Friday, 29 June 2012

Dubbo possible Rare Earth Demand raised by Chinese Government.

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Dubbo possible Rare Earth Demand raised by Chinese Government.
1 billion dollar Plan on Dubbo project...

Strategic significance of the DZP heavy rare earth production

watch this video first : 
click link below
The Chinese government released a White Paper on 20 June 2012 assessing the current state of development of its rare earths industry and confirming its intention to implement sustainable development for the industry.

The paper affirms the increasing scarcity of rare earths, particularly the heavy rare earths, which is relevant as Alkane proceeds towards development of its Dubbo zirconium, niobium and rare earth project, and the strategic value of that production which is anticipated by end 2014.

Ian Chalmers, managing director, told Proactive Investors today that the company is talking to strategic Chinese partners with existing HREE separation facilities. "When separated Alkane can derive a much higher yield compared to a concentrate product."

A deal with a Chinese partner should be completed in around a month.

Chalmers added that Alkane has already secured offtake partners for all of the zirconium and niobium - and with first production forecast for the end of 2014 - Alkane will be supplying nearly 10% of the world's zirconium.

Alkane Resources (ASX: ALK, OTCQX: ANLKY) has delivered the enticing potential of a resource expansion at the Dubbo Zirconia Project - which already has a world class resource of zirconium, hafnium, niobium, tantalum, yttrium and rare earths.

Additional drilling will need to continue before a resource can be defined, but highlighting the upside an exploration target of 40 million tonnes has been identified.

The rare earth distribution at Railway is about 30% heavy rare earths and 70% light
rare earths, slightly higher than Toongi which has a 25% / 75% distribution.

Where the story gets really interesting for Alkane is that the reserves will support an initial 36 year open pit life at 1 million tonnes per annum production - and the additional potential from Railway could add to the already long life Toongi
resource/reserve base.

If you are interested in DUBBO and what was and is happening there, its worth looking at this video..
Yes it was done in 2010 but still shows a great map of developments and what dubbo has in the ground.

source : Proactive Investors