Alkane lifts guidance again

A STRONG quarter at the Tomingley gold mine in New South Wales has resulted in a guidance increase by owner Alkane Resources.
Alkane lifts guidance again Alkane lifts guidance again Alkane lifts guidance again Alkane lifts guidance again Alkane lifts guidance again

Alkane's Tomingley gold operations in NSW

March quarter gold production was 16,040 ounces at site costs of A$803 an ounce and all-in sustaining costs of $997/oz.

Guidance for the 2021 financial year has again been increased to 50,000-55,000oz of gold at AISC of $1400-1550/oz.

Tomingley's guidance was last increased in January to 47,000-52,000oz at AIDC of $1450-1600/oz from 45,000-50,000oz at $1450-1600/oz.

Alkane sold 15,844oz of gold during the quarter at an average price of A$2203/oz for revenue of $34.9 million.

The company had cash, bullion and listed investments of $72.4 million at the end of March, including a 9.8% stake in Calidus Resources and 19.9% stake in Genesis Minerals.

On the development front, Alkane expects to release feasibility studies for its San Antonio and Roswell deposits, part of the Tomingley extension project, next month.

The plans will incorporate open pit and underground mines.

The company is working on securing NSW government approvals for the projects, which have a combined resource of over 1 million ounces of gold.

Results from drilling at the Northern Molong project, which hosts the Boda and Kaiser discoveries are also due in May.

Shares in Alkane fell 1% to 75.7c, valuing the company at about $450 million.