Central West New South Wales gold producer Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) has increased reserves at the Tomingley Gold Extension Project (TGEP) to 664,000 ounces as it readies for first stoping from the Roswell underground deposit.
Grade control drilling from the underground development at Roswell deposit, which is 3 kilometres south of Alkane’s Tomingley Gold Operations (TGO) and linked via an underground decline, has confirmed significant high-grade gold mineralisation.
Roswell reserves update
This has lifted the initial underground ore reserves for Roswell to 237,000 ounces, taking total ore reserves for Roswell, including the planned open cut, to 450,000 ounces.
The remaining 214,000 ounces of the TGEP reserves are from the nearby San Antonio deposit at which there has been no change.
Alkane Resources managing director Nic Earner said: “The updated Roswell reserve is the latest step in the development of the Roswell orebody as the new source of ore for Tomingley.
"The lift in reserve is derived from the high-density drilling that has occurred underground at the deposit, which is ongoing. This has also enabled the optimisation of mine plans and stope designs.”
Tomingley Gold Operations to Peak Hill Gold Mine - geology and resources.
About Tomingley
Tomingley Gold Project (TGP) covers about 440 square kilometres stretching 60 kilometres north-south along the Newell Highway from Tomingley in the north, through Peak Hill and almost to Parkes in the south.
The TGP contains Alkane’s currently producing TGO, an open pit mine and underground operation with a 1 million tonnes per annum processing facility which has operated since 2014.
Mineral resources for the TGEP have been revised to 1.17 million ounces with further drilling at Roswell continuing to refine and expand both the underground reserves and resources.
First stoping in April
The resource and reserves update comes as the company continues to prepare for mining of the Roswell underground deposit.
"First stoping from Roswell is expected in April as soon as the regulator has given approval to the relevant Tomingley Management Plans,” Earner said.
“Overall project approval has been granted; approval of plans is a condition required to be met prior to operational commencement.
“The higher grades expected to be mined at Roswell, together with the paste plant under construction should lift production to the run rate of 80,000 ounce per annum level.”
“This is the first stage in the pathway to regularly producing over 100,000 ounces per year at Tomingley.”
Mine development
Mine development activities have progressed from the decline with establishment of two levels, 955 and 855, with the 955 level about 300 metres below the ground surface and around 100 metres below the proposed base of the open cut.
3D Long Section TGEP.
The 955 and 855 levels have provided drill access for detailed grade control drilling which fans out to provide a 20-metre by 15-metre intersection pattern. This drilling has facilitated a revision of mineral resources using a 0.4 g/t gold cut-off and in compliance with JORC Code, 2012 edition.
Alkane’s indicated resource at Roswell converts directly to a probable reserve and takes into account 229 grade control holes totalling 33,028 metres drilled on the 955 and 855 levels.
This mineral resource will be subject to further infill and extensional drilling with a view to define the continuity of the mineralisation to the south and high-grade zones at depth.
The reserve incorporates the existing site costs and modifying factors at a 1.6 g/t gold cut-off using a A$2,350 per ounce gold price.