Our strategic priorities for improving company value in 2018 are:
1) Multi-faceted gold investment strategy
To increase value for shareholders and strengthen the company for the long-term is using its strong cash resources to fund:
- Underground mining at Tomingley Gold Operations (TGO). Approved by the Board, underground development will commence in early 2019, with the first production of ore expected mid-year. The ore will be stockpiled for processing at the TGO plant in the final quarter of 2019. Learn more
- Continued exploration of prospects in the Tomingley region with confirmed high-grade gold mineralisation. This may define additional ore resources that can be mined from the surface or underground and processed at TGO. Learn more
- Investigation of the feasibility of extending the Peak Hill Gold Mine, located 15km south of TGO, which Alkane Resources operated as an open pit from 1996 to 2005. Re-evaluation of the Peak Hill deposit suggests that underground mining may be able to access defined ore resources (108,000 ounces) for the TGO processing plant. Learn more
- Investment in junior gold mining companies and projects with high potential to which Alkane can bring additional capital, expertise and operating capability, for mutual benefit. In the first instance, in October 2018, Alkane Resources invested in gold exploration company Calidus Resources Limited (ASX:CAI) due to its excellent prospects in Western Australia and its highly feasible development path. Learn more
2) Securing financing for the Dubbo Project
The Dubbo Project, which is expected to position Alkane as a significant world producer of critical technology metals, is presently almost construction-ready as we finalise the off-take, design and financing arrangements. Our preferred approach is to produce high-value downstream high-grade products. Prices of these materials have already begun to climb as demand increases and the period of oversupply appears to have ended. Alkane is actively seeking a mixture of financing from export credit agencies, strategic partners and equity and debt markets.
3) Maximising value from the Tomingley Gold Operations
Commissioned in January 2014, the TGO processing plant has been operating at the design capacity of 1Mtpa since late May 2014. Development of underground operations in early 2019 represents the next phase of the mine’s life cycle, with the completion of open cut mining at Tomingley. Alkane also has a wider regional development strategy for the Tomingley and Peak Hill area with an extensive exploration program aimed at defining additional gold resources for the TGO processing plant.
4) Rationalising the exploration portfolio to concentrate on high value large-scale deposits
Our exploration efforts have targeted the discovery of significant gold deposits in the style of the Ridgeway-Cadia porphyry gold copper or McPhillamys gold deposits. A drilling program was carried out in four target areas of our Northern Molong Porphyry Project, confirming the potential of this 15km long corridor to host significant deposits.