Quarterly Activities Report to 30 September 2021 - Alkane Resources Ltd
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Quarterly Activities Report to 30 September 2021

Tomingley Gold Operations (Tomingley)

  • Gold production met forecast for the quarter of 12,141oz, with site operating cash costs at A$1,531/oz and AISC of A$1,961/oz. Lower grade stopes were mined late in the quarter, with higher grade stopes forecast for early in the current quarter.
  • Gold sales of 13,359 ounces for revenue of A$33.0M at an average price of A$2,467/oz.
  • FY2022 production guidance for Tomingley is unchanged at 55,000oz to 60,000oz at an AISC of $A1,450/oz to $1,600/oz.
  • New underground fleet continues to be deployed with 3 x CAT 2900 loaders, 3 x Epiroc MT65 trucks and a Sandvik DL432i production drill received to date. A further Epiroc MT65 truck, Sandvik DD422i jumbo, CAT 2900 loader and a Normet Charmec MC605D to be delivered by the end of Q1 2022

Tomingley Gold Extension Project (TGEP)

  • The application for the Gateway Certificate, which considers the impact of proposed developments on agricultural land in NSW, was lodged with the NSW government. This is currently being evaluated and receipt is expected in the current quarter.
  • The Environmental Impact Statement is being finalised for submission on receipt of the Gateway Certificate. Submission is expected later in the current quarter. The expected timing of Project Approval remains mid-2022.

Exploration

  • The drill program at Boda continues. Results received during the quarter (see ASX Announcement 16 August 2021) showed shallow extensions of the high-grade breccia at Boda, intersecting significant gold and copper grades from surface.
  • Near mine exploration continued at Tomingley. Results received (see ASX Announcement 16 September 2021) showed additional mineralisation outside the existing resource models at Roswell and San Antonio.
  • Drilling at the McLeans Prospect, located between the Roswell Deposit and the Tomingley site, and adjacent to the underground exploration drive currently being developed, intersected significant gold mineralisation.
  • Results from Roswell raised the confidence within the Inferred Resource. The vertical continuation of the mineralised structures extended approximately 100m below the current resource estimation with significant results.

Corporate

  • Cash, bullion and listed investments position totalled A$117.3M.
  • Shareholding of ASX listed gold developer Calidus Resources Ltd (ASX:CAI) was ~9.7% at end of September quarter.
  • Shareholding of ASX listed gold developer Genesis Minerals Ltd (ASX:GMD) was ~19.7% at end of September quarter. During the quarter GMD announced a strategic funding package (see GMD ASX Announcement 22 September 2021) that will be voted on by GMD shareholders at its AGM on 19 November.
  • Completed the disposal of the Galwadgere Project to Sky Metals Ltd (ASX:SKY) for consideration of 6,000,000 shares in SKY (see SKY ASX Announcement 7 July 2021)