Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) is making strong progress at its Northern Molong Porphyry Project in New South Wales which includes the highly prospective Boda and Kaiser deposits, according to RaaS Advisory.
The company recently revealed high-grade results from the Kaiser resource upgrade drilling program and upgraded the Boda resource to 6.6 million ounces (Moz) of gold equivalent (AuEq), with 4.4Moz AuEq inferred.
Read: Alkane Resources fields strong copper-gold results near surface and at-depth as it moves towards Kaiser resource update
RaaS Advisory expects the latest drill results to add to Boda-Kaiser’s MRE of 15.7 million tonnes, potentially including some indicated resources and be used to scope potential development.
The Perth-headquartered company also owns and operates the Tomingley gold mine and processing facilities, south-west of Dubbo in New South Wales.
Alkane noted in its recently released H1 FY24 results, that it was on track to meet its FY24 production guidance at Tomingley for 60- 65,000 ounces at an all-in sustaining cost (AISC) of A$1,750 to A$2,100/ounce.
In late 2022, the company started the Tomingley gold extension project which involves the development of an underground mine at Roswell, south of the existing mine and one large open cut pit covering the Roswell and San Antonio deposits.
Alkane confirmed earlier this week that the gold extension project’s reserves have been revised to 1.17Moz (previously 750koz) with internal ore reserves of 664koz, positioning the company to execute its plan to lift annual production to 100koz in 2025.
Read: Alkane Resources lifts TGEP gold reserves to 664,000 ounces; readies for first stoping
Peer producers Aurelia Metals Ltd (ASX:AMI), AIC Mines and Pantoro are similar-sized miners focused on Australian projects.
Alkane is currently priced at a ~40% premium to the average FY23a EV/EBITDA peer multiple.
RaaS Advisory believes this reflects market expectations for Boda-Kaiser and the Tomingley gold extension project.