Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) has released its quarterly report for the March quarter, a period that saw A$30.5 million in gold sales from the Tomingley Gold Operations in Central West New South Wales and the release of an updated mineral resource and reserve for the satellite Roswell Deposit.
Tomingley Gold Operations
Gold production during the quarter was 10,861 ounces. This was below forecast due to lower recoveries from Caloma Two ore. Site operating cash costs came in at A$1,953 per ounce and an AISC of A$2,454 per ounce. Site operating cash flow was A$5.9 million for the quarter.
During the quarter, Alkane sold 10,385 ounces of gold at an average price of A$2,933 per ounce, for revenue of A$30.5 million.
Guidance for the full year for Tomingley remains unchanged at 60,000 to 65,000 ounces of production at an AISC of $A1,750 per ounce to $2,100 per ounce, with production expected to be at the lower end of guidance and costs at the upper end of guidance.
Tomingley Gold Extension Project
During the quarter, Alkane released an updated mineral resource and reserve for the Roswell Deposit at the Tomingley Gold Extension Project (TGEP).
Resource:
- Open Cut – 3.9 million tonnes at 1.7 g/t gold for 213,000 ounces.
- Underground – 5.55 million tonnes at 2.7 g/t gold for 489,000 ounces.
Reserve:
- Open Cut – 3.9 million tonnes at 1.7 g/t gold for 213,000 ounces.
- Underground – 3.209 million tonnes at 2.3 g/t gold for 237,000 ounces.
Works continue
Alkane also advised that concrete works for the paste plant have been completed with the belt filter lifted into place. Further, the stope mining of ore at Roswell has commenced post-quarter end, while concrete works at the process plant flotation and fine grinding circuit are nearing completion.
“We've had a difficult quarter at Tomingley, mining through a low recovery area at Caloma Two. Happily, that is now behind us as we ramp up mining at Roswell, both higher grade and higher recovery. The quarter saw the release of our updated Roswell resource, with a large increase in reserve,” said Alkane managing director Nic Earner.
“Our expansion capital work continues with both the Paste Plant and Processing upgrades on track for commissioning later in the year. We’re currently reviewing the budget for Tomingley and expect to have that completed in June.
“The updated resource for Kaiser will be completed and announced by the end of April. The scoping study for Boda and Kaiser will be completed in the current quarter. A lot is happening within both projects, and we look forward to communicating progress in the coming months.”
Exploration
Alkane received a number of assay results from diamond core and RC drilling at Kaiser within the Northern Molong Porphyry Project during the quarter as part of the ongoing infill drilling to allow the updated mineral resource.
The updated Kaiser mineral resource estimation is expected to be completed by the end of April 2024. A scoping level assessment of potential project economics is then expected later in the current quarter.
Corporate
At the end of the March quarter, cash, bullion and listed investments position totalled A$41.1 million, including the undrawn project finance facility of $50 million, and total liquidity was $91.1 million at the quarter’s end. It also held a shareholding of around 7% in ASX-listed gold producer Calidus Resources.
During the quarter, the company made significant investments of $31 million in the Tomingley expansion.