Proactiveinvestors Australia

Alkane is multi commodity mining and exploration company focused on the Central West of New South Wales, Australia.  The Company has built a gold resource inventory of over 1 million ounces and plans recommence operations in 2010 through a new development at Tomingley.  Alkane, in partnership with Newmont, has also made another significant gold discovery at McPhillamys near Orange.

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.

To see a map of the NSW projects please CLICK HERE

DUBBO ZIRCONIA PROJECT
Zirconium-hafnium, niobium-tantalum, yttrium-rare earths, uranium – NSW
Australian Zirconia Ltd (AZL) 100%

The Dubbo Zirconia Project (DZP) is located 30 kilometres south of the large regional centre of Dubbo in the Central West Region of New South Wales.  The DZP is based upon a large in-ground resource of the metals zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements.

Over several years Alkane has developed a flow sheet consisting of sulphuric acid leach followed by solvent extraction recovery and refining to produce several products.  This flow sheet is currently being trialled by a Demonstration Pilot Plant (DPP) to recover a suite of zirconium chemicals, zirconia, a niobium-tantalum concentrate and yttrium-rare earth concentrates which are used in the expanding ceramic, catalyst, electronics, rechargeable batteries and permanent magnets, engineering ceramics, and specialty glasses and alloys industries, as well as the nuclear power industry.

The DPP was constructed within the facilities of ANSTO Minerals, a business unit of the Australian Nuclear Science and Technology Organisation, and is one of Australia’s premier research facilities located at Lucas heights in the south of Sydney.  The DPP was commissioned in 2008 and has operated several campaigns to date producing over 1,000kg of zirconium chemicals and 250kg of niobium concentrate.

Test work to prove the recovery of yttrium and rare earths from the current flow sheet has continued in the laboratory at ANSTO and it is anticipated that addition of the YREE recovery flowsheet to the DPP circuit should be facilitated in the second half 2009.

Marketing activities are advanced with direct contact with potential customers in Japan, Europe and North America, and zirconium and niobium product samples being sent to Japan, China and Europe.  Distribution of yttrium and rare earth samples is anticipated to commence later in 2009.

For further information please CLICK HERE

TOMINGLEY GOLD PROJECT
Gold  – New South Wales
Alkane Resources Ltd 100% (subject to separate royalty agreements with Compass Resources NL, Golden Cross Operations Pty Ltd and Climax Mining Ltd)

The Tomingley Gold Project (TGP) extends over 100 kilometres from near Parkes in the south, to near Narromine in the north, within the Central West of New South Wales and covers a narrow sequence of Ordovician volcanic rocks.

In 2002 Alkane discovered two new gold deposits at “Wyoming” about 14 km north of the Company's Peak Hill Gold Mine.  This was followed in 2006 by a third discovery at "Caloma".  A major resource drilling programme has identified 850,000 ounces to date in the three deposits.  An additional 450,000 ounce sulphide resource is located below the oxide open pits at Peak Hill and will be subject to review once the TGP is in operation.

A definitive feasibility study (DFS) of these deposits is in progress and several development options are being considered. These include a basic concept of three open pit mines and a later possible underground operation, with conventional one million tonne per year throughput carbon-in-leach gold recovery plant.  This concept should initially recover about 350,000 ounces of gold over six years, but it is anticipated that the underground and further discoveries will expand the project to at least a 10 year life.

As part of the DFS associated infrastructure of power, water and access are being finalised and current capital costs for the project are estimated to be about $65 million.   The DFS is scheduled for completion by late 2009, and subject to regulatory approvals, development should commence early 2010.

For further information please CLICK HERE

ORANGE DISTRICT EXPLORATION JOINT VENTURE - ODEJV
Gold, Copper – NSW
Alkane Resources Ltd 49%, Newmont Australia Limited 51% and can earn in to 75%

In August 2005, Alkane reached agreement with Newmont Australia Limited (Newmont) to farmin to Alkane’s Orange Project which includes the Molong and Moorilda tenements located near the city of Orange in the Central West of New South Wales, adjacent to Newcrest Mining Ltd’s Cadia Valley Operations (~50Moz total resources).

