Peak Hill Community Information - Alkane Resources Ltd
Level 12, 37 Bligh Street +61 2 8233 6168 contact@irmau.com

Current Project Status

In November-December 2018 Alkane will drill 10 diamond drill holes from the western edge of the Proprietary open cut angled below historic underground workings. This drilling will provide confirmation of the geology and structures and fresh material for advanced metallurgical testing.

This re-evaluation of the potential for Peak Hill to be developed underground forms part of the extensive regional exploration program which is in progress to provide additional ore feed for Tomingley Gold Operations.

Contact / Complaints Line

Community Information Line Number: 0427 691733

Email: msutherland@alkane.com.au

To make a complaint please call the Community Information Line Number which operates 24 hours a day, 7 days a week.

If you are calling for business purposes please call between 9 am – 5 pm Monday to Friday on 02 6882 2866.

Complaints Register (no complaints were received in the 2017 calendar year)

Peak Hill Gold Mine Q & A

Q. Who/What is Alkane Resources?

Alkane Resources (Alkane) is a junior public resource company, listed on the ASX since 1969 and owned by around 6,500 shareholders, including many local mums and dads who take an interest in regional developments.

Alkane owned and operated the Peak Hill Gold Mine from 1996-2005 and retains its mining leases, which are administered by Department of Planning and Environment. The company continues to care for and maintain the mine site as an exploration base. Alkane also has other commercial and residential properties in Peak Hill.

In addition, Alkane owns Tomingley Gold Operations, the Dubbo Project – including 3,500Ha of agricultural land – and has exploration tenements stretching from Crookwell to Bodangora and west to Trangie.

Q. Why is Alkane exploring for more gold at Peak Hill?

The town of Peak Hill developed when gold was discovered in 1889 and mined until 1917. There was a hiatus in mining until 1996, when Alkane reopened the Peak Hill Gold Mine and operated it as five open cuts until 2005.

Due to technological advances since 2005, underground mining at Peak Hill may now be economically viable again, depending on the quality and structure of the remaining ore resource. If it is feasible to extract more ore by extending the mine underground, this will allow Alkane to continue operation of the processing plant at Tomingley Gold Operations.

Q. Will Alkane undertake more mining at Peak Hill?

Alkane does not yet know whether it is feasible to reopen the Peak Hill Gold Mine as an underground operation – it depends on the quality and structure of the remaining ore resource.

To begin assessing the Peak Hill ore resource, Alkane will extract samples with a diamond drill rig at the western edge of the open cut mine, within the existing granted Mining Leases. Ten holes will be drilled to a depth of 400m below the historic mine. The extracted cores will be subjected to geological analysis and metallurgical testing.

If the preliminary feasibility study produces positive results, then additional exploration drilling and a comprehensive environmental assessment would be required before a decision about future mining could be made. NSW Planning and Environment would oversee the environmental assessment, which would include extensive community consultation.

Q. How will Alkane protect local residents and the environment during exploration drilling?

Alkane will work to minimise the impact on Peak Hill residents living near the exploration drilling site – at the northern end of Euchie Street. This includes constructing a 4.5m high ‘noise curtain’ from hay bales. This U-shaped sound-absorbing barrier will partially enclose the drill rig and support vehicles. Vehicles will access the site via Mingelo Street.

On-site consultation with Parkes Shire Council staff has confirmed that the Peak Hill Open Cut Experience can remain open for visitors, throughout the drilling.

Alkane will comply with all environment protection regulations, including ecological rehabilitation of the site when sampling is completed. The hay bales will be recycled as cattle fodder by Alkane’s Toongi Pastoral Company.

Q. What impact will Alkane’s exploration drilling have on groundwater at Peak Hill?

Alkane’s exploration drilling will not cause acidic groundwater from the mine pit to leak into the soil under Peak Hill properties.

The historic, alluvial gold workings under Peak Hill are only a few metres deep, following natural underground watercourses draining off the hill. The groundwater table (aquifer level) in the Peak Hill mine pit is about 60m below the surface on the western edge. There is no connection between the shallow alluvial workings and the pit aquifer at Peak Hill. Alkane’s exploration drilling will not change this situation.

Groundwater associated with gold-bearing rock often naturally contains dissolved iron sulphide (a.k.a.pyrite or fool’s gold). Exposed to air, sulphides oxidise, becoming acidic. Acidic water dissolves metals in the surrounding rock – particularly copper and iron, at Peak Hill. The pit water at Peak Hill Gold Mine is indigo black because of dissolved copper and iron.

Q. Have Peak Hill properties been damaged by Alkane’s operations in the past?

No.

Alkane’s open cut gold mining at Peak Hill (1996-2005) was a drill and blast operation. Operating amongst historic gold diggings and rock types of varying resistance made it extremely difficult to predict blast results with precision. On numerous occasions, the air pressure shockwave or ‘overpressure’ caused by blasting exceeded the government’s very conservative regulatory limits.

This caused understandable community concern. However, the levels of overpressure remained well below levels that could cause damage to properties.

Q.What impact has Alkane had on the environment of Peak Hill?

Over the past 22 years, Alkane has had a positive impact on Peak Hill’s environment, including:

  • In 1998 removing 82,776 tonnes of historic mine tailings from three locations east of Euchie Street, Bivana Street and Warrah Street. The tailings were infested with rabbits and African boxthorn and contained elevated levels of arsenic. All three sites were rehabilitated with clean topsoil.
  • planting trees and promoting documented increase in biodiversity (bird, mammal and plant species)
  • removing two semi-trailer loads of compacted car bodies from the mine site before commencing operations
  • cleaning up the mine site and making the workings safe by fencing them, and
  • gifting 4Ha of land and infrastructure to Parkes Council for a waste transfer facility to replace the previous land-fill tip.

    Q.What impact has Alkane had on the Peak Hill economy and community life?

Alkane has supported the wellbeing of the Peak Hill community since the mid-1990s. Alkane’s most significant contribution has been in generating jobs and increasing economic activity in Peak Hill. Employment and skills provided by the Peak Hill Gold Mine have transformed lives and supported many families. Peak Hill has also enjoyed ongoing economic benefits from Alkane’s establishment of the tourist mine – one of the most popular attractions in Parkes Shire.

While the mine was operating, Alkane contributed money to Parkes Shire for infrastructure upgrades, street beautification and tourism studies. Some of Alkane’s other community works include:

  • upgrading the mains for Peak Hill’s water supply, replacing old lead-lined cast-iron pipes with polypipe;
  • upgrading the tennis courts;
  • restoring and donating the Southern Cross Hall to the community;
  • sponsoring numerous school initiatives and sporting events, the Peak Hill Show, The Gold Rush Carnival, The Open Cut Gallery and the Community Radio Station;
  • volunteer contributions to SES and local fire fighting efforts. The PHGM water cart was used to prevent the Carrington Hotel fire from spreading across the town.;
  • Financial contributions to Peak Hill doctor’s residence and school infrastructure; and
  • providing vendor finance to purchase Alkane owned properties which assisted local individuals and families into home ownership.

Peak Hill Community Newsletter