Tomingley Gold Operations (TGO)
- Gold production above forecast for the quarter at 13,500oz, with site operating cash costs at A$1,199/oz and AISC of A$1,669/oz.
- Gold sales of 11,526 ounces for the quarter for revenue of A$27.7M at an average price of A$2,401/oz.
- FY2021 gold production was 56,958oz (guidance 50,000oz to 55,000oz) at an AISC of $1,320/oz (guidance $1,400/oz to $1,550/oz).
- FY2022 production guidance for Tomingley is 55,000oz to 60,000oz at an AISC of $A1,450/oz to $1,600/oz.
Tomingley Gold Extension Project (TGEP)
- Roswell and San Antonio resources to be mined as part of an expanded Tomingley Gold Operations that extends the mine’s life to at least 2031 (see ASX Announcement 3 June 2021).
- The life of mine (LOM) plan shows the production of approximately 745,000oz for the period, with processing ramping to a 1.5 million tonne per annum feed rate.
- The planned production profile (averaged for each period) is:
- 50,000 – 60,000oz per year for FY22 & FY23;
- Production escalating from 60,000oz per year through FY24; to
- 100,000 – 115,000oz for FY25 to FY27; and,
- 55,000 – 65,000oz for FY28 to FY31.
- Substantial upside potential to extend the Roswell underground and maintain production over the FY28 to FY31 period at or near FY25 to FY27 levels, and beyond.
- The expected AISC over the LOM period is A$1,350 to A$1,450 per oz.
- Development of the Roswell and San Antonio deposits requires the diversion of the Newell Highway onto land which Alkane has purchased. This diversion, together with plant upgrades and other capital gives rise to a capital cost of ~$87M, predominantly expended in FY23.
- The capital cost is expected to be funded from operating cashflow and debt, and preliminary discussions are commencing with potential debt providers.
- With detailed plans and initial consultation now complete, the Environmental Impact Statement is being prepared for submission in the coming quarter. The expected timing of Project Approval is mid-2022.
- The drill program at Boda continues. Results received (see ASX Announcement 3 May 2021) demonstrate further continuity of the high-grade breccia at Boda as well as showing extensions to the mineralised system to the south at Boda Two.
- One diamond core hole, KSDD031, successfully intersected the sulphide cemented breccia down dip with significant assay results of:
|KSDD031||383.2m grading 0.80g/t Au, 0.31% Cu from 775m|
|incl||204m grading 1.40g/t Au, 0.51% Cu from 776m|
|incl||101m grading 2.47g/t Au, 0.83% Cu from 824m|
|incl||70m grading 3.04g/t Au, 0.92% Cu from 829m|
- Results from several drill holes are being finalised and are expected be released in the coming weeks. The laboratory has experienced abnormal delays due to border and regional movement restrictions of people and samples.
- A reconnaissance drilling program of 75 air-core drill holes totalling 1,354m was completed along nominal 400 m spaced drill traverses across an untested 2km in strike length magnetic anomaly at the Murga Prospect (Finns Crossing), approximately 12km north-west of Boda.
- Assay results for porphyry pathfinder elements such as antinomy, arsenic, molybdenum and zinc were anomalous, and in addition to intersecting low grades of gold and copper confirms the prospectivity of the target with further exploration planned.
- Cash, bullion and listed investments position totalled A$73.9M.
- Shareholding of ASX listed gold developer Calidus Resources Ltd (ASX:CAI) was ~9.7% at end of June quarter.
- After gaining majority shareholder approval for a placement to maintain its percentage holding of ASX listed gold developer Genesis Minerals Ltd (ASX:GMD), Alkane invested $2.2M during the quarter and continues to hold ~19.8% of GMD at end of June quarter.