Proactiveinvestors Australia Alkane Resources Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia Alkane Resources Ltd RSS feed en Tue, 23 Jul 2019 19:18:11 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Shares in Alkane Resources continue to benefit from twin exposure to gold production and rare earths ]]> https://www.proactiveinvestors.com.au/companies/news/223995/shares-in-alkane-resources-continue-to-benefit-from-twin-exposure-to-gold-production-and-rare-earths-223995.html It’s been a tough few years in the mining business, but in spite of all the ups and downs it’s still possible for a company now and again to hit a sweet spot.

Alkane Resources Ltd (ASX:ALK) is one such company.

Between May and mid-June its share price more than doubled as investors piled into a double good-news story: a producing gold mine coupled with a sizeable rare earths project.

June was the month when gold punched through US$1,400 for the first time in several years and moved up at one point to a six-year high.

That was all to the good for Alkane, which has been producing gold from open pits at the Tomingley mine in New South Wales since 2014 at a rate of between 60,000-to-80,000 ounces a year. The operation is currently transitioning from open pit to underground, however, and production has consequently been lower, at just under 49,000 ounces for the year just gone. It’s likely to be between 27,000 and 32,000 ounces for the year to June 2020.

Still, if there’s ever a good time to transition to lower production, it’s surely when the gold price is rising. Production in 2019 came in ahead of budget, with a corresponding downward effect on costs, so margins were already higher than had been anticipated, even before the gold price started its sudden move in June.

Meanwhile, exploration efforts are underway to push out the mine life, and details of a significant exploration target in the neighbourhood of Tomingley were revealed earlier this month.

So, at the core of this company is a robust and well-run gold operation with an established track record and a recent history of beating expectations that’s allowed Alkane to build a solid platform for growth.

This is not just hyperbole. The platform as it stands consists of over A$80mln in cash and liquid investments, comprising A$69mln in cash, A$3.4mln in bullion and A$7.8mln in listed investments, most notably in Calidus Resources Ltd (ASX:CAI), a company with a gold project in the Pilbara.

But when it comes to Alkane’s stated intention of seeking new opportunities and investments there’s also the matter of Alkane’s paper to consider too. Its shares have performed strongly on the Australian market and would make for attractive currency in any deal in a way that the shares of many other companies would not.

Much of that share price strength is down to the second major asset in Alkane’s portfolio, the Dubbo zirconium and rare earths project, also in New South Wales. This project is the largest of its kind outside of China, and, pending finance, is on the cusp of production, with all the necessary permits in place.

The numbers are certainly impressive. According to the feasibility study, Dubbo will generate A$4.7mln in free cash flow over a 20 year mine life. The net present value is set at just over A$1.2bn, and the internal rate of return works out at 17.5%.

What’s more, the 20 year life by no means exhausts the potential. On some estimates Dubbo could be mined for more than 75 years.

So, a big opportunity in a world that’s suddenly become very interested in rare earths. A recent A$1.2mln deal signed in South Korea for further work on converting the oxides from Dubbo into marketable high purity metals points the way to potential further investment from South Korea.

But in the final analysis it remains to be seen where the billion dollars-plus needed to get Dubbo into production will come from. But that there’s interest, there can be no doubt. And Alkane’s share price demonstrates at the very least that this is one company the market has not lost faith in.

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Tue, 16 Jul 2019 13:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/223995/shares-in-alkane-resources-continue-to-benefit-from-twin-exposure-to-gold-production-and-rare-earths-223995.html
<![CDATA[Media files - Alkane Resources set to add to golden bounty at Tomingley ]]> https://www.proactiveinvestors.com.au/companies/stocktube/14052/alkane-resources-set-to-add-to-golden-bounty-at-tomingley-14052.html Thu, 11 Jul 2019 09:35:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/14052/alkane-resources-set-to-add-to-golden-bounty-at-tomingley-14052.html <![CDATA[News - Alkane Resources produces 48,969 ounces of gold in FY19 and ends with strong balance sheet ]]> https://www.proactiveinvestors.com.au/companies/news/223699/alkane-resources-produces-48969-ounces-of-gold-in-fy19-and-ends-with-strong-balance-sheet-223699.html Alkane Resources Ltd (ASX:ALK) produced 11,555 ounces of gold in the June quarter to total 48,969 ounces in FY2019 from its Tomingley Gold Operation (TGO) within its Tomingley Gold Project, NSW.

Quarterly production was above forecast and within the recent guidance along with all-in sustaining costs (AISC) of $807 per ounce.

Guidance for FY20 is production of 27,000 to 32,000 ounces of gold at an AISC of $1,300 to $1,450 per ounce, in line with the existing underground business case.

At the end of the June quarter, cash, bullion and listed investments totalled A$80.8 million.

READ: Alkane Resources reveals Exploration Target for Roswell, San Antonio, El Paso

Alkane recently defined an Exploration Target of 15.8 to 23.8 million tonnes at a grade ranging between 1.7 to 2.2 g/t gold at its Tomingley Project.

The target is for the combined Roswell, San Antonio and El Paso prospects and could represent the future of the TGO.

A resource drill out program of 60,000 metres of reverse circulation (RC) and diamond drilling has now commenced.

 

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Thu, 11 Jul 2019 09:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/223699/alkane-resources-produces-48969-ounces-of-gold-in-fy19-and-ends-with-strong-balance-sheet-223699.html
<![CDATA[News - Alkane Resources reveals Exploration Target for Roswell, San Antonio, El Paso ]]> https://www.proactiveinvestors.com.au/companies/news/223541/alkane-resources-reveals-exploration-target-for-roswell-san-antonio-el-paso-223541.html Alkane Resources Ltd (ASX:ALK) has defined an Exploration Target of 15.8 to 23.8 million tonnes at a grade ranging between 1.7 to 2.2 g/t gold at its Tomingley Gold Project, NSW.

The target pertains to three primary prospects, Roswell, San Antonio and El Paso, which have over 2,500 metres of combined strike length.

Importantly, the target area lies within 8 kilometres of the existing Tomingley Gold Operations (TGO) one million tonne per annum processing facility and underground mine.

READ: Alkane Resources builds case for major near-mine gold discovery

Alkane’s managing director Nic Earner said: “The Exploration Target highlights the potential to significantly increase the resource around Tomingley Gold Operations in the coming years.

“This Exploration Target is in close proximity to our existing processing operation and underground mine, and could potentially be converted into both increased mine life and increased production.

“Given the potential size and grade of San Antonio alone, Alkane has already commenced the resource definition drilling of this Exploration Target in order to minimise the potential development timetable.”

Last month, Alkane received the final results from its 17,000-metre regional drilling program.

Results continued to suggest that the Roswell, San Antonio, and El Paso gold prospects are all related.

Highlights from the most recent results showed significant intersections between Roswell and San Antonio including 78 metres at 3.51 g/t gold from 214 metres, 24 metres at 3.84 g/t gold from 174 metres and 15 metres at 1.96 g/t gold from 198 metres.

60,000-metre drill program underway

Resource definition drilling at the San Antonio and Roswell prospects has commenced.

This is expected to comprise of over 60,000 metres of predominantly RC drilling.

Other greenfields exploration in the prospective belt will also continue.

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Tue, 09 Jul 2019 09:22:00 +1000 https://www.proactiveinvestors.com.au/companies/news/223541/alkane-resources-reveals-exploration-target-for-roswell-san-antonio-el-paso-223541.html
<![CDATA[Media files - Alkane Resources develops rare earths project amid US-China battery supply chain struggle ]]> https://www.proactiveinvestors.com.au/companies/stocktube/13737/alkane-resources-develops-rare-earths-project-amid-us-china-battery-supply-chain-struggle-13737.html Thu, 13 Jun 2019 21:09:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/13737/alkane-resources-develops-rare-earths-project-amid-us-china-battery-supply-chain-struggle-13737.html <![CDATA[Media files - Alkane Resources intersects broad gold mineralisation near Tomingley process plant ]]> https://www.proactiveinvestors.com.au/companies/stocktube/13736/alkane-resources-intersects-broad-gold-mineralisation-near-tomingley-process-plant-13736.html Thu, 13 Jun 2019 20:46:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/13736/alkane-resources-intersects-broad-gold-mineralisation-near-tomingley-process-plant-13736.html <![CDATA[News - Alkane Resources builds case for major near-mine gold discovery ]]> https://www.proactiveinvestors.com.au/companies/news/221923/alkane-resources-builds-case-for-major-near-mine-gold-discovery-221923.html Alkane Resources Ltd (ASX:ALK) has received the final results for the completed 15,000-metre regional drilling program at the Tomingley Gold Project in New South Wales.

Drilling continues to suggest that the Roswell, San Antonio, and El Paso gold prospects are all related.

Latest results show significant intersections between Roswell and San Antonio including 78 metres at 3.51 g/t gold from 214 metres, 24 metres at 3.84 g/t gold from 174 metres and 15 metres at 1.96 g/t gold from 198 metres.

A 60,000 metre resource definition drilling program at the San Antonio and Roswell prospects is due to start in mid-June subject to regulatory approvals.

READ: Alkane Resources increases gold production guidance by 8.9%

Significant gold mineralisation has been confirmed by reverse circulation (RC) and diamond core drilling between the Roswell and San Antonio prospects.

It shows a continuous strike length of 1,600 metres of gold mineralisation located within 4 kilometres south of the Tomingley Gold Operations (TGO) processing facility.

Together with the El Paso prospect there is a cumulative strike length of 2,500 metres of gold mineralisation within 8 kilometres of TGO.

McLeans South also connected to Roswell

Drilling results including 39 metres at 1.24 g/t gold from 240 metres at McLeans South confirm that its mineralisation connects to the northern extension of the Roswell mineralisation.

This means Roswell has a total strike length of over 600 metres.

Shares are up 90% this year

Alkane shares are up 90% year to date as AUD gold prices hit all-time highs - but also as the company's Dubbo Project in NSW attracts global investor attention.

Proactive recently caught up with the company to discuss the rising demand for non-China based rare earth projects.

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Wed, 12 Jun 2019 09:29:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221923/alkane-resources-builds-case-for-major-near-mine-gold-discovery-221923.html
<![CDATA[News - Alkane Resources does deal with Korean company for processing technology ]]> https://www.proactiveinvestors.com.au/companies/news/221593/alkane-resources-does-deal-with-korean-company-for-processing-technology-221593.html Alkane Resources Ltd (ASX:ALK) has executed a binding agreement with Ziron Tech to fund the final stage research and feasibility in relation to a clean metal process.

The South Korean company has developed technology in the form of a carbon-free process to convert metal oxides into metals through an electrolytic process.

Under the deal, Alkane will invest US$1.2 million towards a pilot plant facility to complete late-stage piloting and feasibility study for larger scale development and commercialisation of the process.

The technology could provide a cost-effective and environmentally superior alternative to the traditional Kroll process used to make high purity zirconium, hafnium, and titanium metals.

This has the potential to increase the value of the 100%-owned Dubbo Project in New South Wales.

Alkane subsidiary ASM to have exclusive global rights

Alkane will have exclusive global rights to use the processing technology at commercial scale in relation to zirconium and hafnium under an agreed license and royalty regime.

Alkane’s managing director Nic Earner said: “We have watched with great interest and supported the success of CNU in developing and refining its metallisation technology, aware of the very significant environmental benefits, material cost reductions and high purity metal outcomes.

“Once piloted and proven, we believe this technology has the opportunity to reshape the metallisation industry for ASM’s key product lines, and we welcome the opportunity to build on the strong relationship we have formed with the Ziron Tech team over the last five years.

“This has the potential to be a breakthrough for ASM in its product marketing and will have obvious positive implications for the Dubbo Project economics.”

READ: Alkane Resources increases gold production guidance by 8.9%

Alkane yesterday increased its FY19 gold production to 48,000-49,000 ounces from 42,000-47,000 from its Tomingley Gold Operations (TGO) in New South Wales.

Taking the mid-points of both ranges, the upgrade represents an 8.9% increase in production for the financial year ending June 30 2019.

The increased production means the operating cost guidance has also lowered 9.5% to $950 per ounce from $1,050 per ounce.

With the AUD gold price trading around record highs at $1,900 per ounce, Tomingley is producing solid cash flow.

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Thu, 06 Jun 2019 09:04:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221593/alkane-resources-does-deal-with-korean-company-for-processing-technology-221593.html
<![CDATA[News - Alkane Resources increases gold production guidance by 8.9% ]]> https://www.proactiveinvestors.com.au/companies/news/221507/alkane-resources-increases-gold-production-guidance-by-89-221507.html Alkane Resources Ltd (ASX:ALK) has increased its FY19 gold production to 48,000-49,000 ounces from 42,000-47,000 ounces at its Tomingley Gold Operations (TGO) in New South Wales.

Taking the mid-points of both ranges, the upgrade represents an 8.9% increase in production for the financial year ending June 30 2019.

The increased production means the operating cost guidance has also lowered 9.5% to $950 per ounce from $1,050 per ounce.

With the AUD gold price trading around record highs at $1,900 per ounce, Tomingley is producing solid cash flow.

READ: Alkane Resources makes third new gold discovery at Tomingley

Alkane’s managing director Nic Earner said “The team at Tomingley Gold Operations continues to perform really well, which in turn is providing a solid cash platform for the company to rapidly advance its near mine exploration.

“We look forward to seeing our first underground ore delivered shortly.”

Development of the underground operation at Tomginley continues on budget and ahead of schedule - first stoping ore is expected in August.

