Alkane accelerates process for future mine development - Alkane Resources Ltd
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Alkane accelerates process for future mine development

Multi-commodity miner and explorer, Alkane Resources (ASX: ALK), today reports September quarter gold production at Tomingley Gold Mine above forecast at 7,497 ounces, with sales of 6,997 ounces for revenue of A$15.0 million at an average price of A$2,151 per ounce.

Guidance for FY20 has been increased to 30,000 to 35,000 ounces of gold at an AISC of A$1,250 to A$1,400 per ounce, largely due to the continued over-reconciliation of the low grade stockpile material.

Results from exploration drilling during the quarter at the Northern Molong Porphyry Project (Boda drilling) were considered encouraging and resource drilling continued the Roswell and San Antonio prospect.

On the back of the strong results from exploration and resource drilling to the immediate south of Tomingley, Alkane is expediting the process to move to future mine development in that area.

Alkane will continue with resource definition drilling and planning is currently underway for an exploration program to test targets between El Paso and the Peak Hill Gold Mine within the financial year.

The Dubbo project remains construction ready, with a commercial scale pilot plant being constructed as part of the investment in Clean Metal Processing Technology with Ziron Tech of South Korea which is due to be commissioned in the March quarter.

A demerger and listing of Australian Strategic Materials (100% owner of the Dubbo Project) is under active consideration by the Alkane Board. Consultation with regulators is underway.

The group’s cash and bullion position totalled A$73.9 million, with A$53.5 million in cash, bullion on hand at fair value of A$4.9 million, and A$15.5 million of listed investments at market value.

During the quarter Alkane took up shares in a placement with Genesis Minerals (ASX:GMD), involving an investment of approximately A$6 million to give Alkane a holding of 15 per cent of Genesis issued shares.

The full quarterly can be found here.