A slower-than-expected start to the ramp-up period at the Roswell operation of the Tomingley Extension Project of Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) in Central West New South Wales has impacted gold production, although the company says the Tomingley project is now performing well.
The company mined ~15,700 ounces and produced 9,260 ounces during April and May 2024 with June production expected to be between 6,000 and 9,000 ounces.
As a result, Alkane expects mined ounces in the June quarter to be ~22,000 to 25,000 ounces of gold with a corresponding build in stockpiles and gold-in-circuit.
Guidance revised
Alkane said that the ramp up at Roswell had not been sufficiently rapid to allow the original guidance to be met.
The company has accordingly revised its FY2024 production guidance for the Tomingley Gold Operations (TGO) to 55,000 to 58,000 ounces at an estimated AISC of A$2,150 to $2,350 per ounce. This was previously 60,000 to 65,000 ounces at an AISC of $A1,750 to $2,100 per ounce.
TGO produced 49,158 ounces of gold for the 11 months to May 31, 2024.
“Starting to deliver”
Alkane managing director Nic Earner said: “Tomingley is starting to deliver from the Roswell underground.
"The Roswell ramp up has not been sufficiently rapid for us to meet our original FY24 guidance, particularly given the recovery issues experienced in February from a discrete mining area in Caloma Two, as highlighted in our March quarterly report.
“Tomingley is now performing well, and the paste plant and flotation circuit upgrades remain on schedule.
"We look forward to releasing our updated Tomingley 5-year plan shortly,” he added.