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Alkane Resources drills 110 metres at 1.97 g/t gold at Peak Hill

The Peak Hill Gold Mine (PHGM) is on care and maintenance and located 15 kilometres sound of the Tomingley Gold Operations (TGO).

Tomingley project photo from the air over open cut mine
PHGM was operated by Alkane from 1996 to 2005 as an open cut, heap leach operation

Alkane Resources Ltd (ASX:ALK) has received the results from a 10-hole diamond drilling program at the Peak Hill Gold Mine (PHGM) within the greater Tomingley Project, NSW.

The drilling program was completed to provide mineralised samples for metallurgical testing from within the Proprietary deposit at the PHGM for metallurgical test work.

Highlights included 110 metres grading 1.97 g/t gold from 197 metres and 102 metres grading 1.78 g/t gold from 18 2metres with high grade sections such as 30 metres at 4.30 g/t gold.

Notably, the PHGM is on an active mining lease and 15 kilometres from the operating processing facility which means an opportunity exists to establish an economic mining operation.

READ: Shares in Alkane Resources continue to benefit from twin exposure to gold production and rare earths

The former gold mine operation at PHGM comprised four pits, the main Proprietary-Parkers Pit and three satellite pits, Bobby Burns, Crown and Great Eastern.

In October 2018, an updated resource for the Proprietary deposit, which is 250 metres long, 30 metres wide and open below 350 metres depth was released measuring 108,000 ounces gold grading 3.29 g/t gold.

Metallurgy work is key to unlocking PGMH value

The results from this drill program are largely in line with previous drilling but the style of deposit, which is sulphide refractory ore, means metallurgy is the key to development.

Initial metallurgical work was undertaken in 1997-1999 and indicated that the sulphide ore was moderately refractory but recovery of gold was possible.

Depending upon successful metallurgical work, a conceptual mining plan will be investigated for internal economic evaluation.

Metallurgical test work is designed to test modern gold recovery techniques.

Quick facts: Alkane Resources Ltd

Price: 1.5 AUD

Market: ASX
Market Cap: $893.08 m

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