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Alkane Resources confirms large-scale Boda potential with reorientated drilling returning broad high-grade gold and copper zones

Last updated: 14:30 18 Dec 2020 AEDT, First published: 11:47 18 Dec 2020 AEDT

Alkane Resources Ltd -
Further assay results are expected in February 2021.

Alkane Resources Ltd (ASX:ALK) has confirmed the large-scale potential of Boda discovery within the Northern Molong Porphyry Project in central New South Wales after reorientated drilling returned broad zones of high-grade gold and copper.

Drill-hole KSDD028 intersected gold-copper porphyry mineralisation with high grades centred on a sulphide cemented breccia.

It returned 832 metres grading 0.38 g/t gold and 0.17% copper from 256 metres, including 266 metres at 0.66 g/t gold and 0.36% copper from 764 metres, 65 metres at 1.98 g/t gold and 1.13% copper from 799 metres and 25 metres at 4.43 g/t gold and 2.59 copper form 838 metres.

Tier-one potential

Boda is a landmark porphyry gold-copper system which the company believes has the potential to be a large, tier-one gold-copper project.

Other diamond holes are also producing broad, high-grade results, including 366.8 metres at 0.27 g/t gold and 0.11% copper from 0 metres with the same hole, KSRC033D, also returning 52-metre, 6-metre, 38-metre and 149.2-metre mineralised intersections.

The company's market cap sits at approximately $583.5 million and shares have been as much as 3.6% higher to $1.015 intra-day.

Further clarity on scale and orientation

Managing director Nic Earner said: “Hole 28 provides further clarity on the potential scale and orientation of a very high-grade brecciated zone.

“Follow-up drilling, consistent with the new orientation, is being expedited to test the extent of the continuity and down plunge of this high-grade zone.

“We have growing confidence in our geological interpretation of the Boda-Kaiser system and its potential.

“In addition to further targeting of the high-grade zone at the northern end of Boda, we expect follow-up results stepping out from the encouraging Hole 22 result announced last month at the southern end of the currently identified mineralised system to be available early in the New Year.”

Drilling results from two diamond core holes

Hole KSDD028 indicates a high-grade sulphide cemented breccia striking northwest with approximate true width 50 metres and plunging to the northeast.

This sulphide breccia remains open along strike and down dip and it appears the zone is becoming more gold-copper mineralised down plunge, possibly vectoring towards a ‘causative’ intrusion to the Boda system.

Assays were also received for two diamond core holes from the current program at Boda, where drilling continues to intersect extensive zones of gold-copper mineralisation.

Apart from the 366.8-metre intersection, KSRC033D returned:

  • 52 metres at 0.20 g/t gold, 0.10% copper from 414 metres;
  • 6 metres at 0.47 g/t gold, 0.26% copper from 598 metres; and
  • 38 metres at 0.20 g/t gold, 0.11% copper from 636 metres.

Looking ahead

Drilling continues at Boda, adding further definition within and extensions to the identified mineralised system.

Testing of targets within the northwest trending Kaiser-Boda corridor is continuing, together with step out drilling from the very encouraging KSDD022.

Further assay results are expected in February 2021.

Alkane also operates the nearby Tomingley Gold Operations (TGO) and is working towards its stated ambition of becoming Australia’s next multi-mine gold producer.

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