Exploration work during 2008 focused on the McPhillamys prospect which is located within the Moorilda Project.  In 2006 the joint venture reported the discovery of significant gold mineralisation within altered Silurian aged felsic volcanics and sediments at McPhillamys.  During the year, fourteen core holes, including the extension to KPD003 drilled late 2007 (final result KPD003 366 metres @ 1.86g/t gold) and fifteen RC holes were completed.  The drilling largely concentrated in the central or main zone at McPhillamys, but holes also tested adjacent pole-dipole induced polarisation (PDIP) chargeability anomalies to the north, south and west of McPhillamys, and at Kings Plains located about 2 kilometres to the southeast where KPD004 intersected 78 metres @ 1.04g/t gold.

Other substantial intercepts in the main McPhillamys zone include KPD005 201 metres @ 0.93g/t gold; KPD011 236 metres @ 1.23g/t gold; and KPD014 151 metres @ 0.93g/t gold.

The results of the 2008 drilling program confirmed that a plus 0.5g/t gold mineralised envelope extends over a north south strike of at least 600 metres with widths up to 200 metres.   This mineralisation is largely hosted by a generally steep east-dipping, altered coarse grained intermediate volcanic and intrusive sequence, with variable sulphide content up to 10%.  Quartz veining is rare.  Structurally overlying the mineralised system to the east are unaltered fine-grained sediments with a package of intensely deformed intermediate volcanics flanking the system to the west.

While the drilling results have been very positive, the understanding of the exact controls on gold mineralisation, along strike, down dip and down plunge is still not clear.  The drilling data also suggests that there may either be surface depletion of the gold with many shallow holes showing irregular and generally lower grades than the deeper core and RC holes.  The system as defined has the potential to host a multi million ounce deposit but additional drilling will be required to evaluate these concepts.

Further core drilling and regional aircore drilling is in progress.

Newmont advised Alkane that it would assume the role of Operator of the ODEJV as from 1 January.

For further information please CLICK HERE


WELLINGTON
Gold – NSW
Alkane Resources Ltd 100%

The Wellington Project is centred 15 kilometres to the southeast of the town of Wellington.  The project hosts several targets, including the Federal gold and Galwadgere copper-gold prospects.  The Galwadgere deposit, which has been the focus of most of the recent exploration effort, is located adjacent to favourable infrastructure, being three kilometres from the main Western Railway, near to power and water.

The Company carried out a drilling program in 2004-5 which has enabled an initial shallow resource to be calculated at Galwadgere.  The Identified Mineral Resource at 31 December 2007 at 0.5% copper cut off is:-

2.09Mt @ 0.99% copper and 0.3g/t gold.

A 3D IP survey was completed covering the Galwadgere copper deposit and the immediate area of 3 kilometres by 2 kilometres.  A number of moderate to strong chargeability anomalies were generated and, importantly, the existing Galwadgere mineralisation was clearly mapped.  Apart from Galwadgere, three well defined targets were generated.  Two of these are located near the small historic McDowells workings, while the third is just to the east of the outcropping mineralisation (1% Cu, 14% Pb, 8% Zn, 400g/t Ag and 7.5g/t Au) at Christies.  No drilling has previously tested these areas.

The IP also clearly identified down plunge extensions to the Galwadgere deposit not tested by Alkane’s resource drilling program.  Previous core drilling returned ~44m @ 0.7% Cu including 0.25m @ 3.00% Cu, 15.5g/t Au, 230g/t Ag at a down hole depth of 262m in core hole G040 from this zone.  Other less well defined targets are located to the west and southeast of Galwadgere.

For further information please CLICK HERE

BODANGORA
Gold, Copper – NSW
Alkane Resources Ltd 100% (subject to 2%NSR and buy back option to Rio Tinto Exploration Pty Limited)

The project located 15 km north-east of Wellington, and about 25 km north of Alkane’s Wellington (Galwadgere) prospect.  The tenement includes part of the northern end of the Ordovician aged Molong Volcanic Belt (MVB) before it is covered by younger sediments of the Great Australian Basin.  The MVB hosts the monzonite intrusive gold-copper deposits of the Cadia Valley Operations (~20M oz) of Newcrest and several other advanced exploration projects.

Within the tenement area, the geology is dominated by an andesitic volcanic and volcaniclastic sequence with sporadic monzonitic intrusives.  This sequence is covered by Silurian-Devonian sediments and volcanics while the Nindethana Fault, a major crustal suture, separates the Bodangora area from the Siluro-Devonian Hill End Trough sediments and Carboniferous Wuuluman Granite to the east.