Alkane investors exposed to two hot commodity classes

Alkane shares are up over 30% in the past month as the company's Dubbo Project also located in NSW has peaked investor's interest.

Proactive recently caught up with the company to discuss the rising demand for non-China based rare earth projects.

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Wed, 05 Jun 2019 09:43:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221507/alkane-resources-increases-gold-production-guidance-by-89-221507.html
<![CDATA[Media files - Alkane Resources' rare earths project highlighted as industry looks to non-Chinese supply ]]> https://www.proactiveinvestors.com.au/companies/stocktube/13525/alkane-resources--rare-earths-project-highlighted-as-industry-looks-to-non-chinese-supply-13525.html Thu, 30 May 2019 02:59:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/13525/alkane-resources--rare-earths-project-highlighted-as-industry-looks-to-non-chinese-supply-13525.html <![CDATA[News - Alkane Resources eyes mine life extension with third new gold discovery at Tomingley ]]> https://www.proactiveinvestors.com.au/companies/news/220464/alkane-resources-eyes-mine-life-extension-with-third-new-gold-discovery-at-tomingley-220464.html Alkane Resources Ltd (ASX:ALK) has made a third near-mine discovery at the El Paso prospect within its Tomingley Gold Operations (TGO) in New South Wales.

Reverse circulation (RC) drilling has intersected 12 metres at 4.99 g/t gold from 108 metres and 21 metres grading 2.38 g/t gold from 141 metres at El Paso.

The El Paso prospect is about 7 kilometres south of the TGO processing facility.

Notably, together with the Roswell and San Antonio prospects there is a cumulative strike length of 2,500 metres of gold mineralisation within 8 kilometres of TGO.

The opportunity for a material mine life extension of the TGO as a result of the regional drill programs continues to be realised.

READ: Alkane Resources posts strong gold production, increases guidance

Alkane’s managing director Nic Earner said: “The third new discovery by Alkane only 7 kilometres from the Tomingley Gold Operations processing plant is great news.

“Together with the Roswell and San Antonio prospects we now have over 2,500 metres strike length that is still open to the south towards Peak Hill.

“We’re looking forward to announcing further drill results in the coming weeks, and confirming the potential for substantial mine life extension.”

Additional assays pending

Exploration drilling in the last 12 months has focussed on the Roswell, San Antonio and El Paso prospects which are all within 7 kilometres of the TGO processing facility.

Further drill results are anticipated in the coming weeks, which are expected to confirm the potential for substantial mine life extension.

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Fri, 17 May 2019 09:34:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220464/alkane-resources-eyes-mine-life-extension-with-third-new-gold-discovery-at-tomingley-220464.html
<![CDATA[News - Alkane Resources invests $2.16 million in Calidus Resources to fund Warrawoona drilling ]]> https://www.proactiveinvestors.com.au/companies/news/219315/alkane-resources-invests-216-million-in-calidus-resources-to-fund-warrawoona-drilling-219315.html Alkane Resources Ltd (ASX:ALK) has subscribed to 80 million shares of Calidus Resources Ltd (ASX:CAI) at an issue price of 2.7 cents a share, for a total investment of $2.16 million.

Proceeds of the placement, together with the company’s existing cash will ensure that Calidus has sufficient funding to complete the pre-feasibility study (PFS) on its Warrawoona Gold Project in the Pilbara and conduct further drilling of regional targets and resource infill and extensional areas.

The new shares are priced at a 13% premium to Calidus’ last closing price of 2.4 cents on April 29, 2019.

Calidus managing director Dave Reeves said: “This strategic placement to Alkane means that Calidus can extend the existing drilling program to target new and additional regional and near-resource areas.

“This drilling is being done in parallel with the PFS to help ensure that we not only grow the gold inventory, but we also achieve our target of showing the market the strong financial returns we believe will be associated with the Warrawoona Gold Project.”

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Tue, 30 Apr 2019 11:46:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219315/alkane-resources-invests-216-million-in-calidus-resources-to-fund-warrawoona-drilling-219315.html
<![CDATA[News - Alkane Resources posts strong gold production, increases guidance ]]> https://www.proactiveinvestors.com.au/companies/news/219206/alkane-resources-posts-strong-gold-production-increases-guidance-219206.html Alkane Resources Ltd (ASX:ALK) produced 10,669 ounces of gold in the March quarter from its Tomingley Gold Operations in New South Wales.

The site cash costs for the quarter were lower than expected at A$800 per ounce with an all-in sustaining cost (AISC) of A$956 per ounce.

Due to the continued higher than expected grade of some stockpiles, FY19 guidance has increased to 42,000-47,000 ounces of gold at an AISC of A$950-1,100 per ounce.

Exploration at the project continues aimed at extending the mine life at Tomingley with 45 holes completed in the quarter at the Roswell and San Antonio prospects.

Production up, costs down at Tomingley

The guidance was increased from 35,000-40,000 ounces at an AISC of A$1,050-1,150 per ounce.

Gold sales for the March quarter were 10,791 ounces for revenue of A$19.9 million at an average price of A$1,841 per ounce.

At the quarter’s end, Alkane had $72.4 million in cash, bullion on hand at fair value of $1.8 million, and $4.6 million of listed investments at market value.

Alkane noted that it continues to seek further investment opportunities.

READ: Alkane Resources drills evidence of material mine life extension

Open pit mining finished during the quarter and underground development from the base of the Wyoming One pit continues and is both on schedule and on budget.

An extensive exploration program focused on the immediate area to the south of the Tomingley mine has continued as part of the plan to source additional ore feed, either at surface or underground.

Drilling at Roswell intersected mineralisation over a strike length of 350 metres and remains open to the north and south.

A substantial resource drill out program is planned to commence as soon as practical.

Proactive spoke with Alkane’s managing director Nic Earner earlier this month about the drill program and its recent results.

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Mon, 29 Apr 2019 09:59:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219206/alkane-resources-posts-strong-gold-production-increases-guidance-219206.html
<![CDATA[Media files - Alkane Resources' drilling indicates potential Tomingley mine life extension ]]> https://www.proactiveinvestors.com.au/companies/stocktube/12844/alkane-resources--drilling-indicates-potential-tomingley-mine-life-extension-12844.html Tue, 02 Apr 2019 21:08:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/12844/alkane-resources--drilling-indicates-potential-tomingley-mine-life-extension-12844.html <![CDATA[News - Alkane Resources drills evidence of material mine life extension ]]> https://www.proactiveinvestors.com.au/companies/news/217469/alkane-resources-drills-evidence-of-material-mine-life-extension-217469.html Alkane Resources Ltd (ASX:ALK) has drilled broad, shallow high-grade gold intercepts 3-4 kilometres south of Tomingley Gold Operations (TGO) in New South Wales.

The results which feature 24 metres at 5.08 g/t gold from 78 metres show potential for material project life extension and a potential return to open pit mining.

This 12,000-metre reverse circulation (RC) program tested the gold resource potential of the Roswell, San Antonio and El Paso prospects.

Drilling has confirmed significant gold mineralisation at San Antonio over a strike length of 800 metres and Roswell of 350 metres – both remain open along strike and at depth.

Another 50,000 metres now to be drilled

An additional 3,000 metres of drilling is in progress to test the 300 metres untested strike between them.

This smaller program will be followed by about 50,000-metres of resource definition drilling at the San Antonio and Roswell prospects.

Meanwhile, assays are pending for the El Paso prospect, with reporting expected in May.

READ: Alkane Resources posts half-yearly revenues of $52 million as Tomingley gold production moves underground

Alkane’s managing director Nic Earner said: “It is clear from the breadth and grade encountered in the latest drilling that these are the most significant exploration results in the Tomingley region since the initial discoveries by Alkane over 10 years ago.

“These results are reminiscent of the discovery holes of the deposits that then became our Tomingley Gold Operations.

“With our processing plant, which is currently treating stockpiles and is soon to be processing underground material, only 4kms away, we will be expediting the drilling and development of these ounces to capture value for shareholders as quickly as possible.”

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Fri, 29 Mar 2019 09:47:00 +1100 https://www.proactiveinvestors.com.au/companies/news/217469/alkane-resources-drills-evidence-of-material-mine-life-extension-217469.html
<![CDATA[News - Alkane Resources posts half-yearly revenues of $52 million as Tomingley gold production moves underground ]]> https://www.proactiveinvestors.com.au/companies/news/215476/alkane-resources-posts-half-yearly-revenues-of-52-million-as-tomingley-gold-production-moves-underground-215476.html Alkane Resources Limited (ASX:ALK) has delivered gold sales revenue of $52.4 million and a gross profit of $17.5 million in the half year ending December 31, 2018.

Gold production amounted to 26,745 ounces and gold sales were 30,497 ounces, achieving an average sales price of $1,717 an ounce.

The company is transitioning its Tomingley Gold Operation to underground mining after open pit mining finished early in January, after 5 years of production.

Development has begun on schedule with both the main decline and vent portals established and first underground ore targeted for the second half of calendar year 2019.

READ: Alkane Resources’ Tomingley gold paves way for Dubbo rare earths story

Alkane managing director Nic Earner said this was another great half driven by the team at the Tomingley Gold Operation.

Earner said: “Alkane’s strong balance sheet positions us well to execute our growth plans into 2019.

“With our development underground, our encouraging exploration, our development-ready Dubbo Project and our strategic investments, we look forward to the rest of this year.”

Tomingley's main decline (left) and the portal in the Wyoming One pit

  READ: Alkane Resources begins underground mining at Tomingley Gold Project in NSW

Production guidance for the financial year ending in June 2019 is 35,000-40,000 ounces at an all-in sustaining cost of $1,050-$1,150 an ounce.

The all-in sustaining cost achieved in the recent half was $1,005 an ounce, compared to $1,013 an ounce in the previous corresponding period.

READ: Alkane Resources continues drilling at Tomingley to define additional gold resources

Alkane is pursuing an extensive exploration program focused on the area immediately south of the Tomingley mine with the objective of sourcing additional ore feed, either at surface or underground.

The exploration target area has a cumulative strike length of 2,500 metres comprising the Roswell, San Antonia and El Paso prospects.

Core drilling is also underway at the Peak Hill Gold Mine where an upgraded resource of 108,000 ounces was released last October.

  READ: Alkane Resources lifts stake in gold explorer Calidus Resources to 10.19%

During the half, Alkane also made a strategic investment into ASX-listed gold developer Calidus Resources Ltd (ASX:CAI) and now holds about 10.2% in Calidus.

Calidus is developing the Warrawoona Gold Project in Western Australia’s Pilbara region where it has a gold resource at the Klondyke deposit of 654,000 ounces.

READ: Alkane Resources confirms unanimous support from Explaurum board for its $8 million investment

The company’s Dubbo Project in New South Wales remains construction ready with the deposit and surrounding land wholly-owned, government approvals in place and flowsheet and business case established.

Alkane subsidiary Australian Strategic Materials (ASM) is working towards securing finance for the Dubbo Project, with a focus on offtake contracts for its products and a resulting strategic investor for the project.

The company believes increased regulatory pressure in China will cause further price movement within the market, potentially creating a catalyst for offtake contracts.

Dubbo has a large in-ground resource of zirconium, hafnium, niobium, yttrium and rare earth elements.

As an advanced polymetallic project outside of China, Dubbo has potential to be a strategic and independent supply of critical minerals for a range of sustainable technologies and future industries.

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Wed, 27 Feb 2019 23:57:00 +1100 https://www.proactiveinvestors.com.au/companies/news/215476/alkane-resources-posts-half-yearly-revenues-of-52-million-as-tomingley-gold-production-moves-underground-215476.html
<![CDATA[News - Alkane Resources' Tomingley gold paves way for Dubbo rare earths story ]]> https://www.proactiveinvestors.com.au/companies/news/215177/alkane-resources--tomingley-gold-paves-way-for-dubbo-rare-earths-story-215177.html Alkane Resources Ltd (ASX:ALK) (FRA:AK7) (OTCMKTS:ALKEF) (OTCMKTS:ANLKY) specialises in gold production and multi-commodity project exploration and development, including rare earths, in Australia.

It is run by managing director Nic Earner, a chemical engineer with more than 20 years experience in technical and operational optimisation work and management.

Earner boasts an operations manager posting at what is now Aeris Resources Ltd (ASX:AIS) on his CV and he was a manager at big miner Rio Tinto Limited (ASX:RIO) (LON:RIO) (NYSE:RIO). He previously held a variety of roles at BHP Group PLC (ASX:BHP) (LON:BHP) (NYSE:BHP) acquisition WMC Resources at the Olympic Dam project in South Australia.

What does Alkane Resources own?

The key asset is the flagship Dubbo Rare Earths Project in Central West NSW, which is based on a large in-ground resource of zirconium, hafnium, niobium and rare earth elements.

Dubbo has an 18.9 million tonne ore reserve and 75.18 million tonne resource, giving an estimated 20-year project life at a 1 million tonnes a year plant feed rate.

The financially-viable project could generate $4.7 billion before tax in undiscounted free cash flow with its 20-year base case.

Alkane has said the Dubbo resource could be mined at the million-tonne nameplate capacity for more than 75 years, meaning a long life and expansions could be on the cards for any operator or developer.

The project’s pre-tax net present value (NPV8) was forecast at between $909 million and $1.297 billion at an 8% discount rate, depending on the development route.

Dubbo project's 20-year base case of 1 million tonnes a year required a $1.3 billion capital expenditure (capex) and $124 million sustaining capital to generate $663 million revenue from $341 million operating costs.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was put at $320 million while the internal rate of return (IRR) was 17.5% for a $1.24 billion NPV8 before tax.

