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Mining

Alkane Resources wins mining operation of the year award

The spot gold price is at A$1,703 per ounce, well above production costs at the TGO.

Alkane Resources Ltd (ASX:ALK) was recently awarded mining operation of the year as part of the New South Wales Minerals Council Suppliers Awards.

The company’s Tomingley Gold Operations (TGO) in central west New South Wales is based on four gold deposits.

Since opening in January 2014 the operation has been an open cut mine and the company is progressing plans to take the mine underground.

READ: Alkane Resources confirms depth potential at Tomingley Gold Operations

The TGO produced 69,000 ounces of gold in FY17 despite severe rains affecting first-half production.

This resulted in FY17 revenue of $117.3 million and profit before tax and non-recurring items of $17.1 million.

The TGO has become a part of the community supporting its future

Alkane’s managing director Nic Earner said: “The mine employs locals, many of whom we’ve trained to be part of the operation, and we have also given importance to the local environment and community events as part of our operations.”

Among factors contributing to Tomingley’s award win were:

• Fleet improvement and use of a mobile crushing plant to improve throughput and productivity;

• Ongoing drilling to optimise a focus on high grade ore;

• Local infrastructure improvements, including a community hall upgrade, sealing of village streets, new works at the Tomingley Racecourse & Recreation Reserve and providing top-up water supply to the village from a bore water supply line; and

• Upskilling of the local workforce and close working relationships with contractors.

$1.3 billion Dubbo project remains construction-ready

Cash flow from Tomingley has contributed to developing Alkane’s $1.3 billion Dubbo zirconium, rare earths, hafnium and niobium project.

The project is development and construction ready, with project financing underway and current projected construction start in 2019.

READ: Alkane Resources develops new process to produce hafnium

During January 2018 Alkane outlined that it had developed a high‐purity hafnium dioxide product from the Dubbo project’s ore.

The high-purity product will help meet a growing global shortage of hafnium.

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