For further information please CLICK HERE

CUDAL
Gold, Copper – NSW
Alkane Resources Ltd 100% (subject to 2%NSR and buy back option to Rio Tinto Exploration Pty Limited)

The proejct is centred 25 km west of the city of Orange, adjacent to Alkane’s Molong prospect and the Cadia Valley Operations of Newcrest.  The tenements are located on an outlier of MVB andesitic volcanics, separated from the main belt to the east by the Columbine Mountain Fault, another major crustal structure.  Remnants of a Tertiary basalt sheet are scattered throughout the tenements.

Recent ground reconnaissance to follow up interesting “jasperoid” outcrops in central part of the tenement, has located a previously unexplored area of surface mineralisation to the west of the Bowen Park 1 prospect.  The area is hosted by volcaniclastic conglomerates cut by several structures which appear to have demagnetised (altered) and brecciated the host rocks.  Small monzonite intrusives have been mapped in the target area. 

54 rock chip samples were collected over an area of about 750 metres by 100 metres returned peak results (not all coincident) of 17.2g/t Au, 196g/t Ag, 0.19% Cu, 2.6% Pb and 0.67% Zn.  More than 50% of the samples gave gold grades in excess of 0.5g/t (figure 9).

The area will be evaluated further prior to scheduling drill testing but it appears to represent a significant target zone.

For further information please CLICK HERE

John Stuart Ferguson Dunlop (Chairman)
BE(Min), MEngSc(Min),FAusIMM(CP), FIMMM, MAIME, MCIMM
www.jsdunlop.com.au
Mr Dunlop (58) is a consultant mining engineer with close to 40 years surface and underground mining experience both in Australia and overseas. He is a former director of the Australian Institute of Mining and Metallurgy but remains Chairman of their affiliate, the Mineral Industry Consultants Association. John is Chairman of Alliance Resources Ltd and Drummond Gold Limited and non-executive director of Gippsland Ltd.

David Ian Chalmers (Managing Director)
MSc, FAusIMM, FAIG, FIMMM, FSEG, MSGA, MGSA, FAICD
Mr Chalmers (60) is a geologist and graduate of the Western Australian Institute of Technology (Curtin University). He also has a Master of Science degree from the University of Leicester in the United Kingdom. He has worked in the mining and exploration industry for over 36 years, during which time he has had experience in all facets of exploration through feasibility and development to the production phase. Ian is also a principal in Multi Metal Consultants Pty Ltd.

Ian Raymond (Inky) Cornelius
MAICD
Mr Cornelius (68) has had over 40 years experience in the minerals and petroleum industry. He spent the first nine years of his career with the Western Australian Department of Mines before leaving to manage his own tenement consulting business. Since 1976 he has held senior executive positions in a number of public exploration and mining companies. In this capacity he has had extensive experience and success in the selection, management and development of deposits of many commodities. Inky is a non-executive director of Pancontinental Oil and Gas NL, Austral Africa Resources Ltd and Montezuma Resources Ltd.

Ian Jeffrey Gandel
LLB, BEc, FCPA, FAICD
Mr Gandel (51) is a successful Melbourne businessman with extensive experience in retail management and retail property. He has been a director of the Gandel Retail Trust and has had an involvement in the construction and leasing of Gandel shopping centres. Through his private investment vehicles, Mr Gandel has been in investor in the mining industry since 1994. Gandel Metals Pty Ltd is currently a substantial holder in a number of publicly listed Australian companies and now holds and explores tenements in its own right in Victoria and Western Australia. Ian is also a non-executive director of Alliance Resources Ltd and non-executive Chairman of Gippsland Ltd.

Mr Anthony Dean Lethlean
BAppSc
Mr Lethlean (45) is a geologist with 10 years mining experience including 4 years underground on the Golden Mile in Kalgoorlie. In later years Mr Lethlean has been working as a resources analyst with various stockbrokers and currently consults to Helmsec Global Capital Limited. Tony is a non-executive director of Alliance Resources Ltd.

SECRETARY

Lindsay Arthur Colless
CA, FAICD
Mr Colless, 63, is a Chartered Accountant with 15 years experience in the profession and a further 25 years experience in Commerce, most of which in the mineral and petroleum exploration industry in the capacities of financial controller, company secretary and director. He is a director and/or secretary of a number of public listed companies.

Karen Brown
Ms Brown (48) is an honours graduate in economics from the University of Western Australia and is a director of Mineral Administration Services Pty Ltd which provides company secretarial, accounting, treasury and financial administration services to a number of listed public companies primarily in the resources sector.

For shareholder information please CLICK HERE