Alkane Resources Ltd (ASX:ALK) has received high-grade gold results from infill drilling at Roswell deposit within the wider Tomingley Gold Project in Central West NSW, which will form part of a resource update expected next month.
The infill drilling comprised 92 holes for a total of 29,000 metres and Alkane has received final assay results from 21 drill holes for a total of 6,250 metres.
Notable intersections include:
- 34.3 metres at 3.76 g/t gold from 387 metres, including 6 metres at 9.63 g/t from 403 metres;
- 21 metres at 3.46 g/t from 349 metres, including 6 metres at 2.22 g/t from 382 metres and 20.7 metres at 10.3 g/t from 414 metres; and
- 73 metres at 1.49 g/t from 286 metres, including 31.4 metres at 2.88 g/t from 382 metres.
Alkane has a market cap of approximately $857.4 million and shares have been as much as 5.7% higher to $1.315 intra-day.
The company has conducted an extensive regional program over the past two years at the Tomingley project, which led to the definition of resources at Roswell and San Antonio deposits south of the current operations.
- Roswell – 7.02 million tonnes at 1.97 g/t gold for 445,000 ounces; and
- San Antonio – 7.92 million tonnes at 1.78 g/t gold for 453,000 ounces.
These intersections are around 100 metres below the base of the previously defined inferred resource and confirm potential of the system to extend to depth.
The infill drilling is completed at Roswell and an updated resource estimation is anticipated to be released in early November 2020.
Infill drilling continues at San Antonio with an updated resource estimate for San Antonio anticipated later in the current quarter along with preliminary mine plans for the two deposits.
Detailed mine plans
Alkane has continued consultation with its key stakeholders, including landholders and regulators and has approval to develop an exploration drive from the Wyoming One deposit to Roswell.
The company has also prepared preliminary plans for both open-cut and underground mines beneath Roswell and San Antonio that it is using for consultation purposes as it seeks approval for mining development both underground and open cut.
Detailed mine plans for Roswell and San Antonio, to enable an economic assessment, will be prepared once the indicated resources have been compiled and released.
The Tomingley Gold Project covers approximately 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.
This project contains Alkane’s operating Tomingley Gold Operations (TGO), an open pit mine and underground operation with a 1 million tonnes per annum processing facility.