Alkane lifts guidance

ALKANE Resources’ Tomingley gold mine in New South Wales performed ahead of guidance in the September quarter, resulting in a lift in full-year guidance.
Alkane lifts guidance Alkane lifts guidance Alkane lifts guidance Alkane lifts guidance Alkane lifts guidance

The portal at the new underground operation at Tomingley

Tomingley produced 7497 ounces of gold from low-grade stockpiles ahead of a transition to underground mining.

Site operating costs were A$1000 an ounce with all-in sustaining costs of $1268/oz.

Guidance has been increased to 30,000-35,000oz at AISC of $1250-1400/oz from 27,000-32,000oz at AISC of 1300-1450/oz previously.

Underground development remains on schedule and on budget at over 300m per month with a single jumbo.

Additional ore to the original resource model has been identified, and together with a review of cut-off grades for stope design, shows the potential for increased tonnage and mine life extensions.

Alkane is also progressing approvals for future mine development to the south of Tomingley and will spend $4.5 million on additional underground equipment and supporting infrastructure as soon as approvals are received.

The company sold 6997oz at $2151/oz for revenue of $15 million.

Site operating cashflow was $4.8 million.

Alkane has cash and bullion of $73.9 million at the end of September, comprising $53.5 million in cash, $4.9 million in bullion, and $15.5 million of listed investments at market value, including stakes in Calidus Resources and Genesis Minerals.

Alkane shares have more than doubled since early September due to the discovery of copper-gold porphyry mineralisation at the Boda prospect in NSW.

Drilling hit 502m at 0.48 grams per tonne gold and 0.2% copper from 211m.

Alkane also owns the construction-ready Dubbo zirconia project in NSW, but is considering a demerger and ASX listing of Australian Strategic Materials.

Alkane shares opened 2.4% higher at 84.5c, a new seven-year high.