Latest News Archives - Alkane Resources Ltd
Level 12, 37 Bligh Street +61 2 8233 6168 contact@irmau.com

Discovery of Significant Porphyry Gold-Copper Mineralisation at Boda Prospect within Northern Molong Porphyry Project (NSW)

Multi commodity miner and explorer, Alkane Resources (ASX: ALK) has made a discovery of significant porphyry gold-copper mineralisation at its Boda prospect, within the Northern Molong Porphyry Project (NMPP) in central west NSW.

The NMPP incorporates three exploration licences, covering an area of 110km2 of the northern Molong Volcanic Belt. The area is considered highly prospective for large porphyry gold-copper mineralisation, as demonstrated by the world class Cadia Valley porphyry district, located to the south of the volcanic belt.

Alkane Resources Managing Director, Nic Earner, said: “These drill results suggest a significant and exciting discovery in a region that has a history of delivering large, low-grade and long-life gold-copper mines. The project area has already delivered some strong indications of a big porphyry system near surface at Kaiser and, along with the results from this diamond drill hole at Boda, we can see clear evidence of Cadia-style mineralisation and grade over hundreds of metres. Alkane is immediately prioritizing follow up drilling, seeking to determine the scale of this highly encouraging discovery”.

Read the full announcement here.

Roswell and San Antonio Resource Definition Drilling Update

Multi commodity miner and explorer Alane Resources (ASX: ALK) has provided a drilling update for its San Antonio and Roswell prospects in central west NSW.

The 60,000 metre resource definition drilling program on the San Antonio and Roswell prospects began in mid-June.  Assay results have been received for the initial 5,000 metres.

This resource definition drilling is part of an extensive regional exploration program focused on the immediate mine area to the south of Tomingley with the aim of providing additional ore feed, either at surface or underground, in the future to Tomingley Gold Operations.

The full announcement can be found here.

Alkane makes strategic investment in Genesis Minerals

Multi-commodity miner and explorer, Alkane Resources (ALK: ASX) has executed a subscription agreement and an underwriting agreement with Genesis Minerals (ASX: GMD) “Genesis” that will see Alkane invest up to $6 million in Genesis.

The investment is consistent with Alkane’s strategic objective to grow its gold business, both organically through its Tomingley gold operations in NSW, and through investment in junior Australian gold companies with projects that meet Alkane’s investment criteria.

Following the completion of the investment, Alkane will become the largest shareholder in Genesis.

Alkane’s ASX announcement can be found here. For more information on Alkane’s investment, you can read Genesis’ ASX announcement here.

Alkane Reports Gold Mineralisation Drilling at Peak Hill

Multi-commodity miner and explorer, Alkane Resources (ASX: ALK) has confirmed a significant gold mineralisation by a large diameter core diamond drilling program at Peak Hill, located 15 km south of Tomingley Gold Mine in central west NSW. These results are consistent with the existing Peak Hill Gold Mine (PHGM) Mineral Resource.

PHGM was a fully operational open pit gold mine operated by Alkane from 1996 to 2005. PHGM is currently under care and maintenance with most site rehabilitation completed away from the existing open cuts and remains an active Mining Lease.

A 10 hole program was completed to provide mineralised samples from within the Proprietary deposit for metallurgical test work.

READ THE FULL ASX ANNOUNCEMENT 

Alkane Quarterly – Gold production meets forecast, set to continue

Gold production looks set to continue for gold miner and multi-commodity explorer, Alkane Resources (ASX:ALK), from its central west NSW mine, Tomingley Gold Operations near Dubbo.

Gold production was above forecast for the quarter and sale of 10,780 ounces gold at an average price of A$1,882/ounce gave revenue of A$20.3 million. A total of 48,969 ounces of gold were poured for the financial year with an AISC of A$947/ounce

Guidance for FY20 is production of 27,000 to 32,000 ounces of gold at an AISC of A$1,300 to A$1,450 per ounce, in line with the existing underground business case.

This week, Alkane released an Exploration Target for the combined Roswell, San Antonio and El Paso prospects this week, which lies within eight kilometres of Tomingley Gold Operations

The Dubbo Project (DP) remains construction ready, with the mineral deposit and surrounding land wholly owned, all material State and Federal approvals in place, an established flowsheet and a solid business case.

During the quarter, a binding agreement was executed with Ziron Tech of South Korea to fund a commercial scale pilot plant facility to complete final stage research, piloting and feasibility to convert metals, including key Dubbo Project metals, of high marketable purity. The agreement involves an investment by Alkane of US$1.2M in Clean Metal Processing Technology with Ziron Tech.

The Group’s cash and bullion position totalled A$80.8 million, with A$69.6M in cash, bullion on hand at fair value of A$3.4M, and A$7.8M of listed investments at market value.

READ THE FULL ASX ANNOUNCEMENT

Significant Exploration Target Defined At Tomingley

Gold miner and multi-commodity explorer, Alkane Resources (ASX: ALK), has defined a near-mine Exploration Target in the significant gold corridor identified by the company, which lies within 8 kilometres of the Tomingley Gold Operations (TGO) one million tonne per annum processing facility and underground mine.

The Exploration Target is between 15.8 and 23.8 million tonnes at a grade ranging between 1.7 to 2.2 grams per tonne gold and is across three primary prospects, Roswell, San Antonio and El Paso, which have a cumulative strike length of 2,500 metres.  The Exploration Target has been prepared on extensive drill data collected since mid-2017, including a recent exploration drill program of 76 holes for ~16,000 metres of reverse circulation drilling and 3 diamond drill holes totalling ~1,100 metres.

