LA Private

Alkane Resources’ Tomingley gold mine shows strong growth and exploration success

Alkane Resources’s (ASX:ALK) Tomingley gold mine is looking stronger by the day or so it seems in July.

Not only did it meet guidance for record gold production for the 2023 financial year of more than 70,000 ounces but its exploration efforts continue to find more areas of interest that will give the mine longer lifespan.

Alkane (which also has three highly prospective gold/copper prospects in the same area of central western NSW where Tomingley is located) told the ASX this week that it had found four new areas of gold mineralisation at and near the mine site.

“Significant gold mineralisation was identified at several prospects located within seven kilometres of the Tomingley Gold Operations processing facility, including targets within the approved Tomingley project area,” Alkane told the market.

“Drilling at McLeans has defined mineralisation over 200 metres strike and 500 metres down dip that remains open. A maiden underground Inferred Mineral Resource estimation for McLeans is expected this calendar year.

“Drilling at El Paso, located 1km south of the San Antonio deposit, focused on a mineralised Roswell-type andesite of approximate dimensions of 250 metres in length and 50 metres in width,” The company said.

“Plains Prospect is located 1km southeast of the Roswell Deposit and within the approved Tomingley project area, is a 500 metres by 200 metres zone of gold mineralisation beneath a shallow cover of 15 metres.

“Allendale Prospect is a gold-copper porphyry target within the buried Narromine Igneous Complex west of the Parkes Thrust located approximately 5km northwest of Tomingley. Historical drilling comprised limited air-core drilling with three diamond core tails.
“We continue to explore at Tomingley both within our approved mining areas and regionally,” Alkane managing director Nic Earner said in the statement.

“With current plans already extending to 2032 we are seeking to add further mine life, scale, and grade to Tomingley.

“It is pleasing to see the various exploration targets around Tomingley yielding results and we look forward to adding the McLeans deposit to our resource base before the end of the calendar year.”

The discoveries come just months after Alkane confirmed record gold production for the June 30 financial year.

The mine produced 70,253 ounces of gold for the 12 months, easily meeting guidance of 65,000 to 73,000 (which was upgraded in April as gold production improved).

Alkane said the Tomingley mine’s preliminary all in sustaining costs (AISC) are expected to be in the mid-range of guidance ($1,550/oz to $1,750/oz) for the same period.

“The strong 12-month performance at Tomingley was part of an excellent year that also saw the Tomingley Gold Extension Project receive government approval and the underground exploration drive reach the Roswell deposit,” directors told the ASX in an early update of the 4th quarter and full year quarterly report.

Alkane said it had unaudited cash, bullion and listed investments position at June 30 of A$107.2 million, comprising $80.3 million cash, $8.3 million of bullion in hand and $18.6 million of listed investments.