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Alkane Resources continues upward march with more high-grade gold results

The company has received further strong results from regional drilling south of the Tomingley Gold Operations.

Alkane Resources Ltd - Alkane Resources continues upward march with more high-grade gold results
Shares are up almost 9% today to a new 12-month high of 85 cents

Alkane Resources Limited (ASX:ALK) continues to surge supported by a solid gold market and strong results from regional exploration at the Tomingley Gold Project (TGP) in Central West NSW.

Share have this morning continued to march upwards and in early trade have been almost 9% higher to a new 12-month high of 85 cents, up from 38 cents on September 4.

The company has received further high-grade results from an ongoing 60,000-metre resource definition drilling program on San Antonio and Roswell prospects, 3-4 kilometres south of the Tomingley Gold Operations (TGO).

Broad high-grade results

Assays from the second 5,000 metres of this program have returned up to 9 metres at 2.33 g/t from 24 metres and 44 metres at 2.76 g/t from 45 metres, including 3 metres at 16.6 g/t from 57 metres at San Antonio.

Other San Antonio highlights include:

  • 42 metres at 2.61 g/t from 42 metres, including 12 metres at 6.70 g/t from 48 metres;
  • 24 metres at 6.30 g/t from 147 metres, including 12 metres at 9.92 g/t from 147 metres; and
  • 4 metres at 14.6 g/t from 252 metres, including 2 metres at 26.1 g/t from 254 metres.

Results from Roswell include:

  • 45 metres at 3.66 g/t from 195 metres, including 9 metres at 9.64 g/t from 220 metres; and
  • 24 metres at 5.33 g/t from 186 metres, including 3 metres at 16.0 g/t from 188 metres, and 3 metres at 21.8 g/t from 194 metres.

Regional program

This resource definition drilling comprising 10,000 metres of diamond drilling and 50,000 metres of RC drilling, is part of an extensive regional exploration program focused on the immediate area south of Tomingley.

It is seeking to define an initial inferred resource at Roswell and San Antonio with a nominal 40-metre by 40-metre drill hole spacing to a 200-metre vertical depth.

The aim is to provide additional ore feed, either at surface or underground, to TGO.

Potential for extended project life

This program has yielded broad, shallow high-grade intercepts that demonstrate the potential for material project life extension and show that a return to open pit mining and/or underground extension is possible with appropriate resource confirmation, landholder agreement and regulatory approvals.

TGP covers an area of about 440 square kilometres stretching 60 kilometres north-south along the Newell Highway from Tomingley in the north, through Peak Hill and almost to Parkes in the south.

The project contains Alkane’s operating TGO, an open pit mine with a 1 million tonnes per annum processing facility that is transitioning to underground through 2019.

Quick facts: Alkane Resources Ltd

Price: 0.805 AUD

ASX:ALK
Market: ASX
Market Cap: $407.41 m
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