Alkane firms up Tomingley Extension

ALKANE Resources has boosted the indicated resource for its Tomingley Extension project in New South Wales ahead of the completion of feasibility studies.
Alkane firms up Tomingley Extension Alkane firms up Tomingley Extension Alkane firms up Tomingley Extension Alkane firms up Tomingley Extension Alkane firms up Tomingley Extension

Drill core from Tomingley in NSW

Staff reporter

The completion of an additional 37,000m of drilling at the San Antonio deposit saw the resource updated to 7.3 million tonnes at 1.72 grams per tonne gold for 406,000 ounces.

Importantly, 347,000oz at 1.82gpt gold is now in the indicated category.

The previous 453,000oz resource was all inferred.

The total Tomingley Extension resource now stands at 1.06 million ounces at 1.9gpt gold, comprising 871,000oz at 1.96gpt gold in the indicated category.

 "The updated San Antonio resource delivers us the opportunity to achieve a further 10-plus year mine life for Tomingley," Alkane managing director Nic Earner said.

"The combined resources for both Roswell and San Antonio are over 1 million ounces, and over 80% of those ounces are in the indicated category. This gives us a very solid footing from which to finalise the mine plans for economic assessment.

"This assessment, combined with stakeholder feedback from consultation and environmental reports, will allow us to progress to the next stage of planning approval with the submission of the environmental impact statement."

Detailed mine plans for open cut and underground mines at San Antonio and Roswell will be released later this quarter.

The San Antonio resource remains open at depth, with a focus on the high-grade gold structures within the western monzodiorite and the extension of the northern andesite to the Rosewood Fault, where drilling is restricted due the location of the Newell Highway.

Drilling is continuing at San Antonio and on other regional targets.

"We continue to explore in the region around Tomingley, as well as making small extensions to the known deposits underground," Earner said.

"The area is highly prospective and we are looking to growing the resources further as our exploration program continues."

The Tomingley gold operation is set to produce 47,000-52,000oz of gold this financial year at all-in sustaining costs of A$1450-1600 an ounce.

Shares in Alkane rose 1.5% to 78c yesterday, valuing the company at nearly $464.4 million.