Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) has enhanced its confidence in the production potential of the Northern Molong Porphyry Project (NMPP) in Central West New South Wales with a revised resource estimate for Kaiser deposit.
Kaiser, one of several deposits in the NMPP to the northeast of the company’s Tomingley Gold Operations, now has an indicated and inferred resource of 213 million tonnes at 0.55 g/t gold equivalent for 3.74 million ounces.
Significantly the revised estimate has improved the grade to 0.28 g/t gold and 0.20% copper with Kaiser now hosting 1.9 million ounces of gold and 420,000 tonnes of copper.
NMPP global resource
Including Kaiser, the Boda district of the NMPP has a global resource of 796 million tonnes at 0.58 g/t gold equivalent for 14.7 million ounces. The grades are 0.33 g/t gold and 0.18% copper for 8.3 million ounces of gold and 1.5 million tonnes of copper.
Indicated resources total 537 million tonnes at 0.32 g/t gold and 0.19% copper for 5.6 million ounces of gold and 1.0 million tonnes of copper while inferred resources amount to 258 million tonnes at 0.33 g/t gold and 0.18% copper for 2.7 million ounces of gold and 500,000 tonnes of copper.
“Greater confidence”
Alkane managing director Nic Earner said: “The Kaiser resource update gives even greater confidence in the significant potential of the Northern Molong Porphyry Project.
“The definition has increased from inferred to indicated with increases in the gold and copper grades. The total resource contains approximately 8 million ounces of gold and 1.5 million tonnes of copper, with two-thirds classified as indicated.”
Extensive drilling
The update estimate follows an extensive drilling program extending over three kilometres from Kaiser to
Boda and down to Boda 2-3 and is confined to a surface area of 1,100 metres strike length and 650 metres width.
It utilises assay results from 217 drill holes for a total of 94,779 metres comprising of 41,487 metres of diamond core and 53,292 metres of RC drilling. The revised estimation is based on an extra 120 drill holes for a total of 50,090 metres.
Alkane believes this system has the potential to be a large, tier-one gold-copper project.
Viable flowsheet
Substantial metallurgical test-work has established a viable and simple flowsheet with overall recoveries at Kaiser of 81% for copper and 71% for gold and at Boda of 87% for copper and 81% for gold with a saleable concentrate.
"This updated resource has been delivered at an overall discovery cost of less than A$4 per equivalent ounce. This compares favourably to industry averages and is a credit to the hard work of the exploration team,” Earner said.
Scoping study
The recently revised Boda district resources will be used in a scoping study for potential development. The scoping study is expected to be released later this quarter.
Meanwhile, drilling continues to define the overall system, with extensions being tested at depth at Boda 2-3 and across several regional targets.
“We’re finalising the scoping study that outlines the economics of the Boda & Kaiser district, with potential mine plans currently being developed from the updated resources,” Earner added. “We’re on track to have that completed in the current quarter.”