Alkane Resources Limited (ASX:ALK) has revealed a resource of 108,000 gold ounces at the Peak Hill Gold Mine (PHGM), 15 kilometres south of its operating Tomingley gold mine in New South Wales.
PHGM was a fully operational open pit gold mine operated by Alkane from 1996 to 2005 that is currently under care are and maintenance.
The mine was operated using open pit mining with 153,000 ounces of gold recovered by heap leach and dump leach of the oxidised ore.
READ: Alkane Resources looks underground after stellar year at Tomingley Gold Operations
There are four pits at PHGM, the main Proprietary-Parkers Pit and three satellite pits, Bobby Burns, Crown and Great Eastern.
Alkane has defined a resource of 1.02 million tonnes grading 3.29 g/t gold (108,000 ounces gold) and 0.15% copper at the Proprietary ore body using a 2 g/t gold cut-off.
READ: Alkane Resources completes $3.7 million investment into Calidus to develop Warrawoona Gold Project
The underground resource has been estimated only for the main mineralised domain of the Proprietary ore body which extends to a maximum depth of 200 metres below the base of the current Proprietary pit.
Notably, there is scope to expand the resource at depth and in the satellite deposits within an extensive alteration zone.
Core drilling is scheduled to commence in October to provide confirmation of the geology and structures at Peak Hill, and fresh material for advanced metallurgical testing.
This re-evaluation of the potential for Peak Hill to be developed underground forms part of Alkane’s extensive regional exploration program which is in progress to provide additional ore feed for its Tomingley Gold Operations.