Name of the Project
Dubbo zirconia project (DZP), New South Wales, Australia.

Location
New South Wales, Australia.

Client
Alkane Resources.

Project Description
The DZP is a development project based on one of the world’s largest in-ground resources of rare metals and rare earths.

A variety of rare-earth and metal concentrates will be produced, including zirconium, niobium, hafnium, tantalum, yttrium, europium, dysprosium and neodymium.

The DZP is expected to mine 19.5-million tonnes of ore over 20 years, producing 75 000 t/y of concentrate.

The project includes:
• a small opencut mine;
• processing and refining facilities, a plant and equipment, including a 90-m-high stack;
• chemical storage areas, including a tank farm;
• waste encapsulation cells;
• water and gas supply pipelines;
• road upgrades; and
• the potential reopening of the adjoining railway line.

While the project is proposed to operate for 20 years at the proposed extraction rate, the ore deposit will not be exhausted over this period. Consequently, there is potential for additional mining in future.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
The economics of the project were adjusted following the completion of the front-end engineering design (Feed) in August 2015. The Feed resulted in a capital expenditure adjustment, from the A$1-billion estimated in the 2013 definitive feasibility study, to A$1.3-billion, based on a higher Australian/US dollar exchange rate.

Duration
Not stated.

Latest Developments
Alkane’s Dubbo zirconia and rare earths project final land purchases were completed during the quarter ended June 2016, taking the total site area to 3 500 ha, with 500 ha required for operations, 1 000 ha allocated to biodiversity offsets and 2 000 ha to remain as mixed farming land.

The project is construction ready, pending financing, with financing discussions progressing further during the quarter.

Alkane has also reported that discussions are continuing with Vietnam Rare Earth JSC, following the signing of the letter of intent for toll processing of rare earths concentrate from Dubbo.

Other marketing efforts include a presentation on hafnium at the Minor Metal Trade Association yearly conference in Amsterdam, in the Netherlands, visits to key customers for Dubbo products in Europe and the US, and a presentation on zirconium products and the Dubbo project at the Ruidow Zircon Conference in Nanjing, China.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Alkane Resources, tel +61 8 9227 5677, fax +61 8 9227 8178 or email info@alkane.com.au.