Quarterly Activities Report to 31 March 2021 - Alkane Resources Ltd
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Quarterly Activities Report to 31 March 2021

Tomingley Gold Operations (TGO)

  • Gold production above forecast for the quarter at 16,040 ounces, with site operating cash costs at A$803/oz and AISC of A$997/oz.
  • Gold sales of 15,844 ounces for the quarter for revenue of A$34.9M at an average price of A$2,203/oz.
  • Guidance for FY2021 increased to 50,000 to 55,000 oz at a reduced AISC of A$1,400 to A$1,550 per ounce. (Previous guidance, issued 25 February 2021, was 47,000 to 52,000 oz at an AISC of A$1,450 to A$1,600 per ounce).
  • The securing of NSW Government approvals for the development of the Roswell and San Antonio deposits is continuing. Feasibility plans that include both open cut and underground mines at Roswell and San Antonio are being finalised and expected to be announced in May.

Exploration

RWRC44910.0 metres grading 6.68g/t Au from 74 metres;
incl3.0 metres grading 17.1g/t Au from 75 metres.
RWRC45611.0 metres grading 6.73g/t Au from 187 metres;
and5.0 metres grading 2.60g/t Au from 211 metres;
and6.0 metres grading 2.34g/t Au from 251 metres.
RWRC4593.0 metres grading 2.54g/t Au from 126 metres;
and31.0 metres grading 2.76g/t Au from 134 metres;
incl2.0 metres grading 6.56g/t Au from 134 metres;
also10.0 metres grading 5.16g/t Au from 143 metres.
  • The final results for the San Antonio deposit were received and the Resource was updated (see ASX Announcement 16 February 2021). The Global Mineral Resource (Indicated and Inferred) for the San Antonio Deposit now stands at 7.3 million tonnes grading 1.72g/t gold (406,000oz).
  • The Global Mineral Resource (Indicated and Inferred) for the Tomingley Extension Project, which includes both the Roswell and San Antonio Deposits now stands at:
    • Indicated: 13.8 million tonnes grading 1.96g/t gold (871,000oz)
    • Inferred: 3.6 million tonnes grading 1.69g/t gold (195,000oz)
    • Total: 17.4 million tonnes grading 1.90g/t gold (1,066,000oz)
  • The drill program at Boda continues. Results received (see ASX Announcement 8 March 2021) continue to extend the mineralised system along strike and at depth, including into the Kaiser and Duke systems to the northwest.
  • One diamond core hole, KSDD027, at the Kaiser system located 1.5km northwest of the Boda porphyry discovery intersected two zones of gold-copper porphyry mineralisation with grades and alteration similar to Boda and significant assay results of:
KSDD027360m grading 0.38g/t Au, 0.15% Cu from 0m (Duke Zone)
incl7m grading 0.90g/t Au, 0.26% Cu from 119m
also6m grading 0.90g/t Au, 0.29% Cu from 204m
also6m grading 1.71g/t Au, 0.24% Cu from 332m
and442m grading 0.17g/t Au, 0.11% Cu from 422m
incl27m grading 0.31g/t Au , 0.13% Cu from 492m
also58m grading 0.28g/t Au, 0.16% Cu from 735m
  • Results from several drill holes are being finalised and will be released in the coming weeks.

Corporate

  • Cash, bullion and listed investments position totalled A$72.4M.
  • Shareholding of ASX listed gold developer Calidus Resources Ltd (ASX:CAI) reduced to ~9.8% at end of March quarter as a result of dilution from a share issue by Calidus as consideration for purchase of the Blue Spec mine.
  • Shareholding of ASX listed gold developer Genesis Minerals Ltd (ASX:GMD) was ~19.9% at end of March quarter.