An Exploration Target of this size demonstrates potential for material mine life extension at TGO and also flags a possible return to open pit mining.

Alkane intends to further test the Exploration Target with drilling, which has already commenced, and this is expected to extend over approximately 12 months.  Alkane is intending to gain enough information in the next 6 months to define an initial Resource and determine whether open cut or underground mining is the preferable option to exploit this resource, if proven.

Today’s ASX announcement can be found here.

Further Significant Gold Intercepts within Tomingley Gold Corridor

Gold miner and multi-commodity explorer, Alkane Resources (ASX: ALK), has reported drill results from its Tomingley Gold Project in central west NSW, showing further significant gold intercepts within the “Tomingley Gold Corridor”.

Significant gold mineralisation has been confirmed by RC and diamond core drilling between the Roswell and San Antonio prospects, which now shows a combined strike length of 1,600 metres of gold mineralisation located within four kilometres south of the Tomingley Gold Operations (TGO) processing facility.

The objective of the extensive regional exploration program has been to define additional resources that have the potential to be mined either via open pit or underground operations and fed to TGO, an open pit mine with a 1Mtpa processing facility that is transitioning to underground through 2019.

Last week, Alkane announced gold production from processing of medium stockpiles for April-May totalled 8,886 ounces, giving 46,319 ounces financial year to date. The company increased its FY19 gold production estimate to 48,000-49,000 ounces from 42,000-47,000 ounces and as a result reduced operating cost guidance to $950 per ounce from $1,050 per ounce.

The full ASX announcement can be found here.

Alkane invests in clean, high purity processing technology

Multi commodity miner and explorer, Alkane Resources (ASX: ALK), is to invest in a new clean metal and high purity processing technology being developed in South Korea.

The technology converts metal oxides into metals through a carbon-free electrolytic process, with oxygen as a by-product, making it a cost effective and environmentally superior alternative.

It has been proven to be applicable to zirconium, hafnium, and permanent magnet rare earths metals (neodymium, praseodymium, dysprosium and terbium).

These elements together represent over 80% of forecast revenue streams from Alkane’s development ready zirconia and rare earths project at Dubbo in central west New South Wales.

Alkane is investing US$1.2 million towards a pilot plant facility to complete late stage piloting and a feasibility study for larger scale development and commercialisation of the process

In return Alkane will have a 10 per cent interest in the developing company as well as exclusive rights to use the technology at commercial scale in relation to zirconium and hafnium.

Alkane’s agreement is with a South Korean company, Zirconium Technology Corporation, with the research having been developed by scientists at Chungnam National University’s Department of Materials Science and Engineering in Daejeon.

The technology has the potential to replace the Kroll process, a highly energy intensive process that has been used broadly in industry since its development in the 1940s, with a more environmentally sustainable process which, when commercialised, is estimated to reduce metallisation costs by in excess of 50%.

Alkane considers this investment in downstream processing will improve the economics of its Dubbo project as well as giving it an involvement in the wider commercialisation of a breakthrough technology.

The pilot plant is expected to run throughout 2019 and 2020, putting Alkane in a position in 2020 to make a final investment decision about wider investment in commercialisation.

Alkane’s ASX announcement today is at this link.

To read the company’s Tomingley Gold production update and revised FY 2019 guidance released to market yesterday, please go here.

READ FULL ASX ANNOUNCEMENT

Third Near-Mine Discovery at El Paso Confirms 2.5km Tomingley Gold Corridor

Gold miner and multi-commodity explorer, Alkane Resources (ASX: ALK), today reports drill results from near its central west NSW Tomingley gold mine which it describes as “great news” and pointing to “substantial” mine life extension for Tomingley.

The results are from the El Paso prospect 7km south of Tomingley and together with results from two other nearby prospects show a cumulative strike length of 2,500 metres of gold mineralisation within 8 kilometres of the mine.

The objective of the regional exploration program has been to provide a broader source of ore feed, either at surface or underground, to extend the future of the Tomingley mine.

Drill results from El Paso intersected gold mineralisation which Alkane described as “substantial” and ranged from:

21 metres grading 2.38g/t Au from 141 metres, to
6 metres grading 10.65g/t Au from 168 metres, which included 3 metres grading 17.80g/t Au from 171 metres

For the recent March quarter Alkane reported Tomingley gold production above forecast at 10,669 ounces, with gold sales totalling 10,791 ounces generating revenue of A$19.9M at an average price of A$1,841/ounce.

At 31 March 2019 Alkane’s cash and bullion position totalled A$78.8M.

Alkane has provided FY19 production guidance of 42,000 to 47,000 ounces of gold at an AISC cost of A$950 to A$1,100 per ounce.

READ THE FULL ASX ANNOUNCEMENT 

Alkane Quarterly Gold Sales Generate A$19.9m

Multi commodity miner and explorer, Alkane Resources (ASX: ALK) has released its quarterly activities report to 31 March 2019.

Production at Tomingley Gold Operations was above forecast at 10,669 ounces, with gold sales totalling 10,791 ounces generating revenue of A$19.9M at an average price of A$1,841/ounce.

Guidance for FY19 has increased with production of 42,000 to 47,000 ounces of gold at an AISC of A$950 to A$1,100 per ounce.

The Group’s cash and bullion position totalled A$78.8M, with A$72.4M in cash and bullion on hand at fair value of A$1.8M, and A$4.6M listed investments at market value.

Alkane continues to hold approximately 10.2% of ASX listed gold developer Calidus Resources Ltd (Calidus). The Company continues to seek further investment opportunities.

Highlights and the full quarterly can be found here.