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Additional Information

Market:	ASX
Sector:	General Mining
EPIC:	ALK
Latest Price:	1.17 (-2.49% )
52-week High:	2.63
52-week Low:	0.91
Market Cap:	316.11M

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Alkane Resources Full Alkane Resources profile here

Alkane Resources (ASX: ALK) is a multi commodity mining and exploration company focused on the Central West of New South Wales, Australia. Alkane's shares are also listed as American Depository Receipts (ADR's). The company has built a gold resource inventory of over 1 million ounces at McPhillamys near Orange in a venture with Newmont Australia.

The Company has an advanced feasibility study in progress for the development of the Dubbo Zirconia Project which is based upon a very large in-ground resource of the metals zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements.

Alkane Resources delivers significant gold intercepts at South Caloma

Thursday, February 25, 2010

Shares in multi-commodity explorer and miner Alkane Resources (ASX: ALK) shot up 10% after the company reported on significant gold intercepts at South Caloma, located in the central west of New South Wales.

Forth-three aircore holes have been completed at the new South Caloma target, about 250 metres south of the planned Caloma open pit.

Significant gold mineralisation has been intersected and results include PE 585 4 metres grading 5.22g/t gold from 45 metres; PE 587 11 metres grading 8.36g/t gold from 57 metres; PE 593 6 metres grading 6.63g/t gold from 51 metres and PE 595 12 metres grading 3.86g/t gold from 39 metres.

During the morning trade, shares in the Perth-based company were trading 3c higher to 33c, with the results continuing to demonstrate the potential of the area to host additional mineralisation.

Alkane is undertaking a review of the feasibility study is underway with focus on improving the TGP’s economics through definition of additional open pit and underground resources.

The TGP is located in the Central West of New South Wales, about 400 kilometres northwest of Sydney. The Project is centred on three gold deposits Wyoming One, Wyoming Two and Caloma, located 14 kilometres north of the Company’s Peak Hill Gold Mine.

The initial base case development model for the project comprises three open pit mines with gold production through a conventional Gravity-CIL gold recovery circuit at a mining rate of around 1.0 million tonnes per annum and production of an average of 50,000 ounces per annum for about six years.

Over several years, including experience in developing the Peak Hill Gold Mine, Alkane has built a substantial resource base and is proceeding towards several developments.

Near Orange, the Company has a joint venture (ODEJV) with Newmont, one of the world’s largest gold miners, which resulted in the discovery in 2006 of a significant gold deposit at McPhillamys within the Moorilda Project. This discovery includes intersections of 123 metres grading 1.96g/t gold and 77 metres at 1.65g/t gold within a 600 metre by 200 metre mineralised zone.

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