Our strategic priorities for improving company value in 2019 are:
In a strong market for Australian gold, Alkane has a focus on gold production, exploration and partnerships. This emphasis on gold is driven by our commitment to create value shareholders and the need to wait for market conditions that will support progress of the Dubbo Project. Our gold strategy is soundly based on our existing gold assets, established projects, promising prospects, and demonstrated experience in gold exploration and production.
1) Gold investment strategy
Our multi-faceted gold investment strategy will increase value for shareholders and strengthen Alkane for the long term. We are using our strong cash resources to fund:
- Underground mining at Tomingley Gold Operations (TGO). Underground development has commenced, with the first production of ore expected later in 2019.
- Regional gold exploration. We are exploring prospects with confirmed high-grade mineralisation in the Tomingley region. The goal is to define additional ore resources, either at surface or underground, for processing at TGO.
- Re-evaluation of the Peak Hill deposit. Alkane operated the Peak Hill Gold Mine, located 15km south of TGO, as an open pit from 1996 to 2005. Re-evaluation of the Peak Hill deposit suggests that underground mining may be feasible for accessing defined ore resources as another source of ore for the TGO processing plant.
- Strategic investment. We are seeking investments in junior gold mining companies and high-potential projects, where Alkane can contribute additional capital, expertise and operating capability, for mutual benefit. In the first instance, in October 2018, Alkane invested in gold exploration company Calidus Resources Limited (ASX:CAI), due to its excellent prospects in Western Australia and its highly feasible development path.
2) Dubbo Project
The world-class Dubbo Project remains construction-ready and stands to become a strategic and significant producer of zirconium, hafnium, niobium and rare earths for advanced technologies. Alkane subsidiary Australian Strategic Materials (ASM), which owns the project, is monitoring market demand for these critical materials and will seek further investment for the project when the market conditions are right.