Alkane Resources Ltd (ASX:ALK) has revealed results from its first diamond holes at the Northern Molong Porphyry Project, which is an exploration project where previous drilling has outlined a large low grade gold-copper porphyry system.
The project includes the Bodangora, Kaiser and Finns Crossing propoerties.
Drilling from the Boda prospect has delivered: 68 metres at 0.35g/t gold from 476 metres; including 33 metres at 0.51g/t gold and 6 metres at 2.14g/t gold.
Over at Kaiser, results included: 30 metres at 0.23g/t gold, 0.13% copper from 6 metres and 129 metres at 0.14g/t gold, 0.11% copper from 50 metres.
Search for another Cadia
Alkane’s exploration activity has established a geological framework for the region which highlights strong similarities with the Cadia district.
Ongoing exploration success has demonstrated the margins of major magnetic complexes provide a primary control for porphyry and epithermal mineralisation, with significant intersections being reported from the Duke Target along the western margin of the Kaiser Magnetic Complex and the Boda Target at the western margin of the Boda Magnetic Complex.
This provides a combined strike length of over 900 metres.
Record gold production
Moving to Alkane's gold production asset, Tomingley, the mine delivered record production during the June quarter of 27,924 ounces at an all-in sustaining cash cost (AISC) of A$906 per ounce.
This brought the total FY2017 production from the Tomingley Gold Operations to 68,836 ounces with an AISC of A$1,335 per ounce.
FY2017 production comes in slightly ahead of recent guidance of 65,000-67,000 ounces at an AISC of A$1,300-$1,400.