The Gold Report Interview with Stephan Bogner (7/15/13)
"I am positive that Australia-based Alkane Resources Ltd. will bring into production its Dubbo REE project in New South Wales in early 2016. Management is right on track demonstrating how to successfully develop a large deposit into a profitable mine quickly, namely with MOUs, agreements and strategic alliances. Dubbo represents a world-class deposit enriched with zirconium, hafnium, niobium, tantalum, yttrium, as well as LREEs and HREEs. Alkane already seems to have found the right partners to advance this project. The financing of around $1B is planned to be arranged by Sumitomo Mitsui Bank of Japan, Credit Suisse Australia and Sydney-based Petra Capital, and is expected to coincide with the final project approvals, allowing mine construction to commence in Q2/14.
"Alkane's Definite Feasibility Study of April 2013 shows Dubbo being a 'technically and financially robust project.' A base case of a 20-year mine life gave a net present value of $1.23B, yet mine life is likely to be in excess of 70 years, which makes this deposit an important strategic asset for REE world supply. What makes Alkane a great investment today is that shareholders do not have to wait two or three years until REE production at Dubbo starts; shareholder value is likely to be increased substantially within the next few months as construction on the company's Tomingley gold mine is underway and commissioning is anticipated in late 2013. With a resource of 800+ Koz, a head-grade of 2 g/t, a yearly gold production of around 50 Koz for a minimum of eight years and operating costs at only $1,000/oz, this project is set to generate important cash flow in the near future to advance the Dubbo project successfully without the need for excessive dilution."
The Metals Report Interview with Jack Lifton (7/9/13)
"I'm very impressed by what I know of Alkane Resources Ltd.'s business model. Alkane is a polymetallic producer and its mix of metals, which includes zirconium, niobium, yttrium, REEs and gold, has allowed it to minimize the risk of depending entirely on REE production. Alkane is making a series of individual offtake agreements with separate vertically integrated refiners who themselves are also downstream end users and marketing experts in the products for which Alkane will provide the feedstock. This is an outstanding 21st-century business model that has allowed Alkane to create a synergistic revenue stream. In a sense, Alkane has become a mini-Glencore International Plc (GLEN:LSE), a vertically integrated trading company. This is a business model that I urge juniors with polymetallic deposits to emulate."
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