Alkane Resources Limited (ASX:ALK) shares traded higher after releasing the maiden inferred mineral resource of 624 million tonnes grading at 0.51 g/t gold equivalent for 10.1 million gold equivalent ounces for the Boda deposit.
The Boda resource has been estimated following Alkane’s extensive drilling program at the Boda Prospect in Central New South Wales.
Boda is a landmark porphyry gold-copper system, within the Northern Molong Porphyry Project, which the company believes has the potential to be a large, tier-one gold-copper project.
The company also operates the nearby Tomingley Gold Operations.
Boda inferred mineral resource.
Alkane managing director Nic Earner said: “This initial resource begins to show the significant potential of both Boda and the larger Northern Molong Porphyry Project.
“Since the original drill discovery in 2019 we have steadily demonstrated that mineralisation extends over more than 3 kilometres from Boda Three to Kaiser.
“We are well advanced in a shallower drilling program at Kaiser-Duke that should enable an initial resource to be confirmed there.”
Shares were as much as 9.1% higher to A$1.14 and are up from A$0.895 at the market close on May 13 while the gold producer's market cap is approximately A$657.95 million.
Grade vs Tonnage curve for the Boda resource.
Earner added: “This resource at Boda is just the beginning!
“Alkane is planning further drilling across our tenement package and is continuing the preliminary work that is required to further understand mining and processing options for the future.”
The initial inferred resource for the Boda deposit was confined to a surface area of 1,000 metres strike length and 500 metres width.
It utilised assay results captured from 83 drill holes of a combined 52,390 metres of diamond core and 19,041 metres of RC (reverse circulation) drilling.
Alkane’s drilling continues to define the overall system with extensions being tested south of Boda at Boda Two and northwest of Boda towards Kaiser, in addition to infill drilling of the inferred resource.
The deposit remains open at depth and along strike to the south and along strike to the north-west within the Boda intrusive corridor.
Alkane’s preliminary metallurgical study has indicated the potential for two-stage ore processing at Boda.
The first stage would produce a copper-gold concentrate for immediate sale and the second stage produce gold bullion from cyanide leach.
Preliminary recoveries for gold, copper and silver are all modelled to be 85% from preliminary metallurgical studies.
Next steps
Drilling for the purposes of estimating an initial mineral resource is nearing completion at Kaiser and the estimation is expected in Q4 2022.
Other exploration is focused on defining higher grading centres within the 3.5-kilometre intrusive corridor as well as extending the known alteration northwest of Kaiser.