banner-media

April 20, 2016

Tomingley Gold Operations (TGO) 

  • Production summary for the quarter:
    • Gold production 14,612 ounces (15,721 ounces recovered).
    • Site operating cash costs were A$1,249/ounce and total operating costs (AISC) of A$1,358/ounce.
    • The slightly higher than average costs due to extensive waste removal for the Wyoming One pit development.
    • Gold sales 15,000 ounces for revenue of A$24.3 million at an average price of A$1,621/ounce.
    • Gold hedge at 31 March 2016 of 27,000 ounces at average forward price of A$1,615/ounce.
  • Site net cash inflow for the quarter after site operating expenses and development expenditure was $6.0M. 
  • Production for FY16 to date is 49,748 ounces, within guidance, and site net cash inflow totals $18.6M.

Dubbo Zirconia Project (DZP or the Project)

  • The Environment Protection Licence was granted by the NSW Environment Protection Authority on 14 March 2016.
  • Australian Zirconia Limited (AZL), a wholly owned subsidiary of Alkane Resources Ltd, signed a Letter of Intent (LOI) with Vietnam Rare Earth JSC (VTRE) to toll process AZL’s rare earths concentrate produced by the DZP into individual rare earth products.
  • VTRE is a specialist Vietnamese chemical and advanced materials company which operates a processing plant to produce separated rare earth oxides from rare earth concentrates and recycled magnet materials. VTRE also produces rare earth alloys for neodymium iron boron (NdFeB) permanent magnets.
  • The partnership will allow AZL to provide a supply (alternate to that from China) of separated rare earth products, guaranteeing certification and supply chain traceability from ore mined and processed in Australia through to customers’ products. It will also allow AZL to participate in downstream markets and capture further value adding for its rare earth products.
  • Financing and off-take negotiations continued.

Corporate

  • The Group’s cash position totalled A$21.0M with A$16.7M cash in addition to bullion on hand valued at A$4.3M, an increase of A$1.9M from the previous quarter.

Read More...