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  • Alkane Resources Starts Approval Process For Dubbo Zirconia Project 0 comments
    Jul 1, 2013 1:29 AM

    Multi commodity company, Alkane Resources (ASX: ALK), has reached a key milestone for its Dubbo Zirconia Project to achieve production in 2016, by submitting an environmental impact statement to the NSW Department of Planning and Infrastructure.

    Dubbo is located in central west New South Wales and the EIS covers 14 separate areas of study, incorporating the expertise of 15 separate specialist consultants.

    If the indicative timetable is achieved, it may lead to government approval in March 2014, enabling construction to begin then and lead to production starting in early 2016.

    Alkane is currently constructing the nearby Tomingley gold mine and this, combined with the DZP, involves around A$1 billion of capital expenditure over the next two years and creation of over 900 jobs across construction and operations.

    The financing program for the DZP is currently in progress and progressively over the next two years Alkane will convert existing MOUs for production from the project into formal joint ventures and off-take agreements.

    The recently revised definitive feasibility study for the DZP, which Alkane said described a "technically and financially robust project", is a model based on a 20-year life and 1Mtpa production, indicating total EBITDA of A$5.23 billion and NPV of A$1.23 billion.

    The DZP contains metals zirconium, hafnium, niobium, tantalum, yttrium and rare earths elements, with likely revenue proportions being approximately 31% zirconium, 30% heavy rare earths, 24% light rare earths and 16% niobium.

    Alkane sees additional value from the DZP with its projected mine life being over 50 years beyond the period of the DFS.

    Production from the DZP will make Alkane a significant and long term supplier to world markets of zirconium and heavy rare earths.

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