logo-loader
viewAlkane Resources Ltd

Alkane Resources boosts quarterly gold production

The company had A$29.0 million in cash and gold at the end of March.

gold_nuggets,_sized_58f6a851923af.png
Drill results have shown positive signs for additional gold at Tomingley

Alkane Resources (ASX:ALK) has increased gold production by 59% to 18,721 ounces during the March quarter at its Tomingley Gold Operations in New South Wales.

While production was above forecast, it also reflected the recovery from the weather affected previous two quarters.

Site operating cash costs reduced by 33% from previous quarter at A$1,070 per ounce with all in sustaining costs (AISC) of A$1,201 per ounce.

Full year guidance for FY2017 remains at production of 53,000 to 58,000 ounces with an AISC of A$1,600 – A$1,750.

A substantial exploration program has been implemented to build on the existing resources and reserves inventory, testing underground ore positions at the Tomingley mine and at near mine and regional exploration targets.


Tomingley Gold Operations (TGO)

The 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.

TGO recorded 59% higher production levels compared to quarter two, as was expected.

This was due to higher grade ore being released, particularly in Caloma and Caloma Two, and clearer weather generally.

Gold poured for the quarter was 18,721 ounces, with sales of 16,303 ounces at an average sales price of A$1,694 per ounce generating revenue of A$27.6 million.

Bullion on hand increased by 2,414 ounces to 4,986 ounces, with a fair value at quarter end of A$8.2 million.

Site operating cash flow after development costs for the quarter was $6.5 million, but due to delayed payments from the December quarter in January, the net position was $2.0 million.

The hedge book at quarter end was 31,000 ounces gold at an average forward price of A$1,716 per ounce.


Regional exploration

An extensive regional air core drilling program commenced within the wider Tomingley Gold Project in February 2017.

16,277 metres have been completed to date testing an initial area from the southern boundary of TGO mine site to the Cemetery.

Much of the recent work has been completed in excess of 5 kilometres south of the mine.

Early results indicated that stratigraphy and mineralisation similar to that which hosts the ore deposits at TGO is present in the drilled areas.

The mineralised results are similar to those recorded in the very early drilling of the Wyoming One deposit.


The Dubbo Project (DP)

The DP remains construction ready, with the mineral deposit and surrounding land wholly owned; all State and Federal approvals in place; an established flowsheet and a solid business case.

Negotiations for off-take contracts and product pre-certification continue.

The funding strategy has not changed with strategic investment, Export Credit Agency (ECA) finance and commercial debt remaining as the key components of the envisaged project funding suite.

The project remains ready for detailed design and construction to commence, contingent on financing.

Quick facts: Alkane Resources Ltd

Price: 0.99 AUD

ASX:ALK
Market: ASX
Market Cap: $574.23 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Alkane Resources Ltd named herein, including the promotion by the Company of Alkane Resources Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Alkane Resources hits almost 700 metres of mineralisation in...

Alkane Resources Ltd (ASX:ALK) managing director Nic Earner updates Proactive on follow-up drill results from the Boda prospect within the wider Northern Molong Porphyry Project (NMPP) near Orange in New South Wales. The drilling is part of a 5,000-metre diamond core drilling exploration...

6 days, 21 hours ago

3 min read