHY WOULD YOU SUGGEST PEOPLE BUY SHARES IN YOUR COMPANY?

That's always a tricky question for a company Managing Director, but the current attraction of Alkane is it's multi commodity resource base, focussed within a relatively small area in central NSW, and with a very good chance that at least two projects could proceed towards development in the next two to three years. That would see us back into cash flow and hopefully profits.



Mr Chalmers, thank you for your time this afternoon.

It sounds like there is a lot going on and more news will be forthcoming to the market in the future.

 

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ShareScene.com
post Posted: Jul 10 2007, 11:50 AM
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Topic rename

From:
ALKANE EXPLORATION LIMITED (ALK) 

To:
ALKANE RESOURCES LIMITED (ALK) 

Thankyou
Sharescene.com

 
noosaman
post Posted: Jul 3 2007, 12:02 PM
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In reply to: Sky Rocket on Tuesday 22/05/07 09:56pm


ALK is featured in this weeks Bulletin by the Speculator . Interest will be shown in this stock as his readers follow his lead.


This week's forthcoming Bulletin magazine on sale Wednesday introduces a new zinc hopeful to the Speculator's portfolio.

OLD DIGGER GETS A NEW NAME: Alkane Exploration (Terrigal) NL was formed in 1969 to take over the interests of Central Coast Oil, a company that had been searching fruitlessly for oil and gas in NSW since 1955. By 1982, the "Terrigal" was dropped when hydrocarbon hopes were abandoned and the company turned to gold prospecting which, at least in some years, turned out to be profitable.

Now the venerable company is changing its name again to Alkane Resources Ltd (ASX code stays the same ALK), with four key projects underway in central western NSW, all within 150km of each other:

- The Tomingley gold project, where a feasibility study is due later in 2007 for a proposed one million tonnes/year open pit followed by an underground operation

- Dubbo zirconia project, claimed to be the largest zirconia deposit in the world, with a potential 250-year mine life, a planned demonstration pilot plant for 2007, followed by a feasibility study on a development decision by mid-2008

- The Galwadgere copper project where a joint venturer may be sought, and

- The McPhillamy's gold discovery within 20km structural corridor which offers a larger resource than Tomingley but in joint venture with Newmont.

Alkane has traded up from a year's low of 14.5c to a recent high of 45c and at last week's close of 42c carried a market capitalisation of $84.4m.



 
RADIO
post Posted: May 24 2007, 10:37 AM
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user posted image
Recent ShareScene.com Radio Broadcast (23/05/2007 10:30:00):
ALK - Paydirt Gold Conference Presentation - Mr Ian Chalmers, MD

N.B. ShareScene.com Radio can normally be accessed by the 'RADIO' link, top of every page.
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ShareScene.com Radio delivers investor presentations from ASX listed companies. Keep up to date with the latest corporate dealings of the shares you follow. Hear news direct from the source. Listen to directors and investor relations mangers discuss their company, give investor updates and brief on current results. ShareScene.com Radio keeps you informed about company announcements and events, and provides you daily market wraps and industry discussions.
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Sky Rocket
post Posted: May 22 2007, 09:56 PM
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In reply to: dm9k on Tuesday 02/01/07 01:14pm

shooting star directors buying !!!

Don't miss the early warning signs !!

Long time between drinks on this tread but if there was you would have probably missed the boat .

Load up while you can this baby is about to run

Good Luck to all holders


 
 


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