Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) earlier this week outlined a new high-grade gold-antimony discovery at its Costerfield operation in Victoria, with Managing Director Nic Earner saying the Cuffley pod could enter production within the next 12 to 18 months.
The company reported an exceptional intercept from hole AD270 of 580.9 g/t gold and 24% antimony over 0.61 metres, including 1,360 g/t gold and 19.7% antimony over 0.25 metres. Further drilling returned 168.9 g/t gold and 33.5% antimony over 0.9 metres and 60.1 g/t gold and 15.2% antimony over 1.26 metres.
Earner said the discovery was made in an area between Cuffley’s historical north and south high-grade panels that Alkane Resources had initially expected to be relatively low grade.
He described the results as characteristic of the smaller high-grade structures that had helped extend Costerfield’s operating life, saying such discoveries could add “half a year, one year’s production here and there”.
Importantly, Earner said the new pod was close to existing underground infrastructure and had been incorporated into the mine plan. Drilling remains underway, but he said Alkane Resources expected to be “mining this within the next 12 to 18 months”.
That development timeframe represents a potential near-term operational catalyst, while further drilling at Cuffley could provide additional information on the extent of the mineralisation.
Earner also highlighted early-stage high-grade drilling from the deeper Sub-Kasey domain, where the company is targeting mineralisation associated with major fault intersections. Further exploration results across Costerfield and the wider portfolio therefore remain another potential source of news flow.
On the corporate side, Alkane Resources has reported record FY26 revenue, which Earner said was significantly assisted by the strong gold price.
The company confirmed a fully franked dividend of $0.02 per share and announced a $50 million share buyback over the next 12 months. Earner said the measures formed part of a capital management strategy focused first on delivering growth and then returning surplus cash to shareholders.
Board appointments could also support the company’s next phase. Jennifer Purdy and the Honourable Gabrielle Upton have joined the board, adding technical, major-project, organisational and stakeholder-management experience.
Looking ahead, Earner said Alkane Resources’ overriding priority remained “delivery”, while the company continued exploration, capital programs and assessment of potential merger and acquisition opportunities.
Interview highlights
- Alkane Resources identified a new high-grade gold-antimony domain at the Cuffley Lode within the Costerfield operation in Victoria.
- Hole AD270 returned 580.9 g/t gold and 24% antimony over 0.61 metres, including 1,360 g/t gold and 19.7% antimony over 0.25 metres.
- Other Cuffley results included 168.9 g/t gold and 33.5% antimony over 0.9 metres and 60.1 g/t gold and 15.2% antimony over 1.26 metres.
- The new Cuffley pod sits between historical high-grade mining panels and is readily accessible from existing underground infrastructure.
- Nic Earner said Alkane Resources expected to mine the area within the next 12 to 18 months.
- Drilling is continuing, with the pod expected to provide an additional opportunistic source of production rather than form the principal backbone of the mine plan.
- Earner also highlighted early-stage high-grade results from the deeper Sub-Kasey domain.
- Alkane Resources reported record FY26 revenue, with the strong gold price identified as an important contributor.
- The company confirmed a fully franked $0.02-per-share dividend, with a 7 September record date and 1 October payment date.
- Alkane Resources also announced a $50 million share buyback over 12 months as part of its capital management strategy.
- Jennifer Purdy and the Honourable Gabrielle Upton have been added to the board, increasing its technical, major-project, organisational and stakeholder-management experience.
- Earner said the company’s immediate priority remained delivery against operational plans, alongside exploration, capital programs and the ongoing assessment of potential M&A opportunities.
Proactive: Alkane Resources has discovered a new high-grade gold-antimony domain at its Costerfield operation in Victoria. Here to discuss the company’s latest results at Costerfield, as well as record FY26 revenue, is Managing Director Nic Earner. Nic, good to see you again.
Nic Earner: Good to see you too, Jonathan. Thanks, mate.
Proactive: Let’s dive in. You’ve uncovered a new high-grade gold-antimony pod at Cuffley. Talk us through the results and what they’re telling you.
Nic Earner: As people who watch us regularly will be aware, at Costerfield we do drilling in and around our existing historical deposits, as well as more greenfields-style work that steps out several hundred metres.
