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  • Alkane Resources has today released its quarterly report with a focus on its Tomingley Gold Project
  • Underground operations continue on time and on budget with gold sales generating revenue of $15 million
  • Its Dubbo Project remains construction ready with all State and Federal approvals in place
  • Despite the good news, shares in Alkane are down 4.85 per cent today, trading for 78.5 cents apiece

Alkane Resources has today released its quarterly report with a focus on its Tomingley Gold Operations.

It was outlined that the development of underground operations at Tomingley are continuing both on time and on budget.

Low grade stockpiles were processed during the quarter, which is ahead of the commencement of the underground stope production.

Gold production was above what was estimated at 7497 ounces poured for the quarter.

The FY20 guidance has been increased to the production of 30,000 to 35,000 ounces of gold at an AISC (all-in sustaining costs) of $1250 to $1400 per ounce.

This is largely due to the continued over-reconciliation of the low grade stockpile material which will be processed until mid-December.

At this time the processing plant will enter a scheduled shutdown until mid-February and restart processing of underground ore as planned.

The sale of gold for the quarter was 6997 ounces with an average sales price of $2151 per ounce which generated revenue of $15 million.

The encouraging results that have been seen from exploration and resource drilling to the immediate south of Tomingley have led Alkane to take the necessary steps forward that could enable future mine development in the area.

Alkane has already begun consulting with some key stakeholders, landholders and regulators.

It must first seek approval to develop an exploration drive and if successful, approval will be sealed for both underground and open cut mining development.

The quarter also focused on increasing the drilling density and testing strike extensions within the Roswell and San Antonio prospects.

Significant results include 2 metres at 23.2g/t gold from 219 metres, 3 metres at 21.8g/t gold from 194 metres, and 3 metres at 16.6g/t gold from 57 metres.

These results will be incorporated into the first resource model which is expected to be released in late November.

Alkane will continue resource definition drilling and is expected to complete a further 50,000 metres of reverse circulation drilling over the remainder the for 2020 financial year.

The Dubbo Project remains construction ready with the mineral deposit and surrounding land wholly owned, all State and Federal approvals in place, and an established flowsheet in place also.

Shares in Alkane Resources are down 4.85 per cent today, trading for 78.5 cents apiece at 2:17 pm AEDT.

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