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.
Alkane Resources completes Tomingley Gold Project DFS, proceeds to financing
Alkane Resources (ASX: ALK) has completed the definitive feasibility study (DFS) for its Tomingley Gold Project (TGP) in the central west of New South Wales.
Tomingley can recover 369,261 ounces of gold over a 7.5 year mine life, representing A$516 million in revenue, according to the DFS base case.
The project offers a cash flow opportunity as Alkane builds its portfolio of projects in the central west of the state.
Noah’s Rule Pty Ltd, financial advisors for the TGP, are currently negotiating financing alternatives with hedging facilities to provide gold revenues at least A$1,500 per ounce.
The application for project approval from the NSW Minister for Planning is also being progressed.
Alkane has identified exploration prospects with resource potential in the immediate area of the existing gold deposits that could add to the resource base and extend mine life.
Tomingley is centred on three gold deposits Wyoming One, Wyoming Three and Caloma, located 14 kilometres north of the Company’s Peak Hill Gold Mine.
Importantly, the region has substantial existing infrastructure with a population base exceeding 150,000.
The DFS was compiled by Mintrex Pty Ltd, the consulting division of Perth engineering group, Holtfreters Pty Ltd with input from Alkane personnel and external consultants.
The base case development for the TGP will comprise open pit mining from the Caloma, Wyoming One and Wyoming Three pits and underground mining from Wyoming One.
The Caloma pit will be mined first, followed by Wyoming Three and Wyoming One. Ore from the Caloma pit will be hauled under the Newell Highway using a purpose bulit underpass.
The company plans to feed high grade ore that will be processed on site to the mill and to stockpile lower grade ore to be processed later in the life of the mine.
Tomingley Gold Project currently has an 840,000 ounce gold resource within the Wyoming and Caloma deposits, development potential is for 50,000 to 60,000 ounce per annum production.
Alkane's other major projects include the Dubbo Zirconia Project, the only heavy rare earths project outside China to come onstream in the next couple of years, and the McPhillamys Gold Project, one of the biggest gold finds in NSW over the past decade.
Alkane has a market capitalisation of A$210 million and had A$6.8 million cash at the end of the September quarter with no debt.