Then there is brownfields exploration and, further out, greenfields exploration. This is an area between the historical Cuffley north and south mining areas. We were drilling in what we thought would be a relatively low-grade vacant space and we got some amazing hits. People will see results in the hundreds of grams per tonne of gold.
People should not assume this is going to be something like Fosterville. This is a very high-grade area that will be incorporated into the mine plan and could contain tens of thousands of ounces.
We’re absolutely really pleased to see it. This is the kind of thing you see at Costerfield — new vein structures that can add half a year or a year of production here and there. That’s why the mine is still going after so many years.
Proactive: It’s important to note that the new Cuffley pod is readily accessible from existing infrastructure.
Nic Earner: Yes, it’s right near it. As you can imagine, it sits between two historical mining areas.
Proactive: With that in mind, how quickly could this material begin contributing to production at Costerfield?
Nic Earner: It will definitely be within our mine plan over the next two years.
Our main aim is to have larger new areas that form the backbone — the largest percentage of ongoing production each year. Then we have smaller areas that we can access and develop opportunistically, and we expect this to be one of those.
We’re still drilling here, but we’ll be mining this within the next 12 to 18 months.
Proactive: Let’s quickly touch on the Sub-Kasey domain as well. Talk us through that.
Nic Earner: The fault structures at Costerfield drive a lot of the mineralisation at different intersection points.
We have major fault structures that have been important in driving some of the large deposits we have mined since 2019, so we continually look for new intersection points.
At Sub-Kasey, we think we’ve found an area like that. It’s early days and it is a little deeper in the mine, but people can again see some fantastic high-grade results.
Proactive: You started this week with good news, after finishing last week with good news in the form of record FY26 revenue. Talk us through the drivers.
Nic Earner: As you and I have discussed before, we had an absolutely cracking financial year, driven significantly by the high gold price, which we are again seeing strengthen.
The main thing we put out last Friday, as well as going into more detail on the balance sheet when we released the full-year financials, was confirmation of the fully franked $0.02 per share dividend.
The record date is 7 September and the payment date will be 1 October, so shareholders should be aware of that.
The other thing we announced was a $50 million buyback over the next 12 months.
Part of that reflects different tax jurisdictions. In particular, North American investors like to see a buyback as part of a capital management strategy.
We also articulated our overall capital management strategy. Number one is to get on and deliver growth for the business. After that, of course, comes returning cash to shareholders.
We hope what we are doing makes very clear the confidence we have in the business going forward.
Proactive: Speaking of that confidence, you already had a strong board and you’ve now added two new directors.
Nic Earner: Exactly. We’ve added Jennifer Purdy and the Honourable Gabrielle Upton to the board. That will go through the election process at the AGM.
This takes the board to eight.
One of the things that comes with a merger is that you combine existing boards, but a lot of those directors can be regarded as non-independent.
We had Andy Quinn, a great chairperson, who was independent, and then added Denise McComas, who is now the head of audit. She is a highly experienced audit partner and has been on the Takeovers Panel and involved in that sort of work.
But we still had only two of what was then six people regarded as independents, and we are looking for a majority-independent board.
We went out asking how we could add to the skill set.
Jennifer Purdy brings really deep technical experience and major-project experience. Gabrielle Upton has managed complex organisations, particularly within government, and is very familiar with stakeholder management.
They are really good additions to the board and we’re very pleased.
That gives us a very balanced board, with four out of eight independent, while the other directors bring a wide range of experience across the asset base.
Proactive: Everything appears to be moving in the right direction. What can we expect next from the company?
Nic Earner: Number one is delivery to plan.
We expect continued exploration results because we are working across Tomingley, Costerfield and other exploration areas.
Then there are a number of capital programs that we have initiated across the asset base, including work at Björkdal and Tomingley, which we expect to continue delivering to budget.
We also maintain an interest in growing through inorganic opportunities, including mergers and acquisitions.
Of course, that is a difficult and time-consuming activity with a variable timeframe, so it is something we are always working on in parallel.
But number one, as is always the case for Alkane, is delivery.
Proactive: Nic, we’ll talk again as the company continues to hit its milestones. Thanks for your time this morning and we’ll speak again soon.
Nic Earner: Thanks, Jonathan. Cheers, mate.