The following interview of Managing Director Ian Chalmers of Alkane Resources (ASX:ALK | OTCQX: ANLKY) was conducted by phone and email on August 29th-Sept 1st, (EST) Alkane is a gold producer that has a very significant and advanced, world-class Rare Earth Elements "REEs" project that includes zirconium and niobium. The company has two strategic partnerships and is negotiating a host of corporate initiatives.
Can you describe Alkane's DZP project? How significant a project is it in the world?
Located 400km northwest of Sydney within a region that has substantial infrastructure - roads, rail, power, gas, people, being a large agricultural and mining area. The Dubbo Zirconia Project, "DZP" is a strategic and alternate source of heavy and light rare earths, plus zirconium and niobium products. The DZP can provide a long term supply of zirconium chemicals independent of the zircon supply chain, and critical rare earths not reliant on China. We have a very large polymetallic resource of the metals zirconium (hafnium), niobium (tantalum), yttrium and rare earths. Important, is the strategic metal mix - 25% of the rare earth portion of company-wide output is in the, "heavy" group.
Please speak a bit more about each of Alkane's most important products
Our flow sheet produces zirconium, niobium and light and heavy REE concentrates. DZP's tonnage is two-thirds zirconium which accounts for 31% of revenues. A light REE concentrate is projected to account for 20% of production and 24% of revenues, (of which 90% or 21.6%) comes from neodymium and praseodymium. Next, niobium accounts for 8% of production and 16% of revenues. Finally, heavy REE's account for 5% by volume and 30% of revenues, (of which 28.5%) are expected to come from yttrium, dysprosium and terbium.
- See more at: investorintel.com/rare-earth-intel/epste...
Disclosure: The author is long ALKEF.