Sign up Australia
Proactive Investors - Run By Investors For Investors

Alkane Resources discovers more gold at Tomingley after record production quarter

The El Paso prospect has the potential to host Tomingley-style gold deposits
Drilling at Tomingley

Alkane Resources Ltd (ASX:ALK) has discovered more gold at the El Paso prospect, which is located south of the gold producing Tomingley mine site in New South Wales.

Highlights include: 11 metres at 2.82g/t gold from 32 metres; with higher grade intersections such as 2 metres at 12.39g/t gold from 32 metres.

Mineralisation at El Paso was identified over a strike length of 1,200 metres, and remains open to the north.

READ: Alkane Resources upgrades gold production guidance

Alkane's broad spaced drilling programme has confirmed the area has potential to host Tomingley style gold deposits, and similar tenor results led to the Tomingley discovery and current mining operation.

Record gold production

Alkane delivered record gold production during the June quarter of 27,924 ounces at an all-in sustaining cash cost (AISC) of A$906 per ounce.

This brought the total FY2017 production from the Tomingley Gold Operations to 68,836 ounces with an AISC of A$1,335 per ounce.

FY2017 production comes in slightly ahead of recent guidance of 65,000-67,000 ounces at an AISC of A$1,300-$1,400.

The result was largely driven by a strong second half of production totalling 46,645 ounces with an AISC of A$1,038 per ounce.

Rising prices drawing attention to Dubbo Project

Moving to Alkane's Dubbo Project which remains construction ready, all State and Federal approvals are in place, with an established flow sheet and a solid business case.

Upward price movements in the zirconium chemicals and powders, and rare earth magnet markets are signalling renewed confidence in the sectors, with further increases anticipated during 2017.

The modularised build is being optimised and costed by Outotec to further support the bankability of the project, and assist with flexible financing options for construction.

View full ALK profile View Profile

Alkane Resources Ltd Timeline

Related Articles

Drilling at Coglia Well
May 10 2018
Pending exploration results combined with those from a second drill program should allow the company to establish a resource estimate.
farming tractor at work in a crop
April 11 2018
The front end engineering design (FEED) confirmed a post-tax NPV of US$902 million.
Picture of Teal Gold Project
April 10 2018
Management recently upgraded production guidance at the Teal Gold Project.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use