Alkane hopes to take a two-stage approach to ramp-up, starting annual production at 500,000 tonnes.

The company previously argued its proposed modular approach to start-up would involve large elements of off-site construction, reducing build time and start-up capex.

A staged build would attract an $808 million capital cost for stage I, $692 million for stage II and $39 million extra of sustaining capital over the 20 years to put pre-tax NPV at $909 million and IRR at 16.1%.

Alkane has secured the project land and obtained regulatory approvals, including state and federal environmental approvals and approval to build the mine.

The company has also completed project engineering, running a pilot plant at the Australian Nuclear Science and Technology Organisation facility in Sydney for more than a decade.

Alkane, which has a market capitalisation of $103.75 million, has previously expressed its hopes at finding an offtake partner for the project, an important financial milestone.

The company noted last month its financing effort was continuing in a volatile global market.

It highlighted in its December quarter activities report increased environmental legislation had affected Chinese zirconium chemicals and powders supply.

The company flagged ferro-niobium prices had stayed high as steel companies continue to look to substitute also-short ferrovanadium supplies.

China’s rare-earth permanent magnet industry is continuing to forecast increasing demand.

Alkane’s production asset is the Tomingley gold mine near Dubbo, which is owned by another subsidiary, Tomingley Gold Operations.

The asset has brought in significant revenue to the company to support its exploration and development efforts.

Alkane had a cash flow of more than $40 million in the 2017-18 financial year, writing a profit of $24 million and claiming earnings of 4.8 cents a share.

Gold sales were $40.9 million in the December quarter, with 23,841 ounces going towards the revenue results for an average price of $1,716 an ounce.

The production level was 11,111 ounces, exceeding forecasts, as site operating cash costs sat at $846 an ounce for all-in sustaining costs (AISC) of A$1,051 an ounce.

Alkane’s third subsidiary, Toongi Pastoral Company, managed about 3,000 hectares of residual farmland, assets and biodiversity offset areas associated with the Dubbo project.

Significant shareholder Calidus Resources Ltd (ASX:CAI) upped its stake in Alkane to 10.19% by December 20 in a $558,328 series of on-market trades made in the December quarter.

Western Australian company Alkane paid a $400,000 break fee in the quarter to not proceed with its planned investment in the listed gold exploration company Explaurum Limited (ASX:EXU).

Alkane had $73.7 million cash on December 31 and expects to spend $24 million in the March quarter.

A $10.1 million sum is flagged for production while $5.8 million is budgeted for exploration and another $5.8 million for development.

Inflection points

Funding and commitment for Dubbo project

Uptake of electric vehicles generally and rare earth shares of the battery metals mix

Ongoing earnings milestones at Tomingley gold mine

Commodity cycles and demand-and-supply pressures for gold and battery metals

Government policy on farmland management and environmental offset requirements

Managing director Nic Earner confident of project and company potential

“We are financially well positioned to persist to seek an offtake at fair terms, and are interfacing with the Australian Government and Export Credit Agencies to further our project,” chairman Ian Gandel told shareholders on the day of the company’s November annual meeting.

“Your board remains very optimistic in the prospects for the Dubbo project and, more broadly, for your company.”

 

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Mon, 25 Feb 2019 16:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/215177/alkane-resources--tomingley-gold-paves-way-for-dubbo-rare-earths-story-215177.html
<![CDATA[News - Alkane Resources begins underground mining at Tomingley Gold Project in NSW ]]> https://www.proactiveinvestors.com.au/companies/news/214600/alkane-resources-begins-underground-mining-at-tomingley-gold-project-in-nsw-214600.html Alkane Resources Limited (ASX:ALK) has begun underground mining at its Tomingley Gold Project (TGP) in Central West New South Wales.

The project, which is transitioning to underground operations, contains an operating open cut mine and a 1 million tonnes per annum processing facility.

The first blast took place on January 7, 2019, providing for the development of two ports off the northern ramp in the Wyoming One open cut and two declines below the surface providing access for the mining equipment.

READ: Alkane Resources continues drilling at Tomingley to define additional gold resources

The company is in its final stages of open cut mining with the Wyoming Three pit having been partially backfilled and a goodbye cut added in the Wyoming One and Caloma Two pits.

Final shaping of the residual landforms is also nearing completion with two large waste rock emplacements having been shaped and topsoiled.

The final shaping will take place mid-year followed by hydroseeding the batters to progress rehabilitation.

READ: Alkane Resources’ gold is fuelling prospects for Dubbo rare earths development

The company has been exploring gold prospects in the region between Tomingley village and Peak Hill township, including the Roswell, El Paso and San Antonio prospects.

A reverse circulation program is designed to find economically viable targets that could contribute ore to the TGO processing plant.

Alkane has also started a 10-hole diamond drilling program at Peak Hill to test the sulphide ore below the Proprietary Pit, a site of previous mining in 1998.

Multiple high-grade assays

Intercepts at the Roswell prospect, 3 kilometres south of the TGO mine, include:

- 39 metres grading 4.49 g/t gold from 123 metres including 9 metres at 8.43 g/t from 123 metres;

- 6 metres at 4.7 g/t from 189 metres; and

- 21 metres at 2.46 g/t from 207 metres.

Significant gold mineralisation was confirmed at Roswell over a strike length of 350 metres.

Guidance has increased

Gold production at TGO was above forecast at 11,111 ounces for the quarter ending December 31, 2018, with gold sales of 23,841 ounces for revenue of $40.9 million at an average price of $1,716 per ounce.

Guidance for financial year 2019 has increased with forecast production of 35,000 to 40,000 ounces of gold at an AISC of $1,050 to $1,150 per ounce. 

- Jessica Cummins 

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Wed, 13 Feb 2019 21:45:00 +1100 https://www.proactiveinvestors.com.au/companies/news/214600/alkane-resources-begins-underground-mining-at-tomingley-gold-project-in-nsw-214600.html
<![CDATA[News - Alkane Resources continues drilling at Tomingley to define additional gold resources ]]> https://www.proactiveinvestors.com.au/companies/news/213771/alkane-resources-continues-drilling-at-tomingley-to-define-additional-gold-resources-213771.html Alkane Resources Ltd (ASX:ALK) is drilling at its Tomingley Gold Project (TGP) in New South Wales to further understand the potential for gold resources at the Roswell, San Antonio and El Paso prospects.

The TGP contains Alkane’s currently operating Tomingley Gold Operations (TGO), an open pit mine with a 1 million tonnes per annum processing facility that is transitioning to underground through 2019.

Over the last year, and continuing, Alkane has conducted an extensive regional exploration program with the objective of defining additional resources that have the potential to be mined either via open-pit or underground operations and fed to TGO.

READ: Alkane Resources lifts stake in gold explorer Calidus Resources to 10.19%

Alkane’s recent reverse circulation (RC) drilling results confirmed multiple high-grade gold lodes at Roswell Prospect 3 kilometres south of the TGO mine with intercepts of:

• 39 metres grading 4.49 g/t gold from 123 metres including 9 metres grading 8.43 g/t gold from 123 metres;
• 6 metres grading 4.70 g/t gold from 189 metres; and
• 21 metres grading 2.46 g/t gold from 207 metres.

Notably, significant gold mineralisation was confirmed at Roswell over a strike length of 350 metres.

Alkane’s 11,500 metre regional RC drilling program is continuing, testing the gold resource potential of the Roswell, San Antonio and El Paso prospects.

Core drilling is also underway at Peak Hill to provide metallurgical samples within the recently revised resource.

READ: Alkane Resources reveals gold resource at Peak Hill mine near Tomingley Gold Operations

The 108,000 gold ounces resource at Peak Hill has been estimated only for the main mineralised domain which extends to a maximum depth of 200 metres below the base of the Proprietary pit.

It is worth noting that there is scope to expand the resource at depth and in the satellite deposits within an extensive alteration zone.

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Fri, 01 Feb 2019 12:56:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213771/alkane-resources-continues-drilling-at-tomingley-to-define-additional-gold-resources-213771.html
<![CDATA[News - Alkane Resources lifts stake in gold explorer Calidus Resources to 10.19% ]]> https://www.proactiveinvestors.com.au/companies/news/211614/alkane-resources-lifts-stake-in-gold-explorer-calidus-resources-to-1019-211614.html Alkane Resources Limited (ASX:ALK) has lifted its stake in gold explorer Calidus Resources Ltd (ASX:CAI) to 10.19% through a series of on-market purchases in the December quarter.

The interest has been increased from 8.81% with the acquisition of a total of more than 19.6 million shares valued at more than $556,000.

Alkane now holds more than 144.6 million shares.

READ: Alkane Resources completes $3.7 million investment into Calidus to develop Warrawoona Gold Project

In October the NSW gold producer and rare earths developer made an initial investment into Calidus by acquiring 125 million ordinary shares at a placement price of 2.95 cents a share.

This investment totalled more than $3.687 million and is part of Alkane’s growth strategy for increasing shareholder value through investing its cash balance in junior gold mining companies.

Calidus was selected for its excellent prospectivity and path through feasibility to development, which is in line with Alkane’s criteria of investments with high exploration potential and near-term development funding requirements.

READ: Alkane Resources’ gold is fuelling prospects for Dubbo rare earths development

Calidus controls the Warrawoona Gold Project 30 kilometres southeast of Marble Bar in the East Pilbara region of Western Australia.

The project has a 712,000-ounce resource and high exploration upside, with outcropping mineralisation at surface at all deposits which are open along strike and down-dip.

Many identified targets have also not yet been tested and the existing surface mineralisation suggests any initial mining operation will be open cut.

To form technical committee

Alkane and Calidus plan to form a technical committee to accelerate development of the Warrawoona project.

This arrangement is expected to bring greater experience and up-to-date commercial cost understanding to the smaller Calidus team.

Alkane brings experience in project approvals, feasibility studies, commercial arrangements and commissioning and operation commencement.

This comes from development of the Tomingley Gold Operations and work undertaken at its Dubbo Rare Earths Project, both in Central West NSW.

READ: Alkane Resources gives notice to terminate $8 million Explaurum investment

Earlier this week, Alkane gave notice to terminate its $8 million investment in Explaurum Ltd (ASX:EXU) after the latter’s board accepted an improved takeover off from Ramelius Resources Limited (ASX:RMS).

The share subscription agreement between Alkane and Explaurum represents a competing proposal to the accepted takeover.

In accordance with its rights under this agreement, Alkane has given notice of termination and requested that the $800,000 deposit be refunded and the $400,000 break fee paid.

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Fri, 21 Dec 2018 09:25:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211614/alkane-resources-lifts-stake-in-gold-explorer-calidus-resources-to-1019-211614.html
<![CDATA[News - Alkane Resources gives notice to terminate $8 million Explaurum investment ]]> https://www.proactiveinvestors.com.au/companies/news/211369/alkane-resources-gives-notice-to-terminate-8-million-explaurum-investment-211369.html Alkane Resources Limited (ASX:ALK) has given notice to terminate its $8 million investment in Explaurum Ltd (ASX:EXU) after the latter’s board accepted an improved takeover off from Ramelius Resources Limited (ASX:RMS).

The share subscription agreement between Alkane and Explaurum represents a competing proposal to the accepted takeover.

In accordance with its rights under this agreement, Alkane has given notice of termination and requested that the $800,000 deposit be refunded and the $400,000 break fee paid.

READ: Alkane Resources to invest $8 million in gold junior Explaurum

The New South Wales gold producer and rare earths project developer intended to invest into Explaurum’s Tampia Gold Project in WA.

This investment was to be made through a placement of 66,666,675 ordinary Explaurum shares at an issue price of 12 cents per share, which would have given Alkane a 12.2% holding in Explaurum.

READ: Alkane Resources' gold is fuelling prospects for Dubbo rare earths development

It formed part of Alkane’s strategy of investing in junior gold companies with projects that have passed due diligence review and Alkane’s investment criteria.

These criteria include high exploration potential as well as requiring near-term development funding.

Ramelius increased the consideration of its original offer by 2 cents cash per Explaurum share in addition to the existing consideration of 1 Ramelius share for every 4 Explaurum shares.

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Tue, 18 Dec 2018 17:20:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211369/alkane-resources-gives-notice-to-terminate-8-million-explaurum-investment-211369.html
<![CDATA[News - Alkane Resources confirms unanimous support from Explaurum board for its $8 million investment ]]> https://www.proactiveinvestors.com.au/companies/news/210539/alkane-resources-confirms-unanimous-support-from-explaurum-board-for-its-8-million-investment-210539.html Alkane Resources Ltd (ASX:ALK) has received unanimous support from the board of Explaurum Ltd (ASX:EXU) for its proposed $8 million investment in Explaurum.

The Explaurum board continues to recommend that its shareholders approve the Alkane strategic investment at the general meeting on December 21, 2018.

Importantly, the investment will provide funding to accelerate exploration and finalise the bankable feasibility study for the Tampia Gold Project.

The Explaurum board also recommended unanimously that shareholders reject the off-market takeover offer from Ramelius Resources Limited (ASX:RMS) by taking no action.

READ: Alkane Resources progresses $8 million investment in Explaurum Ltd

Explaurum noted an independent expert report in relation to the Ramelius offer which concluded that the offer is not fair and reasonable.

