Alkane Resources Limited (ASX:ALK) is now sitting on 14.1 million tonnes grading 2 g/t gold for 904,000 ounces at Roswell deposit within the Tomingley Gold Operations in Central West New South Wales following a recent 7,000-metre drilling campaign.
This increases the mineral resource at the satellite deposit by more than a third and the resource remains open to the north and at depth within the main andesite and the newly defined western monzodiorite.
Total resources at San Antonio and Roswell (SAR) deposits to the south of the existing operations now stand at 21.4 million tonnes grading 1.90 g/t gold for 1.31 million ounces.
Development and infrastructure
Alkane’s intention is to develop these resources as soon as possible following approvals, which continue apace and are expected to conclude in the middle of the year.
The company has continued consultation with its key stakeholders, including landholders and regulators, to develop an underground exploration drive from the Wyoming One deposit to Roswell, with the drive now located approximately 1,400 metres north of Roswell.
Alkane has also prepared preliminary plans for both open-cut and underground mines at Roswell and San Antonio.
Regulatory approval
These plans formed the basis for the application for project approval that Alkane made to the NSW Government. The approval process is underway.
The Environmental Impact Statement has been on public display with all submissions now received by the NSW Department of Planning and Environment.
Alkane expects to respond to these submissions throughout the coming month and have the project approvals ticked off by mid-2022.
Exploration drilling is ongoing at the recently discovered McLeans and Plains prospects.
“A further 10+ year mine life”
Alkane Resources managing director Nic Earner said: “The Roswell resource continues to grow and, together with San Antonio, and continued reserve replacement at Tomingley underground, is showing the resources that should deliver a further 10+ year mine life for Tomingley.
“In June 2021 we detailed the Life of Mine plan and discussed the upside potential that exists to maintain production at over 100,000 ounces of gold a year not only from 2025, but beyond 2028. This resource upgrade certainly demonstrates that possibility.
“With the project approval process well underway we look forward to delivering on this potential for our shareholders, employees and other stakeholders in NSW.”
About the Tomingley Gold Project
The Tomingley Gold Project covers around 440 square kilometres of NSW, 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 project contains Alkane’s currently producing Tomingley Gold Operations (TGO), an open pit mine and underground operation with a million-tonne processing facility.
Over the past four years, Alkane has conducted an extensive regional exploration program which led to the definition resources at the Roswell and San Antonio prospects.
Watch: Alkane Resources sitting on 904,000 ounces of gold at Roswell deposit