Alkane Resources (ASX:ALK) is aiming to increase production at its Tomingley Gold Extension Project in New South Wales, upon lifting the reserves to 664,000 ounces of gold.
Managing Director Nic Earner says: “The higher grades expected to be mined at Roswell, together with the paste plant under construction should lift production to the run rate of 80,000 ounce per annum level.
This is the first stage in the pathway to regularly producing over 100,000 ounces per year at Tomingley.”
The $301.71 million market capitalisation company recently conducted grade control drilling from the underground development at the Roswell deposit, which confirmed ‘significant high-grade’ gold mineralisation, resulting in lifting the initial underground ore reserves for Roswell to 237,000 ounces.
Earner says the updated Roswell reserve is the latest step in developing the Roswell orebody as the new source of ore for Tomingley.
“The lift in reserve is derived from the high-density drilling that has occurred underground at the deposit, which is ongoing. This has also enabled the optimisation of mine plans and stope designs.
First stoping from Roswell is expected in April as soon as the regulator has given approval to the relevant Tomingley Management Plans. Overall project approval has been granted; an approval of plans is a condition required to be met prior to operational commencement.”
Since 2017, Alkane has conducted a series of extensive regional exploration programs that led to the definition of resources at Roswell and San Antonio.
The Tomingley Gold Project covers a 440km-square area and encompasses Alkane’s Tomingley Gold Operation — an open pit mine and underground operation with a 1 million tonnes per annum processing facility that has operated since 2014.
Alkane Resources is a gold producer and explorer headquartered in Perth, Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Alkane Resources
