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: Tomingley gold project receives development boost with NSW support
Alkane Resources (ASX: ALK) has received a major boost for the development of the Tomingley Gold Project, with the company signing an agreement with the state Government.
The Deed of Agreement is with the New South Wales Department of Trade and Investment, Regional Infrastructure and Services (DTIRIS), with Alkane to receive financial assistance towards infrastructure for the development of the Tomingley.
The assistance by the state Government forms part of its objective to promote economic development in regional New South Wales, with the assistance is for a proportion of the total water and infrastructure cost budgeted at $9.7 million, subject to formal development approval.
Funds will be used for two main areas. First of all this will include upgrading water supply infrastructure, comprising the drilling and equipping of a water bore and construction of a 45.9 kilometre water supply pipeline from the bore to the Tomingley site and the Tomingley town site.
The other major area will be an upgrade to electricity supply to the Tomingley site, comprising construction of a 66kV electricity transmission line from the Peak Hill Substation and transformer at the Tomingley Substation, along with construction of a 22kV electricity distribution line of 950 metres to the water bore.
Importantly, at the end of the mine life, the water pipeline and upgraded electricity supply will remain and will provide sustainable alternate development opportunities for the local community.
Tomingley Gold Project - a plus 660,000 gold ounce resource
Tomingley already hosts a plus 660,000 gold ounce resource across three deposits, Caloma, Wyoming One and Wyoming Three, with the project having the potential for a minimum seven year mine life, with a target of over ten years.
The plan is for an open pit for the first seven years, to be followed by an underground operation.
Importantly for the project is the access to infrastructure, which includes water, power from the state grid and roads providing both primary and secondary access.
Another plus is the skilled local workforce, which includes a population base of 150,000 within 120 kilometres which can be tapped, and therefore saving costs as no fly-in-fly-out staff or accommodation will be required.
The capital costs for Tomingley is around A$90 million, which comprise a CIL plant (A$43 million), infrastructure (A$22.6 million) and owners costs of A$23 million.
Alkane is currently awaiting development consent, with Credit Suisse already granting mandate to provide up to a A$45 million debt facility with a gold hedging program to return average A$1,500 per ounce.
