Sign up Australia
Proactive Investors - Run By Investors For Investors

Alkane Resources drill results may extend open pit to underground

Any extension to Tomingley's mine life will add significant value to the gold operations.
resource model and cross section of Wyoming One deposit
The company finished the September quarter with $53.3 million in cash and gold

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

View full ALK profile View Profile

Alkane Resources Ltd Timeline

Related Articles

June 16 2018
The company aims to begin drilling in summer 2018.
September 12 2018
Bluejay is now sending off product samples to potential customers

No investment advice

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

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

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

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

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

© Proactive Investors 2018

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

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