On top of the value inadequacy highlighted by the independent expert report, there are several other key reasons why the Explaurum board has strong reservations in relation to the Ramelius offer:

• Ramelius’ plan for the future development and operation of the Tampia Project remains highly uncertain. Ramelius has not explained to Explaurum shareholders how it will be able to consolidate the Edna May and Tampia Projects in a way that will ‘realise significant cost savings or operational synergies’.

• Explaurum remains highly sceptical as to the practical ability, and commercial logic, of trucking Tampia ore to the Edna May processing facility. Explaurum’s study work has consistently shown that the value of the Tampia Project is maximised on a standalone development basis.

• Explaurum shareholders are being asked to heavily dilute their exposure to the Tampia Project – a high-grade, open pit development project with forecast low operating costs and significant potential resource upside. In exchange, Explaurum shareholders are being asked to accept predominant exposure to a more mature portfolio of assets with a higher cost production profile and a shorter reserve life.

READ: Alkane Resources to invest $8 million in gold junior Explaurum

It should also be noted that the independent expert value assessment of Explaurum did not take into account potential value enhancements from:

• the Mace Discovery; or
• other operating and capital cost optimisations currently being undertaken as part of the bankable feasibility study on the Tampia Project.

These dynamics have the potential to deliver significant further upside to the value assessment of Explaurum.

Further information regarding the Mace Discovery is expected to be revealed later this week.

Coming after Alkane’s $3.7 million transaction with Calidus Resources Ltd (ASX:CAI) in October 2018, the Explaurum investment is part of Alkane’s strategy of investing in junior gold companies with projects that have passed due diligence review and Alkane’s investment criteria.

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Wed, 05 Dec 2018 16:03:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210539/alkane-resources-confirms-unanimous-support-from-explaurum-board-for-its-8-million-investment-210539.html
<![CDATA[News - Alkane Resources progresses $8 million investment in Explaurum Ltd ]]> https://www.proactiveinvestors.com.au/companies/news/210181/alkane-resources-progresses-8-million-investment-in-explaurum-ltd-210181.html Alkane Resources Limited (ASX:ALK) is progressing its $8 million investment in gold explorer Explaurum Ltd (ASX:EXU) after a takeover bid for the latter has not been improved.

Ramelius Resources Limited (ASX:RMS) has advised Explaurum that following a period of due diligence it is unable to improve the terms of its off-market scrip takeover offer.

This decision has prompted Explaurum to state that it is now focused on implementing the Alkane placement transaction.

READ: Alkane Resources to invest $8 million in gold junior Explaurum

In a statement that company said: “The Alkane transaction has been recommended by the Explaurum board as superior to the current Ramelius takeover offer.

“It is also noteworthy that Alkane entered the placement transaction after completing its own due diligence activities on Explaurum and the Tampia project.

“Alkane’s placement issue price of 12 cents per share represents a 26% premium to the implied Ramelius takeover offer price of 9.5 cents per share as at close of trade on November 26.

“The Alkane transaction also has no change of control implications.”

Alkane to hold 12.2% stake

Alkane’s $8 million placement funds, which will result in it holding a 12.2% stake in Explaurum, will be used to complete a bankable feasibility study for the Tampia project in WA.

READ: Alkane Resources' gold is fuelling prospects for Dubbo rare earths development

They will also be used to aggressively accelerate drilling across the Tampia region, including at the Mace deposit.

This work is expected to advance the Tampia project to a final investment decision during the first quarter of 2019.

Tampia has 675,000-ounce resource

Tampia, which is about 250 kilometres east of Perth in the Central Wheatbelt region of WA, has an initial ore resource containing 675,000 ounces at 1.79 g/t gold.

The Explaurum investment represents Alkane’s second in recent months and follows a $3.7 million transaction with Calidus Resources Ltd (ASX:CAI), which has the Warrawoona Gold Project.

Explaurum stated: “Both Explaurum and Ramelius would like to acknowledge that the recent engagement between the two companies was constructive and undertaken in good faith by both parties.”

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Thu, 29 Nov 2018 16:44:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210181/alkane-resources-progresses-8-million-investment-in-explaurum-ltd-210181.html
<![CDATA[News - Alkane Resources' gold is fuelling prospects for Dubbo rare earths development ]]> https://www.proactiveinvestors.com.au/companies/news/209637/alkane-resources-gold-is-fuelling-prospects-for-dubbo-rare-earths-development-209637.html Alkane Resources Limited (ASX:ALK) has topped revenue from its gold business at $130 million as the rare earths project holder keeps watch on the effect of US policy changes on price and demand for battery minerals.

The company held its annual general meeting in Sydney today with chairman Ian Gandel saying Alkane had found itself “in a very strong position with the solid result from the gold operations providing the foundation to that strength.”

READ: Alkane Resources to invest $8 million in gold junior Explaurum

Gandel used his chairman’s address to highlight the New South Wales-focused company’s 2017-18 annual results.

These included a cash flow of more than $40 million, profit of $24 million and earnings per share of 4.8 cents.

Gandel called the financials a “very impressive annual result from (a) small but capable team.”

 

The chairman acknowledged the company’s increased cash balance could underpin development of its flagship Dubbo Rare Earths Project in Central West NSW, which includes hafnium, niobium and zirconium among those found in its polymetallic ore body.

Gandel said, “We are financially well positioned to persist to seek an offtake at fair terms, and are interfacing with the Australian Government and Export Credit Agencies to further our project.

“Your board remains very optimistic in the prospects for the Dubbo project and, more broadly, for your company.”

Dubbo project’s pre-tax net present value (NPV) has been forecast at between $909 million and $1.297 billion, depending on the development route its owner takes.

A 20-year base case of 1 million tonnes a year will require a $1.3 billion capital expenditure (capex), to generate $663 million revenue, with $341 million operating costs.

Earnings before interest, tax, depreciation and amortisation (EBITDA) is tipped at $320 million, while the internal rate of return (IRR) is 17.5% and NPV is $1.24 billion.

Alkane hopes to take a two-stage modular approach to ramp-up, starting at an annual production rate of 500,000 tonnes a year.

The company has argued the modular approach would involve large elements of off-site construction, reducing built time and start-up capex.

WATCH: Alkane Resources says 'demand must come' for rare earths as EV revolution continues

Dubbo project is one of only a few global rare earths projects not backed by a major Chinese shareholding or offtake agreement.

Alkane managing director Nic Earner spoke to Proactive Investors’ Stocktube video channel in August about the US’ push for non-Chinese-sourced minerals it considers vital to national security.

China currently supplies about 85-90% of the world’s rare earths to global markets, with the supply shift and price pressure a potential opportunity for the NSW-focused company that may prompt development of its project.

The push for non-Chinese battery metals inputs is expected to push up prices and lead to the development of more rare earth projects in international destinations and Western countries such as Australia.

READ: Alkane Resources hits high-grade gold in Tomingley regional drill program

Gandel said of the Dubbo project today, “We remain convinced that changes in the world environment indicate the time is right for its development.

“Electric vehicle production and sales are growing steadily, meaning manufacturers will be under pressure to source sufficient volumes of critical minerals.

“Already, manufacturers are looking to mitigate supply chain risk through diversification of supply.

“Whilst China will continue to be a dominant player for the foreseeable future, the Dubbo project represents an alternative, sustainable and reliable source of materials that are in high demand – not only for electric vehicles but also for a range of other existing and future technologies.”

Alkane has secured the land the project is located on and obtained a suite of approvals, including approvals to build the mine, and state and federal environmental approvals.

The company also completed engineering for the project, running a pilot plant at the Australian Nuclear Science and Technology Organisation facility in Sydney’s southern suburbs for more than a decade.

 

Earner gave a corporate address at the company’s AGM today, affirming demand for clean energy and transport was increasing.

The MD flagged the high purity of hafnium at its Dubbo project and highlighted its project activities would be funded by cashflows from the company’s nearby Tomingley Gold Operations 

Alkane’s cash cow Tomingley produced 78,533 ounces in the 2018 financial year, for a pre-tax cash flow of $60.1 million.

The operation’s profit before income tax and non-recurring items was $39.1 million.

Alkane’s leader tipped the company would increase the size of its resource at Tomingley with depth drilling.

He also flagged the company had confirmed a mineralisation corridor at the project.

READ: Alkane Resources reveals gold resource at Peak Hill mine near Tomingley Gold Operations

Earner laid out the company’s strategy to increase shareholder value.

Its actions included underground mining at Tomingley, continued exploration in its vicinity, an evaluation of the feasibility of extending Peak Hill Gold Mine to the south of Tomingley, and investment in junior gold mining companies and projects with potential.

Last month, the company’s board approved an $8 million investment in gold explorer Explaurum Ltd (ASX:EXU).

The investment is expected to help accelerate exploration and finalise a bankable feasibility study for Tampia Gold Project in WA’s Wheatbelt area, 240 kilometres east of Perth.

Alkane’s recent deals have also included a $3.7 million transaction with Calidus Resources Ltd (ASX:CAI) as it applies investment criteria to assessing projects and companies.

The company’s wholly-owned subsidiaries on June 30, 2018, were: the WA companies Australian Zirconia Holdings Pty Ltd and Australian Strategic Materials Ltd; and the NSW companies Tomingley Holdings Pty Ltd, Tomingley Gold Operations Pty Ltd and the Toongi Pastoral Company Pty Ltd.

Alkane’s top-four shareholders at end of the financial year were Abbotsleigh Pty Ltd (19.01%), Citicorp Nominees Pty Limited (8.05%), HSBC Custody Nominees Pty Limited (7.39%) and JP Morgan Nominees Australia Limited (3.73%).

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Tue, 20 Nov 2018 23:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209637/alkane-resources-gold-is-fuelling-prospects-for-dubbo-rare-earths-development-209637.html
<![CDATA[News - Alkane Resources to invest $8 million in gold junior Explaurum ]]> https://www.proactiveinvestors.com.au/companies/news/207978/alkane-resources-to-invest-8-million-in-gold-junior-explaurum-207978.html Alkane Resources Limited’s (ASX:ALK) board has approved an $8-million investment into gold exploration company Explaurum Ltd (ASX:EXU).

The investment will provide funding to accelerate exploration and finalise the bankable feasibility study for the Tampia Gold Project.

Coming after Alkane’s $3.7 million transaction with Calidus Resources Ltd (ASX:CAI) earlier this month, the Explaurum investment is part of Alkane’s strategy of investing in junior gold companies with projects that have passed due diligence review and Alkane’s investment criteria.

These criteria include high exploration potential as well as requiring near-term development funding and Explaurum has announced positive exploration and feasibility results in recent months.

 

Explaurum is currently the target of a takeover offer from Ramelius Resources Limited (ASX:RMS), which Explaurum’s directors have unanimously recommended be rejected by the junior’s shareholders.

Alkane’s investment will be the subject of a vote at an Explaurum shareholder meeting in the coming weeks and Explaurum’s directors have unanimously recommended that shareholders vote in favour of Alkane’s investment.

Alkane managing director Nic Earner said: “The Explaurum investment is an exciting opportunity for Alkane shareholders, which we have been examining for some months, well before the Ramelius offer was announced.

“Working collaboratively alongside the existing Explaurum board and management team, Alkane brings additional capital and operating capability that will assist in the finalisation of the Tampia Gold Project feasibility study and the critical project financing process in 2019.”

READ: Alkane Resources completes $3.7 million investment into Calidus to develop Warrawoona Gold Project

Alkane’s investment will be made through a placement of 66,666,675 ordinary Explaurum shares at an issue price of 12 cents per share, giving Alkane a 12.2% holding in Explaurum.

An additional 53,406,594 Explaurum options will be given to Alkane in two tranches, with 35% of the options exercisable at 13 cents per share and the remaining 65% exercisable at 14 cents per share.

If the options are exercised on or before November 1, 2019, Alkane’s holding will rise to 19.96%.

Alkane has provided an $800,000 deposit for the placement which will be offset against the placement proceeds once shareholder approval is obtained.

Alkane will also be entitled to receive a break fee of $400,000 under certain circumstances, including where Explaurum’s directors recommend a competing proposal.

READ: Alkane Resources hits high-grade gold in Tomingley regional drill program

Once the investment is finalised, Alkane and Explaurum will form a technical steering committee with a view to progress the feasibility and development of the Tampia Gold Project.

The arrangement is expected to add further experience and current commercial cost understanding to Explaurum’s smaller but highly-capable team and consultants.

Alkane has had recent and extensive experience in project approvals, feasibility studies, commercial arrangements, commissioning and operation commencement with its development of the Tomingley Gold Operations and Dubbo Project.

Further to the arrangement, Alkane will have the right to nominate a director to Explaurum’s board if Alkane’s interest is at 12% or higher.

  READ: Alkane Resources reveals gold resource at Peak Hill mine near Tomingley gold operations

Tampia is about 250 kilometres east of Perth in the Central Wheatbelt region of WA.

The project has an initial ore resource containing 675,000 ounces at 1.79 g/t gold as announced last May.

Alkane believes Tampia has strong exploration upside and opportunities to make further discoveries on the Explaurum tenement package.

The investment into Explaurum and Tampia’s development is expected to complete all necessary exploration, studies and financing arrangements ahead of a final investment decision in the second quarter of calendar year 2019.

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Sun, 28 Oct 2018 21:53:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207978/alkane-resources-to-invest-8-million-in-gold-junior-explaurum-207978.html
<![CDATA[News - Alkane Resources enters trading halt ahead of equity investment in listed exploration company ]]> https://www.proactiveinvestors.com.au/companies/news/207898/alkane-resources-enters-trading-halt-ahead-of-equity-investment-in-listed-exploration-company-207898.html Alkane Resources Limited (ASX:ALK) has been granted a trading halt by the Australian Securities Exchange pending an announcement regarding an equity investment in a listed mineral exploration company.

