www.alkane.com.au
Alkane Resources (ASX: ALK) is a multi commodity mining and exploration company focused on the Central West of New South Wales, Australia. Alkane's shares are also listed as American Depository Receipts (ADR's). The company has built a gold resource inventory of over 1 million ounces at McPhillamys near Orange in a venture with Newmont Australia.
The Company has an advanced feasibility study in progress for the development of the Dubbo Zirconia Project which is based upon a very large in-ground resource of the metals zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements.
World zircon shortage leads Alkane Resources to double output at Dubbo Project
A shortfall in the world supply of zircon and positive reaction from potential customers has led to Alkane Resources (ASX: ALK) scaling up the base case for its Dubbo Zirconia Project (DZP) to 400,000 tonnes pa throughput and doubling product output.
Zircon is the primary feed material for the downstream zirconium chemicals industry and, as with the rare earths industry, China dominates the market, supplying 90% of the world's requirements. However, a key difference is that China relies on non-domestic imports of zircon. Currently, there does not appear to be new resource potential that is capable of filling the shortfall.
Both aspects highlight the strategic significance of the DZP which is one of the world's most advanced developments for zirconium, niobium, yttrium and rare earth production and is based on a world class resource.
The Demonstration Pilot Plant continued to operate during the Quarter, trialling process innovations and improving product quality.
Similar to the rare earths industry, China dominates the zirconium chemicals industry and supplies 90% of the world’s requirements but relies on non-domestic imports of zircon.
Currently there does not appear to be new resource potential that is capable of filling the shortfall. Both aspects highlight the strategic significance of the DZP.
Alkane's quarterly report out today updates these zircon issues and progress on its key gold projects:
- Tomingley Gold Project - improving the economics of the project by defining additional open pit and underground resources with significant gold intercepts found at a new target, South Caloma. The review of the feasibility study is continuing with focus on improving the TGP’s economics through definition of additional open pit and underground resources.
Aircore drilling at the new South Caloma target, about 250 metres south of the planned Caloma open pit returned several significant gold intercepts, including 11 metres at 8.36g/t gold, 15 metres grading 4.30g/t gold and 6 metres at 7.68g/t gold.
- McPhillamys Gold Project - Newmont Australia to increase its interest in the ODEJV to 75% by completing a Bankable Feasibility Study
This month Alkane sold its residual 5 million shares in BC Iron (ASX: BCI), which it was instrumental in forming, netting $9.6 million. These funds will be used to progress the DZP and Tomingley Gold Project.
Alkane held $1.8 million in cash, excluding proceeds from the sale of BC Iron shares.
