Alkane deal with Ziron Tech to reduce metallization costs in excess of 50% for zirconium, hafnium, and titanium metals
Alkane Resources Ltd. (ASX: ALK | OTCQX: ANLKY) is an Australian junior miner with a very promising rare earths project near Dubbo NSW Australia, and a ~40-50,000 ounce pa producing gold mine named Tomingley also in New South Wales, Australia. Add to this a farming business and an exciting new investment in a clean metal processing technology agreement.
Alkane invests in a clean, high purity processing technology from South Korea
Alkane recently executed a binding agreement with South Korea’s Zirconium Technology Corporation (Ziron Tech) to fund the final stage research and feasibility in relation to a clean metal process in their Dubbo Zirconia and Rare Earths Project. When fully commercialized, it is estimated the more environmentally sustainable process can reduce metallization costs by in excess of 50%. Yes 50%!
It appears investors don’t yet fully understand the potential of this technology as it can be game changing in terms of cost reduction and reduced emissions. Alkane states: “The Technology is viewed as having the potential to replace the Kroll process – a highly energy intensive process that has been used broadly in the industry since its development in the 1940s. As well as providing a more environmentally sustainable process, the Technology, when commercialized, is estimated to reduce metallization costs by in excess of 50%, and produces metals with very low levels of gases, particularly oxygen and nitrogen.”
The technology is in the form of a carbon-free process to convert metal oxides into metals through an electrolytic process and could provide a cost-effective and environmentally superior alternative to the traditional processes used in the making of high purity zirconium, hafnium, and titanium metals. Alkane says the technology is applicable to the majority of their Dubbo Project products, representing over 80% of the Dubbo Project forecast revenue streams.
Alkane’s managing director Nic Earner stated: “Once piloted and proven, we believe this technology has the opportunity to reshape the metallization industry for ASM’s key product lines, and we welcome the opportunity to build on the strong relationship we have formed with the Ziron Tech team over the last five years. This has the potential to be a breakthrough for ASM in its product marketing and will have obvious positive implications for the Dubbo Project economics.”
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Alkane will invest US$1.2 million that will go towards a pilot plant facility to complete late-stage piloting and Feasibility Study for larger scale development and commercialization of the process. The deal has the potential to increase the value of Alkane’s 100% owned Dubbo Project.
Alkane Resources flagship Dubbo Project
The Dubbo Project (DP) is a large in-ground resource of zirconium, hafnium, niobium, yttrium and rare earth elements, 25 kms south of Dubbo in central western NSW, Australia. It is the most advanced poly-metallic project of its kind outside China, making it a potential strategic and independent supply of critical minerals for a range of sustainable technologies and future industries. It has a potential mine life of 70+ years. With material off-take discussions underway, the project remains construction ready.
Dubbo Project Mineral Resources summary
Alkane Resources Tomingley gold operations are doing well
The Company’s Tomingley Gold Operations (TGO) also in New South Wales, announced gold production was above forecast for the quarter. The sale of 10,780 ounces of gold at an average price of A$1,882/ounce gave a revenue of A$20.3 million for the quarter. A total of 48,969 ounces of gold were poured for the financial year with an AISC of A$947/ounce. The increased production means the operating cost guidance has also lowered 9.5% to A$947 per ounce from A$1,050 per ounce and with Australian dollar gold price trading near record highs (A$2,000), Tomingley is producing solid cash flow.
In the last few weeks, a lot of the global discussions have been centered on rare earths and gold. Alkane Resources Ltd. has both. Now with a new agreement with Zirconium Technology Corporation they also have the potential for lower costs at their Dubbo Project and possibly higher earnings through global commercial rights and royalties if the new technology proves to be a success at scale. If that was not enough, the Company also has a good size farming business named the Toongi Pastoral Company in outback Australia.
Alkane Resources Ltd. is headquartered in Burswood Australia; and has a market cap of A$ 208 million.
Matthew Bohlsen is a Senior Editor for InvestorIntel.com. With a Graduate Diploma in Applied Finance and Investment (similar to CFA), and a Graduate Diploma in ... <Read more about Matthew Bohlsen>