Alkane Resources Ltd (ASX:ALK) has upgraded its FY 2023 guidance for the Tomingley Gold Operations in Central West New South Wales to between 62,000 and 70,000 ounces of gold at an all-in sustaining costs (AISC) of $1,550 to $1,800 per ounce for this year.
This is after Tomingley exceeded forecast in the December quarter to produce 18,301 ounces of gold, bringing the six months to December 31, 2022 production to 37,790 ounces.
Alkane’s previous guidance was for 55,000 to 60,000 ounces of gold at an AISC of $1,650 to $1,900 per ounce.
As a result of the upgrade, the company's shares have been as much as 14.8% higher this morning to $0.66.
Project extension approval soon
The company has still not received approval for the extension of Tomingley’s gold mining operations by the end of last year despite submitting all the information requested by the Department of Planning and Environment.
Alkane plans to extend the project to the recently defined San Antonio and Roswell deposits immediately south of the existing mine.
Alkane managing director Nic Earner said: “Tomingley continues to deliver outstanding performance, resulting in upgraded guidance for the 2023 financial year. The Alkane board commends the Tomingley team for their consistently strong results.
“With approvals expected shortly to extend the life of Tomingley beyond 2030 at increased production rates, we’re looking forward to developing the Roswell resource in the year ahead.”
Gold strategy
Alkane Resources aims to become Australia’s next multi-mine gold producer.
As of the end of last year, the company had $86.3 million in cash, $6.9 million in bullion in hand and $20.9 million in listed investments.
It has been operating Tomingley since 2014 and is currently expediting a development pathway to extend the mine’s life beyond 2030.
Its most advanced exploration projects in the tenement area between Tomingley and Peak Hill have the potential to provide additional ore for Tomingley’s operations.
Strong gold-copper results have also been returned from the Northern Molong Porphyry Project, including the Boda discovery, to the northeast of Tomingley.