Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) delivered strong gold production from its Tomingley Gold Operations in Central West New South Wales in the last quarter of the financial year, producing 17,319 ounces of gold.
This brings total production for the year for Tomingley to 57,217 ounces of gold, at the upper end of the company’s updated production guidance of 55,000 ounces to 58,000 ounces.
The cost of production during the quarter is expected to have fallen to within updated guidance, with preliminary all in sustaining costs (AISC) of between A$2,150 an ounce and $2,350 an ounce.
Looking ahead to next year, Alkane expects gold production at Tomingley to be between 70,000 ounces of gold to 80,000 ounces of gold, at an AISC of A$2,400 an ounce to $2,600 an ounce.
The company notes that this AISC includes substantial decline development costs, with the expected AISC over the company’s entire five-year plan being A$1,900 an ounce to $2,100 an ounce.
“Performing well”
Alkane managing director Nic Earner said: “Tomingley is steadily increasing production from the Roswell underground. Tomingley is now performing well, and the paste plant and flotation circuit upgrades remain on schedule.
“Alkane’s board and management acknowledge and thank the employees and contractors of the company for their strong and continued commitment to safety, production and exploration performance.”
At the quarter end, Alkane’s cash, bullion and listed investments position sat at A$54.5 million, comprising $45.5 million cash, $8.7 million of bullion on hand and $300,000 of listed investments.