Trading will remain halted until the earlier of Tuesday, October 30, or an announcement is released to the market.

READ: Alkane Resources hits high-grade gold in Tomingley regional drill program

The gold producer recently announced high-grade gold intersections in regional prospects surrounding its Tomingley Gold Operations in Central West NSW.

These finds will potentially provide additional ore feed for Tomingley.

READ: Alkane Resources reveals gold resource at Peak Hill mine near Tomingley Gold Operations

Alkane also revealed last week a gold resource of 108,000 ounces at the Peak Hill Gold Mine, 15 kilometres south of Tomingley.

Peak Hill was an operational open pit gold mine operated by Alkane from 1996 to 2005 and is currently under care and maintenance.

The mine was operated using open pit mining with 153,000 ounces of gold recovered by heap leach and dump leach of the oxidised ore.

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Thu, 25 Oct 2018 22:16:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207898/alkane-resources-enters-trading-halt-ahead-of-equity-investment-in-listed-exploration-company-207898.html
<![CDATA[News - Alkane Resources hits high-grade gold in Tomingley regional drill program ]]> https://www.proactiveinvestors.com.au/companies/news/207430/alkane-resources-hits-high-grade-gold-in-tomingley-regional-drill-program-207430.html Alkane Resources Limited (ASX:ALK) has received high-grade gold hits in drilling of regional prospects with potential to provide additional feed to the Tomingley Gold Operations (TGO) in Central West NSW.

Diamond core drilling of the Roswell prospect four kilometres from the TGO mine is part of an extensive regional exploration program focused on the immediate mine area south of the operations.

Aircore drilling at the San Antonio prospect has defined further gold mineralisation while reverse circulation (RC) drilling will begin shortly at this prospect along with Roswell and El Paso.

READ: Alkane Resources looks underground after stellar year at Tomingley Gold Operations

These three prospects within the Tomingley Gold Project appear to have a cumulative strike length of 2,500 metres.

At Roswell, the diamond drilling has confirmed two high-grade gold intersections:

- 11.55 metres at 2.15 g/t gold from 323.45 metres, including 2.25 metres at 4.00 g/t from 325.05 metres and 1.90 metres at 4.89 g/t from 330 metres; and - 7.65 metres at 2.50 g/t from 340.60 metres, including 2.95 metres at 4.48 g/t from 345.30 metres.

Mineralisation has now been defined over a north-south strike length of 500 metres.

This may extend an additional 300 metres north to include the McLeans South prospect area.

Aircore drilling in the region comprising 66 holes for 5,839 metres at San Antonio prospect, five kilometres south of the mine, has defined further mineralisation.

Best results were 3 metres at 1.81 g/t from 57 metres to the end of hole; 15 metres at 1.29 g/t from 57 metres; and 3 metres at 1.10 g/t from 57 metres.

RC drilling to begin

Alkane will shortly begin RC drilling at Roswell, San Antonio and El Paso prospects as it seeks to further understand the potential for gold resources.

At Roswell, 23 holes are planned for about 4,500 metres and this work is expected to begin later this month.

There will be 21 RC holes drilled at San Antonio for about 5,000 metres and one 300-metre diamond core hole.

READ: Alkane Resources completes $3.7 million investment into Calidus to develop Warrawoona Gold Project

A nine-hole RC program for about 2,500 metres will be drilled at El Paso to test a high-grade gold structure where the cover sequence is substantially shallower.

The Tomingley project covers about 440 square kilometres stretching 60 kilometres along the Newell Highway from Tomingley in the north, through Peak Hill and almost to Parkes in the south.

It includes the TGO, an open pit mine with a 1 million tonnes per annum processing facility.

This operation is transitioning to underground during 2019.

Alkane is conducting an extensive regional exploration program with the objective of defining additional resources that have potential to be mined via open pit or underground operations and fed to TGO.

This program has included the addition of about 110 square kilometres to the tenement package to the east of TGO.

READ: Alkane Resources reveals gold resource at Peak Hill mine near Tomingley Gold Operations

The region has many small historical workings but modern mining started with development of the Northparkes porphyry style copper-gold operations in 1994 to the present and Alkane’s Peak Hill heap leach gold operation from 1996 to 2005.

Alkane has recently defined a 108,000-ounce underground resource at Proprietary deposit at the Peak Hill mine, with scope to expand this at depth and at satellite deposits within an extensive alteration zone.

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Fri, 19 Oct 2018 11:58:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207430/alkane-resources-hits-high-grade-gold-in-tomingley-regional-drill-program-207430.html
<![CDATA[News - Alkane Resources reveals gold resource at Peak Hill mine near Tomingley Gold Operations ]]> https://www.proactiveinvestors.com.au/companies/news/207330/alkane-resources-reveals-gold-resource-at-peak-hill-mine-near-tomingley-gold-operations-207330.html Alkane Resources Limited (ASX:ALK) has revealed a resource of 108,000 gold ounces at the Peak Hill Gold Mine (PHGM), 15 kilometres south of its operating Tomingley gold mine in New South Wales.

PHGM was a fully operational open pit gold mine operated by Alkane from 1996 to 2005 that is currently under care are and maintenance.

The mine was operated using open pit mining with 153,000 ounces of gold recovered by heap leach and dump leach of the oxidised ore.

READ: Alkane Resources looks underground after stellar year at Tomingley Gold Operations

There are four pits at PHGM, the main Proprietary-Parkers Pit and three satellite pits, Bobby Burns, Crown and Great Eastern.

Alkane has defined a resource of 1.02 million tonnes grading 3.29 g/t gold (108,000 ounces gold) and 0.15% copper at the Proprietary ore body using a 2 g/t gold cut-off.

READ: Alkane Resources completes $3.7 million investment into Calidus to develop Warrawoona Gold Project

The underground resource has been estimated only for the main mineralised domain of the Proprietary ore body which extends to a maximum depth of 200 metres below the base of the current Proprietary pit.

Notably, there is scope to expand the resource at depth and in the satellite deposits within an extensive alteration zone.

 

Core drilling is scheduled to commence in October to provide confirmation of the geology and structures at Peak Hill, and fresh material for advanced metallurgical testing.

This re-evaluation of the potential for Peak Hill to be developed underground forms part of Alkane’s extensive regional exploration program which is in progress to provide additional ore feed for its Tomingley Gold Operations.

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Thu, 18 Oct 2018 12:47:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207330/alkane-resources-reveals-gold-resource-at-peak-hill-mine-near-tomingley-gold-operations-207330.html
<![CDATA[News - Alkane Resources completes $3.7 million investment into Calidus to develop Warrawoona Gold Project ]]> https://www.proactiveinvestors.com.au/companies/news/207243/alkane-resources-completes-37-million-investment-into-calidus-to-develop-warrawoona-gold-project-207243.html Alkane Resources Ltd (ASX:ALK) has completed an investment into gold exploration company Calidus Resources Ltd (ASX:CAI) for 125 million ordinary shares at a placement price of 2.95 cents a share.

The investment totals $3,687,500 and is part of Alkane’s growth strategy for increasing shareholder value through investing its cash balance in junior gold mining companies.

Calidus was selected for its excellent prospectivity and clear path through feasibility to development, which fits with Alkane’s criteria of investments with high exploration potential and near-term development funding requirements.

 

Alkane managing director Nic Earner said the Calidus investment was an exciting opportunity for Alkane’s shareholders.

“Working collaboratively alongside the existing Calidus board and management team, Alkane brings additional capital and operating capability that will bolster the Warrawoona Gold Project as it moves through the critical feasibility phases in 2019.”

READ: Alkane Resources looks underground after stellar year at Tomingley Gold Operations

The acquisition of the shares will give Alkane about 8.8% undiluted interest in Calidus and comes packaged with share options for a further 70 million shares at 3.5 cents a share, expiring on November 1, 2019.

On a fully diluted basis, which includes all ordinary shares plus the executed share options, Alkane’s 195 million shares will equate to about 10% of Calidus.

Alkane will also hold the right to seek a director's position if its holding is above 10%.

READ: Alkane Resources green light for Tomingley Gold Operations underground development

Alkane and Calidus plan to form a technical committee to accelerate development of the Warrawoona Gold Project.

This arrangement is expected to bring greater experience and up-to-date commercial cost understanding to the smaller Calidus team.

Alkane brings extensive experience in project approvals, feasibility studies, commercial arrangements and commissioning and operation commencement from its development of the Tomingley Gold Operations and work undertaken at its Dubbo Project.

READ: Alkane Resources director Anthony Dean Lethlean snaps up more shares from the market

Calidus controls the Warrawoona Gold Project 30 kilometres southeast of Marble Bar in the East Pilbara district in Western Australia.

The project has a 712,000-ounce resource and high exploration upside, with outcropping mineralisation at surface at all deposits which are open along strike and down-dip.

Many identified targets have also not yet been tested and the existing surface mineralisation suggests any initial mining operation will be open cut.

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Tue, 16 Oct 2018 23:41:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207243/alkane-resources-completes-37-million-investment-into-calidus-to-develop-warrawoona-gold-project-207243.html
<![CDATA[News - Alkane Resources granted trading halt with news of equity investment pending ]]> https://www.proactiveinvestors.com.au/companies/news/207030/alkane-resources-granted-trading-halt-with-news-of-equity-investment-pending-207030.html Alkane Resources Limited (ASX:ALK) has been granted a trading halt pending an announcement regarding an equity investment in a listed mineral exploration company.

The halt will remain in place until the start of normal trading on Wednesday, October 17, or when an announcement is released to the market, whichever occurs earliest.

Shares last traded at 22 cents at market close on Friday.

Gold and rare earths

Alkane has the Tomingley Gold Operations in Central West NSW as well as the nearby pre-development Dubbo Project, which hosts a large resource of zirconium, hafnium, niobium, yttrium and rare earth elements.

READ: Alkane Resources looks underground after stellar year at Tomingley Gold Operations

The company is gearing up to begin underground mining at Tomingley, south of Dubbo, in mid-2019.

Ground support work for the portal will begin by the end of 2018 with development starting shortly after in early 2019.

First ore is expected to be produced from underground in mid-2019 and stockpiled on the surface until processing recommences in the final quarter of 2019.

The gold will be recovered over a 40-month development at cash costs estimated to be $1,100 to $1,200 per ounce while the cash outflow to recover first ore is estimated at $25 million.

During the 2018 financial year, the open pit operations at Tomingley produced 78,533 ounces of gold for $128.8 million revenue at an all in sustaining cost (AISC) of $1,002 per ounce.

Ore reserves total 2.21 million tonnes grading 1.8 g/t for 144,000 ounces and include the underground reserves of 730,000 tonnes at 3.2 g/t for 74,000 ounces.

Cash flow from the gold mining has provided the funding to maintain the project development pipeline and has assisted with pre-construction development of the Dubbo Project.

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Mon, 15 Oct 2018 13:29:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207030/alkane-resources-granted-trading-halt-with-news-of-equity-investment-pending-207030.html
<![CDATA[News - Alkane Resources looks underground after stellar year at Tomingley Gold Operations ]]> https://www.proactiveinvestors.com.au/companies/news/206531/alkane-resources-looks-underground-after-stellar-year-at-tomingley-gold-operations-206531.html Alkane Resources Limited (ASX:ALK) had another stellar 12 months of production in the 2018 financial year from Tomingley Gold Operations (TGO) in Central West NSW.

As the company gears up to begin underground mining at TGO in mid-2019, Alkane reports the production of 78,533 ounces of gold in FY2018 for $128.8 million revenue at an all in sustaining cost (AISC) of $1,002 per ounce.

Operating pre-tax cash flow after development costs in the 12 months was $39.7 million.

Due to the completion of open cut mining in the March quarter of 2019, guidance for FY19 is 30,000 to 35,000 ounces of gold at an AISC of A$1,300 to A$1,400 per ounce.

Included in this is budgeted expenditure of $5 million on rehabilitation.

Resources and reserves update

Alkane has completed a re-estimation of mineral resources and ore reserves for the TGO to account for depletion, increased geological knowledge with depth and actual operating costs and conditions.

Total mineral resources stand at 6.78 million tonnes at a grade of 1.5 g/t for 437,000 ounces.

Ore reserves total 2.21 million tonnes grading 1.8 g/t for 144,000 ounces and include the underground reserves of 730,000 tonnes at 3.2 g/t for 74,000 ounces.

The primary differences from 2017 to 2018 are:

- Ore mined from Caloma One, Caloma Two and Wyoming One during the period.

- Caloma One mining completion.

- Update of geological models and Block model estimations.

- Increase in grade control removing almost all inferred material in all remaining pits.

- Completion of the underground study and feasibility based upon substantial infill core drilling at the Wyoming One deposit.

The current life of mine plan sees the open cut pits finishing in the March quarter of 2019.

A small cutback of the Caloma One pit to the northeast utilising smaller equipment has been designed and whilst not scheduled is an option for TGO should economics allow it in the future.

Low-grade stockpiles of about 1.257 million tonnes are also available for milling but are at present not scheduled until the potential underground material is available to be blended with it.

Regional exploration

Alkane is confident of adding to the resource base and mining life at TGO.

A major regional aircore, RC and core drilling program is in progress testing an initial area from the southern boundary of the TGO mine site to the Cemetery target, which is just north of the Peak Hill mine site.

