Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) has reported further high-grade gold results from near-mine drilling at the Björkdal Gold Mine in Sweden, with new intercepts extending mineralisation at depth and supporting the company’s push to grow resources and mine life.
The latest program comprised 29 growth and infill diamond drill holes for 15,568 metres, focused on the Eastern and Northern extensions of the underground mine.
The work has improved confidence in vein geometry, grade continuity and the structural controls that influence mineralisation.
Alkane has ended FY2026 in the top half of production guidance after delivering 42,491 gold-equivalent ounces in the June quarter and lifting closing cash by $104 million to $432 million.
High-grade hits support extension potential
The strongest result came from the Eastern Extension, where drill hole MU25-030 returned 86.1 g/t gold over 1.25 metres, with an estimated true width of 0.80 metres. Other Eastern Extension highlights included 81.3 g/t gold over 4.40 metres, 78.3 g/t gold over 0.30 metres and 39.3 g/t gold over 0.50 metres.
Core tray photograph from MU25-030, where the highest-grade interval of the drill program was intersected.
In the Northern Extension, notable assays included 31.5 g/t gold over 0.85 metres, 25.2 g/t gold over 0.60 metres, 17.1 g/t gold over 0.80 metres and 15.4 g/t gold over 4.00 metres.
Alkane said the drilling had supported grade continuity across both target areas, with high-grade intercepts in the Eastern Extension pushing known mineralisation to 762 metres below surface — the deepest yet recorded in the field.
Eastern Extension delivers deepest intercept
Thirteen holes were completed along the eastern flank of the mine for 6,304 metres, targeting strike and depth extensions of Main Zone veining within the underground mine.
The company identified 169 ore-grade intercepts in the target zone, including the standout 86.1 g/t gold result in MU25-030. The program also delivered Björkdal’s deepest intercept to date, with MU25-021 returning 3.5 g/t gold over 3.20 metres at -762 metres elevation.
Northern Extension confirms vein swarms
At the Northern Extension, Alkane completed 16 holes for 9,264 metres, with an average hole depth of 580 metres. The program was designed to improve the company’s understanding of vein morphology and structural controls, while testing northern and western extensions of known veining.
Drilling confirmed previously identified vein swarms and strengthened the geological model for the area. A total of 68 ore-grade intercepts were reported, with mineralised veins confirmed up to about 600 metres from existing underground development.
Confidence grows at long-life Swedish asset
Managing director and CEO Nic Earner said the results reinforced Alkane’s confidence in Björkdal’s ongoing potential.
“We are encouraged by the results coming from our near mine extension programs at Björkdal. The positive results indicate that the mineral system is still strong and open at depth. These results, together with the new resource at Storheden, support our confidence in the potential to increase production in addition to the longevity of the operation,” Earner said.
Björkdal is in northern Sweden, about 28 kilometres northwest of Skellefteå, and has produced around 1.69 million ounces of gold since mining began in 1988. The operation has a 1.4-million-tonne-per-annum processing plant and is now wholly owned by Alkane following its merger with Mandalay Resources in August 2025.
Alkane said mineralisation remains open at depth and along strike in both the Eastern and Northern extension areas.
In FY27, underground drilling will continue through staged infill and extension programs aimed at improving geological confidence and testing mineralisation continuity. At the Northern Extension, drilling will be supported by a dedicated underground drill platform, while Eastern Extension work will focus on step-out testing to assess the continuity of known vein swarms and refine structural controls.