Boda-Kaiser drilling Alkane Resources

Alkane: Scoping Studies show Boda-Kaiser could be ‘large’ mine

Alkane Resources (ASX:ALK) reveals the Boda-Kaiser Copper-Gold Project in New South Wales could be a “large” mine and processing facility and deliver economic returns, following completion of a Scoping Study. 

The Scoping Study evaluated three possible scenarios, comprising mining and processing 20 million, 10 million, and 5 million tonnes of ore per year. 

Alkane, which has a market capitalisation of $310.79 million, says the evaluations show the largest development scenario has the most value due to the potential economies of scale. 

The 10-million-tonne-per-year development could form part of a staged build for a larger project or as a standalone project in a rising gold and copper price environment. 

However, the company says it is unlikely that a 5-million-tonne-per-year development will meet its investment return at the current gold and copper prices. 

Gold is currently fetching around US$2,370 ($3,518) an ounce and copper is trading at US$9,869 per tonne.

Managing Director Nic Earner says “this Scoping Study shows that at current copper and gold prices a large mine and processing facility can be built at Boda-Kaiser with strong economic returns that could provide supply into global gold and copper markets — both highly attractive commodities with strong market fundamentals over the long term.”

“There remains significant potential to add both to the overall resource with further exploration, and to the potential project economics with further examination of mining cost and method, particularly large-scale underground mining.

“Our focus over the next year at Boda-Kaiser is regional exploration, environmental studies, increasing our understanding of mining options and discussions with potential strategic partners.”

The company plans to conduct baseline environmental monitoring and impact assessments for project approval in the future. 

Alkane is also considering the potential routes for infrastructure to the Boda-Kaiser area, particularly for the supply of power and water, while also conducting ongoing metallurgical testwork and optimisation of the flowsheet. 

While this is ongoing, Alkane will continue to engage with local stakeholders and progress exploration throughout the broader Northern Molong Porphyry Project area and evaluate potential funding pathways and potential partners. 

Alkane Resources is a gold and copper-focused company that owns the Tomingley Gold Project in central New South Wales. 

Write to Aaliyah Rogan at Mining.com.au   

Images: Alkane Resources
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.