NOLANS PROJECT UPDATE Brian Fowler - General Manager NT & Sustainability 8 October 2015 Arafura Resources Limited (ASX: ARU) OVERVIEW Arafura is planning a open cut rare earth mine and processing operation on Aileron Station After processing, the rare earths will be taken by train to Darwin and shipped overseas for final separation into five rare earth products Ore types Arafura Resources Limited (ASX: ARU) Final Rare Earth products 2 FROM MINE TO MARKET Arafura Resources Limited (ASX: ARU) 3 ON AILERON STATION, NEAR THE ROADHOUSE 10km to Processing Site Arafura Resources Limited (ASX: ARU) 10km to Mine Site 4 RARE EARTH MAGNETS Rare Earth (RE) magnets are 3 times stronger and 1/10th the size of conventional magnets They are one of the reasons why everyday items have become smaller, lighter, mobile, more efficient and more affordable The key REs in RE magnets are Neodymium and Praseodymium – NdPr Nolans is highly enriched in NdPr Arafura Resources Limited (ASX: ARU) 5 NOLANS IS CLOSE TO TRANSPORT, ENERGY & WATER INFRASTRUCTURE Arafura Resources Limited (ASX: ARU) 6 MINING & PROCESSING AT NOLANS Arafura Resources Limited (ASX: ARU) A$1,200 million capital spend ~400 jobs in operations 7 ENVIRONMENTAL IMPACT STATEMENT This year we are doing studies as part of our EIS to look at: plants and animals ground and surface water dust, noise and vibration waste management (rock and tailings/residues) radiation transportation mine closure and rehabilitation social impact Arafura Resources Limited (ASX: ARU) 8 ANIMAL SURVEYS Black Footed Rock Wallaby Mulgara Great Desert Skink Arafura Resources Limited (ASX: ARU) 9 GROUNDWATER STUDIES (1) Arafura has defined an extensive, high-yielding groundwater system SW of Nolans Site on Aileron & Napperby stations 26 exploration & investigation bores drilled, and our studies of the system are ongoing Aquifers are recharged from rainfall and seepage Catchment separated from Ti Tree Basin Arafura Resources Limited (ASX: ARU) 10 GROUNDWATER STUDIES (2) Multiple productions bores east of Day Creek will be used to reduce drawdown Monitoring bores will be drilled to safeguard other users and manage the aquifers Aquifers will sustain the Nolans Project planned usage and other local groundwater users Production water bores are shown as yellow dots. Black squares are exploration bores. Airborne geophysical colour image indicates high potential areas (blues= high potential; red = low potential) for buried groundwater aquifers Arafura Resources Limited (ASX: ARU) Groundwater extraction licence application lodged with Department of Land Resource Management 11 GROUNDWATER STUDIES (3) The borefield area is small part of a very large system of connected groundwater basins Arafura Resources Limited (ASX: ARU) 12 ENVIRONMENTAL BASELINE MONITORING 26 monitoring sites have been established on or around Nolans At these sites we are measuring natural radioactivity in soil, plants and in the air We also have 16 monitoring sites in creeks to measure water quality & flow information Many of these sites have been in place since 2010 Arafura Resources Limited (ASX: ARU) 13 STAKEHOLDER CONSULTATION We have been meeting with stakeholders since 2008 Most of our work this year is EIS studies We will hold community information days in Ti Tree and Alice Springs Arafura Resources Limited (ASX: ARU) 14 OPPORTUNITIES FOR THE REGION & NT Now Construction Operations Jobs Limited Mine, plant & building workers’ camp Mine, plant & services operations Training Limited Apprenticeships, work ready programs Apprenticeships, work ready programs Business Opportunities Contractor & consultant hire, equipment & supplies Operations services, equipment & supplies Operations support services, equipment & supplies, logistics Sponsorship & Trust Sponsorships Sponsorships Sponsorships, community benefits trust Environmental Work experience, rangers helping with studies Work experience, rangers helping with studies Ongoing monitoring and land management programs Infrastructure Transportable buildings on site Roads, borefields, power & communications Opportunities for regional power, water Royalties & Taxes CLC exploration agreement CLC mining agreement Community benefits package for traditional owners Arafura Resources Limited (ASX: ARU) 15 KEY MESSAGES Arafura’s operations in Central Australia will be the foundation for secure supply of magnet-feed rare earths to the world Nolans is a major project with significant logistics & infrastructure requirements Nolans EIS studies are underpinned by solid science & long-term data collection Arafura is serious about consulting with its stakeholders and Nolans can be an enabler for long-term business & community opportunities in the region Targeting Project approvals second half of 2016 for first production from Nolans this decade Arafura Resources Limited (ASX: ARU) 16 NOLANS DEVELOPMENT REPORT Detailed description of Arafura’s plans to develop the Nolans Rare Earths Project 120+ pages fully referenced Released September 2014 Download from www.arultd.com Arafura Resources Limited (ASX: ARU) 17 THANK YOU Questions? Arafura Resources Limited (ASX: ARU)
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