Alkane Resources Limited (ASX:ALK) (OTCMKTS:ALKEF) continues to enhance the underground mining potential of satellite deposits at Tomingley Gold Operations in Central West NSW with more high-grade results.
Drilling has identified depth extensions at Roswell deposit below the existing 445,000-ounce inferred resource with results of up to 13 metres at 6.17 g/t from 484 metres, 16.5 metres at 4.74 g/t from 483.8 metres and 22.1 metres at 5.96 g/t from 534.9 metres.
These intersections are around 80 to 100 metres below the base of the inferred resource and confirm the potential of the system to extend to depth.
“Impressive grades continuing”
Alkane Resources managing director Nic Earner said: “It is great to see these significant high-grade intercepts below the existing inferred resource at Roswell.
"These show the potential for an underground mine that continues to extend at depth, with impressive grades continuing.”
Strong results of up to 16 metres at 3.22 g/t from 264 metres and 30 metres at 2.31 g/t from 81 metres have also been received from infill drilling at San Antonio deposit which has an inferred resource of 453,000 ounces.
Updated resource expected
Roswell drilling is nearing completion and an updated resource estimate is anticipated to be released in the December quarter of 2020.
The San Antonio updated resource estimate, along with preliminary mine plans for Roswell and San Antonio, is scheduled for release late in the December quarter of 2020.
Tomingley Gold Project (TGP) covers around 440 square kilometres stretching 60 kilometres north-south along the Newell Highway from Tomingley in the north, through Peak Hill and almost to Parkes in the south.
The TGP contains Alkane’s operating Tomingley Gold Operations, an open pit mine and underground operation with a 1 million tonnes per annum processing facility.
Exploration drive
The company has approval to develop an exploration drive from the Wyoming One deposit to Roswell and has prepared preliminary plans for open-cut and underground mines beneath Roswell and San Antonio.
It is using this plan for consultation purposes as it seeks approval for mining development.
Engagement well underway
Earner said: “Our community, stakeholder and regulatory engagement on developing Roswell and San Antonio is well underway and will continue as rapidly as practicable.
“The next big step is updating the inferred resource at Roswell to indicated and we’re expecting to get this completed in October.
“The progress being made at Roswell and San Antonio further demonstrates our objective of creating shareholder value by extending the production mine life at Tomingley, in combination with strategic exploration and acquisition.”
Roswell results
At Roswell, the 13-metre intersection included 5 metres at 11.5 g/t from 488 metres and 2 metres at 3.84 g/t from 519 metres while the 16.5-metre intersection included 1-metre at 21 g/t from 489 metres and 3 metres at 13.2 g/t from 494 metres.
Other strong Roswell results are:
- 85 metres at 1.47 g/t from 273 metres, including 7 metres at 2.94 g/t from 325 metres and 10 metres at 1.59 g/t from 384 metres;
- 18 metres at 2.23 g/t from 60 metres, including 6 metres at 4.51 g/t from 60 metres; and
- 22 metres at 3.66 g/t from 288 metres, including 3 metres at 20.1 g/t from 288 metres; and 18 metres at 3.96 g/t from 377 metres, including 7 metres at 8.54 g/t from 385 metres.
San Antonio highlights
The 16-metre intersection at San Antonio included 6 metres at 6.69 g/t from 266 metres and the 30-metre hit included 9 metres at 5.89 g/t from 93 metres.
Other San Antonio highlights are:
- 9 metres at 2.51 g/t from 107 metres, including 2 metres at 8.33 g/t from 107 metres;
- 23 metres at 1.81 g/t from 208 metres, including 3 metres at 4.9 g/t from 217 metres and 3 metres at 3.62 g/t from 226 metres;
- 38 metres at 1.75 g/t from 138 metres, including 1-metre at 8.86 g/t from 162 metres and 2 metres at 7.66 g/t from 168 metres;
- 9 metres at 1.05 g/t from 54 metres, including 6 metres at 3.12 g/t from 87 metres; and
- 7 metres at 3.32 g/t from 129 metres, including 1-metre at 8.55 g/t from 87 metres.