Alkane Resources Ltd (ASX:ALK) welcomes the news that its Tomingley Gold Extension Project has been approved by the New South Wales Minister for Planning.
Project site layout at Tomingley.
Open cut and underground mining
The approval allows for open cut and underground mining at the Roswell and San Antonio deposits, processing of ore at 1.75 million tonnes per annum, the relocation of the Newell Highway and an extension of the mine life to 2032.
Underground mining at Roswell is due to kick off before the end of 2023.
The company will now progress its environmental protection licence and mining lease applications, which cannot be refused following the minister’s planning approval.
The company will also submit its updated management plans as required under the conditions of consent. Each of these is needed to commence physical mining and construction work.
Debt funding secured
Debt funding of $50 million from Macquarie Bank has been secured for the development.
The company says that 100,000 ounces of gold hedging with a weighted average price of A$2,825 per ounce has been put in place for the period March 2024 to December 2026.
Debt funding of $50 million for the extension project has also been secured from Macquarie Bank together with 100,000 ounces of gold hedging with a weighted average price of A$2,825 per ounce.
Alkane managing director Nic Earner said: “This approval is a significant milestone in the life of our Tomingley gold mine.
“We wish to acknowledge the substantial contribution from employees and consultants, led by RW Corkery and Co, and the many NSW Government department officers in reaching this point. We can now progress our development and expansion in earnest, delivering significant and sustained production for our shareholders, employees and other stakeholders.
“We intend to be mining underground from Roswell before the end of the year and we’re targeting a 100,000 ounce per annum run rate in 2025. We’re continuing to explore nearby exploration targets, including Macleans, which is immediately adjacent to our vent rise at Roswell.
“We look forward to communicating our progress and further information about the Tomingley Gold Extension Project in the months ahead.”