Three major target zones - Roswell, San Antonio and El Paso - have been identified and recent drilling results are being compiled with follow-up drilling scheduled.

At the former Peak Hill mine to the south of TGO, a review of the underground mineral resource potential based on the historical drilling database is in progress.

READ: Alkane Resources green light for Tomingley Gold Operations underground development

The company’s board recently approved the underground mining development at TGO.

Ground support work for the portal will begin by the end of 2018 with development starting shortly after in early 2019.

First ore is expected to be produced from underground in mid-2019 and stockpiled on the surface until processing recommences in the final quarter of 2019.

The gold will be recovered over a 40-month development at cash costs estimated to be $1,100 to $1,200 per ounce while the cash outflow to recover first ore is estimated at $25 million.

Alkane has two advanced projects - Tomingley, which began production in early 2014, and the nearby Dubbo Project, a large resource of zirconium, hafnium, niobium, yttrium and rare earth elements.

Tomingley cash flow has provided the funding to maintain the project development pipeline and has assisted with pre-construction development of the Dubbo Project.

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Mon, 08 Oct 2018 12:51:00 +1100 https://www.proactiveinvestors.com.au/companies/news/206531/alkane-resources-looks-underground-after-stellar-year-at-tomingley-gold-operations-206531.html
<![CDATA[Media files - Alkane Resources "very well placed" to move underground at Tomingley gold mine ]]> https://www.proactiveinvestors.com.au/companies/stocktube/10727/alkane-resources-very-well-placed-to-move-underground-at-tomingley-gold-mine-10727.html Thu, 04 Oct 2018 13:15:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/10727/alkane-resources-very-well-placed-to-move-underground-at-tomingley-gold-mine-10727.html <![CDATA[News - Alkane Resources green light for Tomingley Gold Operations underground development ]]> https://www.proactiveinvestors.com.au/companies/news/205482/alkane-resources-green-light-for-tomingley-gold-operations-underground-development-205482.html Alkane Resources Limited’s (ASX:ALK) Board has given the green light for underground mining development at Tomingley Gold Operations in Central West NSW, paving the way for recovery of a further 93,000 ounces.

Ground support work for the portal will begin by the end of 2018 with development starting shortly after in early 2019.

First ore is expected to be produced from underground in mid-2019 and stockpiled on the surface until processing recommences in the final quarter of 2019.

READ: Alkane Resources’ gold drilling results confirm near-mine potential at Tomingley

The gold will be recovered over a 40-month development at cash costs estimated to be $1,100 to $1,200 per ounce while the cash outflow to recover first ore is estimated at $25 million.

Alkane is well placed to execute the underground development as it had a cash and bullion position of $80 million at the end of the June quarter.

Most major equipment required has been purchased and is undergoing refurbishment while recruitment of experienced underground operators and support crew is underway.

One of Alkane’s first priorities underground is to establish a drill position to target further extensions along strike and at depth.

Geologically, mineralisation is open under all three open cut pits at Tomingley, which is southwest of Dubbo.

The underground resource stands at 1.24 million at 2.7 g/t gold for 108,000 contained ounces of gold.

Division of the material contained in the mine plan by resource classification is detailed below:

Alkane has a wider regional development strategy for the historical gold mining area that encompasses Tomingley and nearby Peak Hill with extensive exploration continuing for the remainder of the year.

Open cut operations will continue on day shift at the Tomingley operations until early 2019 as exposed ore is removed from the base of the pits.

The processing of medium grade stockpiles will continue until about April 2019 and then resume on underground ore.

Guidance for the 2019 financial year, the final year of open cut operations, remains unchanged at 30,000 to 35,000 ounces of gold at an AISC of $1,300 to $1,400 per ounce.

READ: Alkane Resources leveraged to US rare earths purchase bans which create new demand potential

Alkane has two advanced projects - Tomingley, which began production in early 2014, and the nearby Dubbo Project, a large in-ground resource of zirconium, hafnium, niobium, yttrium and rare earth elements.

Cash flow from Tomingley has provided the funding to maintain the project development pipeline and has assisted with the pre-construction development of the Dubbo Project.

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Mon, 24 Sep 2018 09:35:00 +1000 https://www.proactiveinvestors.com.au/companies/news/205482/alkane-resources-green-light-for-tomingley-gold-operations-underground-development-205482.html
<![CDATA[News - Alkane Resources director Anthony Dean Lethlean snaps up more shares from the market ]]> https://www.proactiveinvestors.com.au/companies/news/204987/alkane-resources-director-anthony-dean-lethlean-snaps-up-more-shares-from-the-market-204987.html Alkane Resources Limited (ASX:ALK) director Anthony Dean Lethlean is continuing to demonstrate his confidence in the company via the acquisition of more shares.

The latest acquisition of 40,000 shares valued at $8,200 has increased Lethlean’s total shareholding to 640,076 shares (indirect interest).

READ: Alkane Resources director shows faith in multi-commodity strategy with on-market share purchase

The company’s Dubbo project in New South Wales is construction-ready and represents a source of rare earths and zirconium.

The Dubbo Project has an 18.90Mt ore reserve and 75.18Mt resource, giving an estimated 20-year project life and significant extension and expansion potential. $ALK $ANLKY #hafnium #zirconium #niobium #rareearths @northernminer @johndcumming https://t.co/OmOBTx45hZ pic.twitter.com/Zn30WwknEg

— Alkane Resources (@AlkaneResources) July 25, 2018

Alkane is also leveraged to the new US defence law that prevents the purchase of rare earth magnets from prohibited countries, like China, Russia, North Korea and Iran.

US President Donald Trump has signed into law the John S McCain National Defense Authorization Act, which sets an increased budget for defence expenditure.

As a potential independent supply source of rare earths from its $1.3 billion Dubbo project, Alkane sees the new US act as increasing demand.

READ: Alkane Resources’ gold drilling results confirm near-mine potential at Tomingley

The company recently intersected high-grade gold intercepts at the Roswell Prospect, part of its Tomingley Gold Operations (TGO) in New South Wales.

Highlight results include 16 metres grading 1.90 g/t gold from 76 metres containing 7 metres grading 3.43 g/t gold from 78 metres.

A 13,000-metre evaluation air core drilling program has commenced in the Tomingley to Peak Hill prospective corridor.

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Mon, 17 Sep 2018 16:11:00 +1000 https://www.proactiveinvestors.com.au/companies/news/204987/alkane-resources-director-anthony-dean-lethlean-snaps-up-more-shares-from-the-market-204987.html
<![CDATA[News - Alkane Resources director shows faith in multi-commodity strategy with on-market share purchase ]]> https://www.proactiveinvestors.com.au/companies/news/204488/alkane-resources-director-shows-faith-in-multi-commodity-strategy-with-on-market-share-purchase-204488.html Alkane Resources Limited (ASX:ALK) director Anthony Dean Lethlean has demonstrated his confidence in the company’s multi-commodity strategy by acquiring shares on-market.

The acquisition of 80,000 shares valued at $16,800 has increased Lethlean’s total shareholding to 600,076 shares (indirect interest).

 

Alkane is leveraged to the new US defence law that prevents the purchase of rare earth magnets from prohibited countries, like China, Russia, North Korea and Iran.

US President Donald Trump has signed into law the John S McCain National Defense Authorization Act, which sets an increased budget for defence expenditure.

As a potential independent supply source of rare earths from its $1.3 billion Dubbo project in New South Wales, Alkane sees the new US act as increasing demand.

READ: Alkane Resources’ gold drilling results confirm near-mine potential at Tomingley

The company recently intersected high-grade gold intercepts at the Roswell Prospect, part of its Tomingley Gold Operations (TGO) in New South Wales.

Highlight results include 16 metres grading 1.90 g/t gold from 76 metres containing 7 metres grading 3.43 g/t gold from 78 metres.

A 13,000-metre evaluation air core drilling program has commenced in the Tomingley to Peak Hill prospective corridor.

Reverse circulation drilling will follow up the more promising targets.

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Mon, 10 Sep 2018 15:59:00 +1000 https://www.proactiveinvestors.com.au/companies/news/204488/alkane-resources-director-shows-faith-in-multi-commodity-strategy-with-on-market-share-purchase-204488.html
<![CDATA[Media files - Alkane Resources' financing and offtake talks on Dubbo Project helped by new US law ]]> https://www.proactiveinvestors.com.au/companies/stocktube/10220/alkane-resources-financing-and-offtake-talks-on-dubbo-project-helped-by-new-us-law-10220.html Fri, 24 Aug 2018 08:31:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/10220/alkane-resources-financing-and-offtake-talks-on-dubbo-project-helped-by-new-us-law-10220.html <![CDATA[News - Alkane Resources leveraged to US rare earths purchase bans which create new demand potential ]]> https://www.proactiveinvestors.com.au/companies/news/203100/alkane-resources-leveraged-to-us-rare-earths-purchase-bans-which-create-new-demand-potential-203100.html Alkane Resources Limited (ASX:ALK) is leveraged to the new US defence law that prevents the purchase of rare earth magnets from prohibited countries, like China, Russia, North Korea and Iran.

As an independent supply source of rare earths from its $1.3 billion Dubbo project, Alkane sees the new US act as increasing demand.

US President Donald Trump has signed into law the John S McCain National Defense Authorization Act, which sets an increased budget for defence expenditure.

Section 871 of the act prevents the purchase of rare earths magnets from prohibited countries.

READ: Alkane Resources confirms up to $1.2 billion valuation for Dubbo Project

Multi-commodity explorer and miner Alkane sees this as a boost for its Dubbo project, which contains deposits of rare earths, hafnium, niobium and zirconium, since it represents an independent source.

A principal use for rare earths metals from the project is magnets, used across the automobile, renewable energy, aerospace, robotics and telecommunications industries globally.

Currently, China produces 85-90% of the world’s rare earth magnets and 90% of rare earths magnets consumed by the US military are produced by China.

World demand is outstripping supply and a shortfall of rare earths magnets is predicted by 2020.

This development follows a statement earlier this year by Prime Minister Turnbull at the time of his visit to the US, which indicated an intended joint cooperation with the US on rare earths and high-performance metals.

 

According to Alkane managing director Nic Earner, US needs could not be met without investment in new rare earths projects.

“Alkane’s Dubbo project is one of the few in the world which does not have a major Chinese shareholding or offtake committed to China,” he said.

“This US development also opens the door for Australia in the downstream value adding manufacture of rare earth magnets.”

Alkane’s Dubbo project, which has a mine life of more than 70 years, is construction ready with approvals in place and is awaiting financing.

READ: Alkane Resources’ gold drilling results confirm near-mine potential at Tomingley

Funding of the project to date has been assisted by Alkane’s nearby Tomingley Gold Mine, which generated $60.1 million in cash flow for the year to June 2018, and Alkane currently has cash reserves of $80 million.

In signing the act into law, President Trump described it as “the most significant investment in our military … in modern history”.

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Fri, 17 Aug 2018 10:46:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203100/alkane-resources-leveraged-to-us-rare-earths-purchase-bans-which-create-new-demand-potential-203100.html
<![CDATA[News - Alkane Resources’ gold drilling results confirm near-mine potential at Tomingley ]]> https://www.proactiveinvestors.com.au/companies/news/200539/alkane-resources-gold-drilling-results-confirm-near-mine-potential-at-tomingley-200539.html Alkane Resources Limited’s (ASX:ALK) recent drilling has intersected high-grade gold intercepts at the Roswell Prospect, part of its Tomingley Gold Operations (TGO) in New South Wales.

Highlight results include 16 metres grading 1.90 g/t gold from 76 metres containing 7 metres grading 3.43 g/t gold from 78 metres.

In parallel with the planned underground development at TGO, a substantial exploration program has focused on the resource potential of the immediate mine area.

Drilling to follow up promising targets

Assay results have been received from 2,514 metres of reverse circulation drilling at the Roswell, Myalls United and Glen Isla prospects.

In addition to Roswell, the drilling intersected encouraging broad, low-grade gold zones at the Glen Isla epithermal gold prospect, 6 kilometres east of TGO.

A 13,000-metre evaluation air core drilling program has commenced in the Tomingley to Peak Hill prospective corridor.

Reverse circulation drilling will follow up the more promising targets.

Rising demand for rare earths and zirconium

Alkane is also progressing the construction-ready Dubbo zirconium, niobium, hafnium and rare earths project in New South Wales.

A recent review of the Dubbo Project estimated a pre-tax net present value (NPV) of $909 million to $1.297 billion.

Alkane’s Dubbo Project is well positioned globally, at a time of rising demand for rare earths and zirconium.

The company is now looking for offtake agreements and finance partners to kick start production.

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Wed, 11 Jul 2018 16:08:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200539/alkane-resources-gold-drilling-results-confirm-near-mine-potential-at-tomingley-200539.html
<![CDATA[Media files - Alkane Resources says 'demand must come' for rare earths as EV revolution continues ]]> https://www.proactiveinvestors.com.au/companies/stocktube/9685/alkane-resources-says-demand-must-come-for-rare-earths-as-ev-revolution-continues-9685.html Mon, 25 Jun 2018 16:40:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/9685/alkane-resources-says-demand-must-come-for-rare-earths-as-ev-revolution-continues-9685.html <![CDATA[News - Alkane Resources director buys one million shares on-market ]]> https://www.proactiveinvestors.com.au/companies/news/198490/alkane-resources-director-buys-one-million-shares-on-market-198490.html Alkane Resources Ltd (ASX:ALK) has received a vote of confidence from its technical director David Chalmers who has purchased one million shares in the company.

