Alkane Resources Ltd (ASX: ALK) has announced the confirmation of significant gold mineralisation at the southern part of the El Paso prospect within the Tomingley Gold Operation (TGO) in New South Wales, with RC and diamond core drilling over a strike length of 480 metres.
The company reported that the RC drilling at the El Paso prospect has intersected 12m grading 4.99 grams per tonne gold from 108m, as well as 21m at 2.38gpt from 141m and 6m at 10.65gpt from 168m.
The three prospects of TGO, Roswell, San Antonio, and El Paso now show a cumulative strike length of 2,500 metres of gold mineralisation within 8 kilometres of the mine.
ALK’s extensive regional exploration program focused on the immediate mine area to the south of Tomingley. It is being continued as part of the plan to provide additional ore feed, either at surface or underground, in the future to TGO.
The company said that further drill results, to be announced in the coming weeks, are expected to confirm the potential for substantial mine life extension.
Tomingley Gold Project
Alkane’s 100%-owned Tomingley Gold Project has an area of 440km2 stretching 60km north-south along the Newell Highway from Tomingley in the north, through Peak Hill and almost to Parkes in the south.
The TGP encompasses Tomingley Gold Operations (TGO), an open pit mine with a 1Mtpa processing facility that is transitioning to underground through 2019.
Regional Exploration Program
Over the last year, Alkane has been conducting an extensive regional exploration to define additional resources that have the potential to be mined either via open pit or underground operations and fed to TGO.
This exploration drilling focussed on the Roswell, San Antonio, and El Paso prospects. The company had already reported significant broad high grade results for the Roswell prospect and San Antonio prospect.
RC Drilling at El Paso prospect
The El Paso prospect is approximately 7 kilometres to the south of the TGO processing facility. Together with the Roswell and San Antonio prospects, there is a cumulative strike length of 2,500 metres of gold mineralisation within 8 kilometres of TGO.
Currently, Alkane has reported assay results from 10 reverse circulation (RC) drill holes completed at the El Paso prospect, approximately 7km from TGO, for a total of 1,973 metres.
The current RC drilling was conducted on nominal 80 metre spaced traverses testing a strike length of over 220 metres with drill holes spaced 60 metres apart.
Substantial Gold Mineralisation
The company reported that the RC drilling results received for the El Paso prospect intersected significant gold mineralisation, with intercepts of 15 metres grading 1.05g/t Au from 48 metres; 6 metres grading 2.88g/t Au from 180 metres incl 3 metres grading 4.78g/t Au from 183 metres; 9 metres grading 1.68g/t Au from 75 metres; and 9 metres grading 1.38g/t Au from 159 metres.
Meanwhile, the intersect from hole EPP012 included 12 metres grading 4.99g/t Au from 108 metres incl 3 metres grading 11.15g/t Au from 108 metres and 21 metres grading 2.38g/t Au from 141 metres incl 6 metres grading 6.18g/t Au from 144 metres and 6 metres grading 10.65g/t Au from 168 metres incl 3 metres grading 17.80g/t Au from 171 metres. It may be noted that the hole was drilled on the southernmost RC drill traverse and this significant gold mineralisation is open to the south.
Alkane said that an additional 3,000 metres of RC drilling to further test mineralisation extensions at the Roswell and San Antonio prospects has been completed.
Assaying of the supplementary drilling program is currently underway and is expected to be announced in the coming weeks when received. These further drill results are expected to confirm the potential for substantial mine life extension.
Alkane is also planning further drilling and ground magnetic surveying.
Managing Director, Nic Earner, said: “The third new discovery by Alkane only 7 kilometres from the Tomingley Gold Operations processing plant is great news. Together with the Roswell and San Antonio prospects we now have over 2,500 metres strike length that is still open to the south towards Peak Hill. We’re looking forward to announcing further drill results in the coming weeks, and confirming the potential for substantial mine life extension.”