Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) has repaid the outstanding A$45 million Macquarie facility used to fund the expansion of its Tomingley Gold Operations in Central New South Wales.
The repayment, made entirely from cash reserves, leaves the company substantively debt free apart from standard equipment financing.
“The repayment of the A$45 million outstanding balance on our debt facility reflects Alkane’s financial flexibility following the completion of the merger. This position demonstrates the strength of Alkane's balance sheet and gives us increased flexibility to pursue strategic organic and potential external growth opportunities whilst retaining a very strong working capital position,” Alkane managing director and CEO Nic Earner, said.
Alkane reports high-grade gold intersections at El Paso prospect
Finance and operations are now well aligned, after Alkane reported significant new gold intersections from drilling at the El Paso prospect, part of the Tomingley Gold Project (TGP) in Central West New South Wales, supporting potential resource growth and mine life extension at the Tomingley Gold Operations (TGO).
Four diamond core holes targeting a dacite unit, comparable to host rocks at the San Antonio deposit, returned multiple high-grade zones. Results included 8.2 metres at 3.74 g/t gold from 224.8 metres, with 1 metre at 25.0 g/t, and 32.1 metres at 1.65 g/t from 66.9 metres, with several higher-grade intervals. The unit extends over 400 metres and remains open at depth. A 2,000-metre follow-up program is planned.
Five reverse circulation holes along the Tomingley Structure confirmed gold-bearing quartz-veined, altered sediments. Highlights included 14 metres at 0.58 g/t from 213 metres and 6 metres at 0.78 g/t from 149 metres. Further structural work is planned.
A 17,000-metre air-core program identified new gold anomalies southeast of El Paso and at the Westray prospect, with intersections up to 0.93 g/t. Deeper follow-up drilling is scheduled.
Read more: Alkane Resources extends Tomingley mine life potential with strong El Paso gold hits
What's next
Over the next 12 months, Alkane will complete magnetic surveys, mapping, soil sampling, and 6,000 metres of drilling across priority targets including El Paso, Tomingley Two, Glen Isla and Westray. Underground drilling at McLeans, Roswell North and Roswell Western Monzodiorite continues, with results due in October.