Chalmers acquired the shares through on-market trades and paid $254,070 for his purchases.

This latest purchase increases his total shareholding in the company to over 4.1 million shares.

READ: Alkane Resources confirms up to $1.2 billion valuation for Dubbo Project

Alkane recently completed an engineering and financials review of its zirconium, niobium, hafnium and rare earths project, the Dubbo Project in New South Wales.

The review confirms a significant project, capable of supplying specialty metals globally as an independent source to China.

Funding Dubbo’s development with gold operations

Alkane has used its cash-generating Tomingley Gold Operation (TGO) in New South Wales to advance its Dubbo Project to a construction-ready stage.

The company’s Tomingley Gold Operations (TGO) in central west New South Wales is based on four gold deposits.

Since opening in January 2014 the operation has been an open cut mine and the company is progressing plans to take the mine underground.

Cash flow from Tomingley has contributed to developing Alkane’s $1.2 billion Dubbo project.

The project is development and construction ready.

TGO on target for up to 80,000 ounces in FY2018

TGO is based on four gold deposits - Wyoming One, Wyoming Three, Caloma and Caloma Two and is 50 kilometres southwest of Dubbo in central West New South Wales.

The TGO produced 69,000 ounces of gold in FY17 and FY18 production guidance is 75,000 to 80,000 ounces of gold at a reduced all-in sustaining cost (AISC) of $975 to $1,050 per ounce.

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Fri, 08 Jun 2018 08:49:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198490/alkane-resources-director-buys-one-million-shares-on-market-198490.html
<![CDATA[News - Alkane Resources confirms up to $1.2 billion valuation for Dubbo Project ]]> https://www.proactiveinvestors.com.au/companies/news/198134/alkane-resources-confirms-up-to-12-billion-valuation-for-dubbo-project-198134.html Alkane Resources Ltd (ASX:ALK) has completed an engineering and financials review of its zirconium, niobium, hafnium and rare earths project, the Dubbo Project in New South Wales.

The review confirms a significant project, capable of supplying specialty metals globally as an independent source to China.

Alkane’s managing director Nic Earner said: “The project review details the considerable body of technical work that has occurred on the Dubbo Project.

“In an external environment of rising commodity prices, interest in the project’s products is increasing as global manufacturers look for both material sources and supply chains outside China.”

$4.7 billion free cash flow

Using base case assumptions, the project could generate $4.7 billion free cash flow over the 20-year life with a forecast capital cost of $1.3 billion or $808 million for the stage I build.

The internal rate of return (IRR) is estimated between 16.1% and 17.5% depending on if the project is developed in a single stage or across modular stages.

Similarly the forecast net present value (NPV) for the project using an 8% discount rate and pre-tax ranges from $909 million to $1.297 billion depending on the chosen development process.

Market for project minerals evolving rapidly

The global market for the Dubbo’s products is undergoing considerable change and continues to evolve rapidly.

Magnet rare earths are forecast to grow at a 6‐10% compounded annually through to 2030, primarily driven by demand for electric vehicles.

Raw material for zirconia products is undergoing significant price rises, with zirconium oxychloride (ZOC), a potential Alkane product, having gone up 80% in the past 18 months.

Finally, there is little rare earth supply entering the market outside of China, even as prices rise, and the forecast demand curves show an ever‐widening gap from existing supply options.

Project review intended to advance project development

The project review is intended to sharpen current discussions globally with industry participants and funding bodies in Australia, Japan, Korea, US, Europe and China, with a view to enhancing prospects for a project start.

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Mon, 04 Jun 2018 09:45:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198134/alkane-resources-confirms-up-to-12-billion-valuation-for-dubbo-project-198134.html
<![CDATA[News - Alkane Resources is an award winning gold miner with a multi-commodity construction-ready project ]]> https://www.proactiveinvestors.com.au/companies/news/193818/alkane-resources-is-an-award-winning-gold-miner-with-a-multi-commodity-construction-ready-project-193818.html Alkane Resources Ltd (ASX:ALK) has used its cash-generating Tomingley Gold Operation (TGO) in New South Wales to advance its Dubbo Project to a construction-ready stage.

The company’s Tomingley Gold Operations (TGO) in central west New South Wales is based on four gold deposits.

Since opening in January 2014 the operation has been an open cut mine and the company is progressing plans to take the mine underground.

Cash flow from Tomingley has contributed to developing Alkane’s $1.3 billion Dubbo zirconium, rare earths, hafnium and niobium project.

The project is development and construction ready.

TGO on target for up to 80,000 ounces in FY2018

TGO is based on four gold deposits — Wyoming One, Wyoming Three, Caloma and Caloma Two and is 50 kilometres southwest of Dubbo in central West New South Wales.

The TGO produced 69,000 ounces of gold in FY17 despite severe rains affecting first-half production.

This resulted in FY17 revenue of $117.3 million and profit before tax and non-recurring items of $17.1 million.

FY18 production guidance was lifted in January 2018 to 70,000 to 80,000 ounces of gold at a reduced all-in sustaining cost (AISC) of $1,000 to $1,100 per ounce.

Extending the TGO underground

Alkane has confirmed that mineralisation continues below the Wyoming One open pit at the Tomingley Gold Operations (TGO) in New South Wales.

Diamond drilling has proved that gold systems continue 300 metres below the planned base of the existing pit.

The results to date add strength to the company’s plans to mine underground at TGO.

READ: Alkane Resources drill results may extend open pit to underground

They will be incorporated into a resource model which will form the basis of an underground mining study.

Mineralisation at these zones has a strike length of more than 300 metres and is open to the south.

Underground mining study expected in early 2018

In late 2017 results were received for the 23 hole core drilling program targeting the Hangingwall and Porphyry zones below the Wyoming One open pit.

The data is being incorporated into the resource model to form a basis for the underground mining study to be completed in the first half of 2018. 

Regional exploration around Tomingley

A 50 hole air‐core drill program totalling 3,430 metres together with two diamond tails for a further 602 metres has been completed.

To date prospects include El Paso where 11 metres at 2.82 g/t gold was intersected and McLeans South where 9 metres at 0.88 g/t gold was intersected.

Dubbo Project remains construction ready

The Dubbo Project also in central New South Wales remains construction ready with the mineral deposit and surrounding land wholly owned by Alkane.

All State and Federal approvals are in place and the project has an established flow sheet and a solid business case.

The project is a unique source of zirconium, hafnium, niobium, yttrium and rare earth elements.

Dubbo Project background

The Dubbo Project hosts the Toongi deposit which is a very large open pittable resource of zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements.

Over several years, Alkane has developed a flow sheet to recover all of these metals, except tantalum.

The flow sheet has been proved through a demonstration pilot plant since 2008 enabling optimisation of capital and operating costs, and supply of samples for product certification to end users.

A definitive feasibility study was completed in 2013 and a front end engineering design (FEED) in 2015.

The modularised build study output is being reviewed and incorporated into an updated project execution and financial model for release in early 2018.

Resource and Reserve statement supports start-up 20-year life

The 2017 total Mineral Resource for the project is 75.18 million tonnes at 1.89% zirconium oxide, 0.04% hafnium oxide, 0.44% neodymium oxide, 0.03% tantalum oxide and 0.88% total rare earth oxides including yttrium.

The 2017 total Ore Reserve for the project is 18.90 million tonnes at 1.85% zirconium oxide, 0.04% hafnium oxide, 0.44% neodymium oxide, 0.03% tantalum oxide and 0.87% total rare earth oxides including yttrium.

The primary differences from 2016 to 2017 statement are:

• Mineral Resources are 2.7% higher for the total, with Measured 19% higher. Metal grades are fundamentally the same;
• Proved Ore Reserves are 134% higher with metal grades similar; and
• Total Ore Reserves have been reduced 47% due to removal of the Probable Reserves — this reflects that the initial project site design and regulatory approvals, including appropriate waste storage facilities is for a start-up 20-year life.

A unique supply of Hafnium

Alkane developed a high‐purity hafnium dioxide product that will have use in production of superalloys and aerospace alloys.

READ: Alkane Resources develops new process to produce hafnium

Subsidiary Australian Strategic Materials Ltd (ASM) produced hafnium oxide exceeding 99.8% using a unique proprietary process to separate hafnium from zirconium.

This will be marketable as a feed material for a number of downstream applications and for producing metallic hafnium.

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Tue, 27 Mar 2018 08:04:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193818/alkane-resources-is-an-award-winning-gold-miner-with-a-multi-commodity-construction-ready-project-193818.html
<![CDATA[News - Alkane Resources wins mining operation of the year award ]]> https://www.proactiveinvestors.com.au/companies/news/193497/alkane-resources-wins-mining-operation-of-the-year-award-193497.html Alkane Resources Ltd (ASX:ALK) was recently awarded mining operation of the year as part of the New South Wales Minerals Council Suppliers Awards.

The company’s Tomingley Gold Operations (TGO) in central west New South Wales is based on four gold deposits.

Since opening in January 2014 the operation has been an open cut mine and the company is progressing plans to take the mine underground.

READ: Alkane Resources confirms depth potential at Tomingley Gold Operations

The TGO produced 69,000 ounces of gold in FY17 despite severe rains affecting first-half production.

This resulted in FY17 revenue of $117.3 million and profit before tax and non-recurring items of $17.1 million.

The TGO has become a part of the community supporting its future

Alkane’s managing director Nic Earner said: “The mine employs locals, many of whom we’ve trained to be part of the operation, and we have also given importance to the local environment and community events as part of our operations.”

Among factors contributing to Tomingley’s award win were:

• Fleet improvement and use of a mobile crushing plant to improve throughput and productivity;
• Ongoing drilling to optimise a focus on high grade ore;
• Local infrastructure improvements, including a community hall upgrade, sealing of village streets, new works at the Tomingley Racecourse & Recreation Reserve and providing top-up water supply to the village from a bore water supply line; and
• Upskilling of the local workforce and close working relationships with contractors.

$1.3 billion Dubbo project remains construction-ready

Cash flow from Tomingley has contributed to developing Alkane’s $1.3 billion Dubbo zirconium, rare earths, hafnium and niobium project.

The project is development and construction ready, with project financing underway and current projected construction start in 2019.

READ: Alkane Resources develops new process to produce hafnium

During January 2018 Alkane outlined that it had developed a high‐purity hafnium dioxide product from the Dubbo project’s ore.

The high-purity product will help meet a growing global shortage of hafnium.

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Wed, 21 Mar 2018 08:41:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193497/alkane-resources-wins-mining-operation-of-the-year-award-193497.html
<![CDATA[News - Alkane Resources develops new process to produce hafnium ]]> https://www.proactiveinvestors.com.au/companies/news/190132/alkane-resources-develops-new-process-to-produce-hafnium-190132.html Alkane Resources Limited (ASX:ALK) has developed a high‐purity hafnium dioxide product that will have use in production of superalloys and aerospace alloys.

Subsidiary Australian Strategic Materials Ltd (ASM) produced hafnium oxide exceeding 99.8% using a unique proprietary process to separate hafnium from zirconium.

This will be marketable as a feed material for a number of downstream applications and for producing metallic hafnium.

READ: Alkane Resources doubles Proved Ore Reserves of Dubbo Project

It has been developed from ore mined at Alkane’s Dubbo Project in the Central West of New South Wales.

The technical specifications of the product have been tailored to meet global market requirements.

Initial production to meet market demand

ASM will initially produce 25 tonnes of hafnium annually to meet projected market demand, ramping up to higher quantities as required.

Full annual plant capacity is conservatively estimated at 200 tonnes.

Global shortage anticipated

A global shortage of hafnium is anticipated as demand is poised to outstrip current supply, particularly for use in metallic form, which accounts for around 85% by volume.

This includes 60% use in superalloys, 15% in plasma cutting tips and 10% in nuclear control rods.

Hafnium metal for superalloys is trading in a US$800‐$900 per kilogram range and the ASM business case assumes a conservative product price of US$500 for its oxide.

Emerging aerospace applications are expected to consume further significant volumes of metallic hafnium.

Hafnium dioxide is emerging as a material of choice in semiconductors and data storage devices.

Many future industries such as those based on its thermo‐electric properties and super high temperature ceramics for supersonic aircraft and space vehicles will rely on materials containing hafnium.

Extensive industry consultation

In the past 12 months, ASM has consulted extensively with industry to confirm growing market demand for high‐purity hafnium.

Metallic hafnium is the fastest growing market for hafnium and the most significant by volume, particularly due to the use of hafnium in superalloys and other aerospace alloys.

The usual precursor is hafnium dioxide, which needs to be recovered from zirconium metal production streams.

The high‐purity hafnium dioxide developed by ASM provides the ideal feedstock for the high‐purity metallic hafnium that is in demand for alloying purposes. 

A high purity hafnium chemical precursor has also been developed.

Proprietary process at pilot plant

They were produced by a proprietary process at ASM’s Demonstration Pilot Plant at the Australian Nuclear Science and Technology Organisation (ANSTO) in Sydney.

The process pathway to recover hafnium from the Dubbo Project was developed in 2015 and proved during 2017.

It allows the flexible recovery of high‐purity hafnium dioxide from the high‐purity zirconium stream.

ASM will continue to work with industry to secure offtake agreements and develop further enhanced products, with the view to establishing a customer base for hafnium products ahead of plant commissioning.

Unique source of hafnium

The Dubbo Project represents a unique source of hafnium that is independent of all traditional markets – including China, the nuclear zirconium industry and the zircon industry.

