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Alkane Resources lifts gold bounty in Tomingley Corridor to plus-1 million ounces

The company has declared an initial inferred resource of 453,000 ounces for the San Antonio deposit.

Alkane Resources Ltd - Alkane Resources lifts gold bounty in Tomingley Corridor to plus-1 million ounces
Exploration is ongoing in an area to the south of the existing gold operation

Alkane Resources Limited (ASX:ALK) (OTCMKTS:ALKEF) has exceeded the magical 1-million-ounce mark in the Tomingley Corridor of Central West NSW due to an initial inferred gold resource from the San Antonio deposit.

Drilling completed at San Antonio has been modelled and demonstrates an inferred resource of 7.92 million tonnes grading 1.78 g/t gold for 453,000 ounces at a cut-off of 0.5 g/t.

Conceptual mine plans

The resources at Tomingley Gold Operations (TGO) and the exploration tenements to the immediate south of the mine, including San Antonio, are now being prepared into conceptual mine plans.

Alkane will be able to use these plans to progress mining approvals that would allow ore from the Roswell and San Antonio deposits to be fed into the TGO one million tonnes per annum processing facility.

The company is well on the way to demonstrate a continued mine life at TGO in excess of 10 years.

The Tomingley Gold Project is alongside the Newell Highway from Tomingley to Peak Hill.

Four contributing deposits

Contributing to the 1.171-million-ounce total are the Tomingley Underground deposit at TGO with 1.36 million tonnes at 3.8 g/t for 165,000 ounces.

Apart from San Antonio, which is 4 kilometres from Alkane’s gold operations, other deposits to the immediate south of TGO also have resources:

  • Roswell deposit: 7.02 million tonnes at 1.97 g/t for 445,000 ounces; and
  • Peak Hill Underground: 1.02 million tonnes at 3.29 g/t for 108,000 ounces.

Scope exists to expand the San Antonio resources at depth with the drilling only defining resources to 250 metres from surface due to drilling difficulties.

A 3D model of the San Antonio mineralisation.

Ongoing drilling

Further drilling is underway at San Antonio and Roswell to reduce the drill hole spacing with the intention of converting inferred resources to indicated and measured status.

Alkane is also continuing exploration drilling in the prospective gold corridor to the south of San Antonio.

The company has sought approval from the NSW State Government for an underground exploration drive to the Roswell deposit, with equipment purchased, personnel recruited and land acquired in order to facilitate rapid development on approval.

Tomingley Gold Project 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 Tomingley Gold Operations (TGO), an open pit mine with a 1 million tonnes per annum processing facility that is transitioning to underground.

Quick facts: Alkane Resources Ltd

Price: 1.3675 AUD

ASX:ALK
Market: ASX
Market Cap: $812.71 m
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