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.