www.alkane.com.au
Alkane Resources (ASX: ALK) is a multi commodity mining and exploration company focused on the Central West of New South Wales, Australia. Alkane's shares are also listed as American Depository Receipts (ADR's). The company has built a gold resource inventory of over 1 million ounces at McPhillamys near Orange in a venture with Newmont Australia.
The Company has an advanced feasibility study in progress for the development of the Dubbo Zirconia Project which is based upon a very large in-ground resource of the metals zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements.
Alkane Resources adds rare earth circuit at Dubbo plant
Alkane Resources (ASX: ALK) has started larger scale production of an yttrium heavy rare earth concentrate from the new rare earth circuit at its Demonstration Pilot Plant (DPP) at ANSTO as part of the Dubbo Zirconia Project (DZP) in New south Wales.
The company considers the development as an important commercial step for the DZP. The yttrium concentrate will be distributed to potential customers worldwide for review and assessment.
Recent developments by China, the world’s largest producer of rare earths, has resulted in restricted availability of rare earth products and escalating prices for these outside of China.
This has seen the rare earth basket of prices within the DZP climb dramatically in 2010 to $27.76 for LREE, and $63.80 for YHREE in early August.
The yttrium and heavy rare earth distribution in the ore body is unusual with 25% in the heavy category (standard distribution 95% light and 5% heavy) with this generating a higher than average return for the rare earth product.
These developments emphasise the strategic significance of the DZP as a supplier of yttrium and rare earths, as well as increasing sales revenues for these products to over 40% of total DZP revenues.
The Demonstration Pilot Plant (DPP) at ANSTO has been operating since 2008 and has proven the flow sheet for the DZP. Substantial zirconium and niobium products have been distributed to potential customers around the world.
A development commitment for the DZP is anticipated in early 2011. The DZP is one of three key projects being undertaken by Alkane in the central west of New South Wales.
The other two projects include Tomingley Gold, which is the final stages of its feasibility study and McPhillamys Gold, Alkane's joint venture with Newmont Australia.
Newmont is proceeding to complete a Bankable Feasibility Study for the development of this deposit which has been described as one of the biggest NSW gold finds in the past decade.
Alkane has 249 million shares, a market capitalisation of A$103 million and $8.7 million cash with no debt.