The total mineral resource for the project is 75.18 million tonnes at 1.89% zirconium oxide, 0.04% hafnium oxide, 0.44% neodymium oxide, 0.03% tantalum oxide and 0.88% total rare earth oxides including yttrium.

The ore reserve is 18.90 million tonnes at 1.85% zirconium oxide, 0.04% hafnium oxide, 0.44% neodymium oxide, 0.03% tantalum oxide and 0.87% total rare earth oxides including yttrium.

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Wed, 17 Jan 2018 09:55:00 +1100 https://www.proactiveinvestors.com.au/companies/news/190132/alkane-resources-develops-new-process-to-produce-hafnium-190132.html
<![CDATA[News - Alkane Resources confirms depth potential at Tomingley Gold Operations ]]> https://www.proactiveinvestors.com.au/companies/news/188545/alkane-resources-confirms-depth-potential-at-tomingley-gold-operations-188545.html Alkane Resources Limited (ASX:ALK) has confirmed that mineralisation continues below the Wyoming One open pit at the Tomingley Gold Operations (TGO) in New South Wales.

Diamond drilling has proved that gold systems continue 300 metres below the planned base of the existing pit.

The results add strength to the company’s plans to mine underground at TGO.

They will be incorporated into a resource model which will form the basis of an underground mining study scheduled for completion during the first quarter of 2018.

READ: Alkane Resources drill results may extend open pit to underground

Results are from the final eight diamond core drill holes of a 23-hole program for 11,011 metres.

The program targeted the Hangingwall and Porphyry zones below Wyoming One open pit.

Best result was 5.14 metres at 8.85 g/t gold from 364.5 metres including 2 metres at 21.1 g/t.

Other results were 17.45 metres at 2.5 g/t from 309.1 metres including 7.35 metres at 4.85 g/t, and 18.42 metres at 2.43 g/t.

Mineralisation remains open to the south

Mineralisation at these zones has a strike length of more than 300 metres and is open to the south.

TGO is based on four gold deposits - Wyoming One, Wyoming Three, Caloma and Caloma Two - 50 kilometres southwest of Dubbo in Central West New South Wales.

TGO performs strongly

During the September quarter, the TGO performed strongly producing 24,122 ounces at an all-in sustaining cash cost of A$982 per ounce.

Guidance for the financial year ending 30 June 2018 remains at 65,000 to 70,000 ounces of gold at an AISC of A$1,100-1,200 per ounce.

As at 30 June 2017, the total mineral resource was 9.23 million tonnes grading 1.7 g/t gold for 508,000 ounces and the total ore reserve was 2.68 million tonnes grading 1.9 g/t gold for 166,000 ounces.

READ: Alkane Resources doubles Proved Ore Reserves of Dubbo Project

The company also has the nearby Dubbo Project which hosts zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements.

The mineral resource for this project is 75.18 million tonnes at 1.89% zirconium oxide, 0.04% hafnium oxide, 0.44% neodymium oxide, 0.03% tantalum oxide and 0.88% total rare earth oxides including yttrium.

The ore reserve is 18.90 million tonnes at 1.85% zirconium oxide, 0.04% hafnium oxide, 0.44% neodymium oxide, 0.03% tantalum oxide and 0.87% total rare earth oxides including yttrium.

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Mon, 11 Dec 2017 11:08:00 +1100 https://www.proactiveinvestors.com.au/companies/news/188545/alkane-resources-confirms-depth-potential-at-tomingley-gold-operations-188545.html
<![CDATA[News - Alkane Resources drill results may extend open pit to underground ]]> https://www.proactiveinvestors.com.au/companies/news/187412/alkane-resources-drill-results-may-extend-open-pit-to-underground-187412.html Alkane Resources (ASX:ALK) has received drill assays from the Wyoming One open-pit, which is within the Tomingley Gold Operations (TGO) located in New South Wales.

Significantly, drilling has proved continuity and extension to the mineralisation below the existing open cut operation, which supports the notion of a future underground mining operation.

Results include 47.15 metres at 3.12 g/t gold from 249 metres depth and 44.0 metres at 2.19 g/t gold from 306 metres depth.

These current results demonstrate gold mineralisation systems to points 300 metres below the planned base of the open pit. 

The data will be incorporated into the resource model to form a basis for the underground mining study to be completed later this year.

Drill result details

15 diamond core drill holes have been completed totalling 6,993 metres of a 23 hole program.

The program is designed to confirm continuity within the ore zones previously identified, adding to the drilling completed late 2016.

Results include:

- 16.7 metres at 2.52 g/t gold from 178.3 metres;
- 47.15 metres at 3.12 g/t gold from 249 metres including 15.0 metres at 5.71 g/t gold;
- 12.0 metres at 3.69 g/t gold from 189 metres including 5.3 metres at 5.63 g/t gold;
- 44.0 metres at 2.19 g/t gold from 306 metres including 18.25 metres at 3.56 g/t gold; and
- 12.4 metres at 3.40 g/t gold from 378.6 metres including 7.25 metres at 5.01 g/t gold.

Strong gold production during September quarter

The Tomingley Gold Operations (TGO) is based on four gold deposits - Wyoming One, Wyoming Three, Caloma and Caloma Two located 50 kilometres southwest of Dubbo in New South Wales.

Alkane beat its production guidance for FY17 at TGO delivering 68,836 ounces of gold with A$117.3 million revenue at an all-in sustaining cash cost (AISC) of A$1,335 per ounce.

During the recent September quarter, the TGO performed strongly producing 24,122 ounces at an AISC of A$982 per ounce.
 
Notably, site operating cash flow after development costs for the quarter was A$14.0 million.

Guidance for FY18 remains at 65,000 to 70,000 ounces of gold at an AISC of A$1,100-1,200 per ounce.

As at June 30, 2017, the total Mineral Resource was 9.23 million tonnes grading 1.7 g/t gold for 508,000 ounces and the total Ore Reserve was 2.68 million tonnes grading 1.9 g/t gold for 166,000 ounces.

READ NOW: Alkane Resources doubles Proved Ore Reserves of Dubbo Project ]]>
Fri, 17 Nov 2017 15:55:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187412/alkane-resources-drill-results-may-extend-open-pit-to-underground-187412.html
<![CDATA[News - Alkane Resources maintains focus to refresh board ]]> https://www.proactiveinvestors.com.au/companies/news/185677/alkane-resources-maintains-focus-to-refresh-board-185677.html Alkane Resources Ltd (ASX:ALK,OTCQX:ANLKY) is a multi-commodity mining company focussed in the central west of New South Wales.

The company has two major projects, including the Tomingley project which produces gold and the Dubbo Project which hosts zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements.

Alkane recently outlined a strategy to refresh the board with the appointment of additional independent members who will bring complementary skill sets and diversity to the leadership team.

As part of the process, Gavin Smith has been nominated for election as a non‐executive director of Alkane at the forthcoming AGM.

Smith has worked for the Bosch group, a leading global supplier of technology and services, for the past 28 years in Australia and Germany, and is the current chair and president of Robert Bosch Australia.

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Tue, 17 Oct 2017 11:31:00 +1100 https://www.proactiveinvestors.com.au/companies/news/185677/alkane-resources-maintains-focus-to-refresh-board-185677.html
<![CDATA[News - Alkane Resources doubles Proved Ore Reserves of Dubbo Project ]]> https://www.proactiveinvestors.com.au/companies/news/184271/alkane-resources-doubles-proved-ore-reserves-of-dubbo-project-184271.html Alkane Resources (ASX:ALK) has independently re-estimated the Toongi deposit within the Dubbo Project located in New South Wales.

The new JORC compliant estimate was to account for revised estimated operating costs, product revenues and regulatory approved site layouts.

A key highlight from the re-estimate was the 134% increase in the Ore Reserve Proved category, which reflects greater confidence project economics. 

This increased Proved Ore Reserve will support an initial 20-year mine life.

The total Mineral Resource also increased by 2.7% including a 19% increase to the highest confidence Measured category.

Dubbo Project background

The Toongi deposit is a very large open pittable resource of zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements.

Over several years, Alkane has developed a flow sheet to recover all of these metals, except tantalum.

The flow sheet has been proved through a demonstration pilot plant since 2008 enabling optimisation of capital and operating costs, and supply of samples for product certification to end users.

A definitive feasibility study was completed in 2013 and a front end engineering design (FEED) in 2015

Currently, a revised modularised and staged construction concept is in progress to provide a bankable level study.

Many of these metals are required for modern advanced technologies with supply chains subject to critical issues.

Resource and Reserve statement

The new total Mineral Resource for the project is 75.18 million tonnes at 1.89% zirconium oxide, 0.04% hafnium oxide, 0.44% neodymium oxide, 0.03% tantalum oxide and 0.88% total rare earth oxides including yttrium.

The new total Ore Reserve for the project is 18.90 million tonnes at 1.85% zirconium oxide, 0.04% hafnium oxide, 0.44% neodymium oxide, 0.03% tantalum oxide and 0.87% total rare earth oxides including yttrium.

The primary differences from 2016 to 2017 statement are:

- Mineral Resources are 2.7% higher for the total, with Measured 19% higher. Metal grades are fundamentally the same;
- Proved Ore Reserves are 134% higher with metal grades similar; and
- Total Ore Reserves have been reduced 47% due to removal of the Probable Reserves – this reflects that the initial project site design and regulatory approvals, including appropriate waste storage facilities is for a start-up 20-year life.

Alkane’s gold producing asset

The Tomingley Gold Operations (TGO) is based on four gold deposits - Wyoming One, Wyoming Three, Caloma and Caloma Two located 50 kilometres southwest of Dubbo in New South Wales.

Alkane beat its production guidance for FY17 at TGO delivering 68,836 ounces of gold with A$117.3 million revenue at an all-in sustaining cash cost (AISC) of A$1,335 per ounce.

FY17 operating cash flow after development costs was A$32.7 million returning a pre-tax profit of A$17.1 million.

Guidance for FY18 stands at 65,000 to 70,000 ounces of gold at an AISC of A$1,100-1,200 per ounce.

Mineral Resources and Ore Reserves for the TGO have also been re-estimated to account for depletion, increased geological knowledge with depth and actual operating costs and conditions.

The total Mineral Resource stands at 9.23 million tonnes grading 1.7 g/t gold for 508,000 ounces.

The total Ore Reserve stands at 2.68 million tonnes grading 1.9 g/t gold for 166,000 ounces.

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Wed, 20 Sep 2017 16:44:00 +1000 https://www.proactiveinvestors.com.au/companies/news/184271/alkane-resources-doubles-proved-ore-reserves-of-dubbo-project-184271.html
<![CDATA[News - Alkane Resources' Ian Chalmers passes the baton to Nic Earner ]]> https://www.proactiveinvestors.com.au/companies/news/182699/alkane-resources-ian-chalmers-passes-the-baton-to-nic-earner-182699.html Alkane Resources Ltd's (ASX:ALK, OTCQX:ANLKY) long-standing managing director, Ian Chalmers, will step down from the position, but remain on the board as technical director.

Chalmers was instrumental in transitioning Alkane into a gold producer at the Tomingley operations, and will now focus on the Dubbo Project and technical activities.

Replacing Chalmers will be Nic Earner, who joined the company as chief operating officer in 2013.

READ: Alkane Resources reveals epithermal style gold from Northern Molong Porphyry Project

Earner was responsible for the safe and efficient management of the company’s operations at Tomingley and Dubbo.

Under his supervision, Tomingley transitioned to a profitable and efficient operation.

John Dunlop will also be retiring effective from 1 September 2017.

As part of the rejuvenation process, Ian Gandel will assume the role of non-executive chairman, steering the company through the crucial funding stage of the Dubbo Project.

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Mon, 21 Aug 2017 11:32:00 +1000 https://www.proactiveinvestors.com.au/companies/news/182699/alkane-resources-ian-chalmers-passes-the-baton-to-nic-earner-182699.html
<![CDATA[News - Alkane Resources reveals epithermal style gold from Northern Molong Porphyry Project ]]> https://www.proactiveinvestors.com.au/companies/news/182421/alkane-resources-reveals-epithermal-style-gold-from-northern-molong-porphyry-project-182421.html Alkane Resources Ltd (ASX:ALK) has revealed results from its first diamond holes at the Northern Molong Porphyry Project, which is an exploration project where previous drilling has outlined a large low grade gold-copper porphyry system.

The project includes the Bodangora, Kaiser and Finns Crossing propoerties.

Drilling from the Boda prospect has delivered: 68 metres at 0.35g/t gold from 476 metres; including 33 metres at 0.51g/t gold and 6 metres at 2.14g/t gold.

Over at Kaiser, results included: 30 metres at 0.23g/t gold, 0.13% copper from 6 metres and 129 metres at 0.14g/t gold, 0.11% copper from 50 metres.

Search for another Cadia

Alkane’s exploration activity has established a geological framework for the region which highlights strong similarities with the Cadia district.

Ongoing exploration success has demonstrated the margins of major magnetic complexes provide a primary control for porphyry and epithermal mineralisation, with significant intersections being reported from the Duke Target along the western margin of the Kaiser Magnetic Complex and the Boda Target at the western margin of the Boda Magnetic Complex.

This provides a combined strike length of over 900 metres.

Record gold production

Moving to Alkane's gold production asset, Tomingley, the mine delivered record 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.

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Tue, 15 Aug 2017 10:25:00 +1000 https://www.proactiveinvestors.com.au/companies/news/182421/alkane-resources-reveals-epithermal-style-gold-from-northern-molong-porphyry-project-182421.html