Modest March quarter delivered by Alkane as new developments expedited

ALKANE Resources is expediting the move to new mine developments at two prospects in New South Wales as it delivered a projected modest March production quarter at Tomingley that involved pouring 5723 ounces, selling 3864oz and generating site cashflow of A$1.8 million.
Modest March quarter delivered by Alkane as new developments expedited Modest March quarter delivered by Alkane as new developments expedited Modest March quarter delivered by Alkane as new developments expedited Modest March quarter delivered by Alkane as new developments expedited Modest March quarter delivered by Alkane as new developments expedited

Not a huge amount of gold was poured at Tomingley in the March quarter

The expectation is that open pit and underground mining will be viable at the Rosewell and San Antonio deposits, with Alkane current awaiting approval to develop an exploration drive.

Last week Alkane reported an inferred estimate for San Antonio totalling 453,000oz, taking resources in the region past 1 million oz.

On the production front, guidance for the financial year remains unchanged at 30,000-35,000oz at all-in-sustaining costs of $1250-1400/oz.

Meanwhile, the company said it is considering to monitor timing of the demerger of its zirconia offshoot, Australian Strategic Materials, given "very turbulent market conditions".

And it expects to provide an update and budgeting for follow-up drilling at the promising Boda gold-copper discovery by the end of June.

Alkane finished the March quarter with cash, bullion and listed investments totaling $82 million.

Shares in Alkane were trading at 74.5c early this week, capitalising the company at $432 million.