Alkane Resources Quarterly Report Highlights Gold Sales, Resource Updates, and Expansion Progress
Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) reported its financial and operational performance for the March quarter, showcasing key developments in its gold mining operations and exploration projects.
Gold Production and Sales:
Alkane’s Tomingley Gold Operations produced 10,861 ounces of gold during the quarter, below forecasts due to lower recoveries. The company sold 10,385 ounces of gold at an average price of A$2,933 per ounce, generating A$30.5 million in revenue. Despite these challenges, Alkane maintained its full-year guidance for Tomingley, targeting production between 60,000 to 65,000 ounces at an AISC of $A1,750 to $2,100 per ounce.
Roswell Deposit Resource and Reserve Update:
The company released an updated mineral resource and reserve estimate for the Roswell Deposit within the Tomingley Gold Extension Project (TGEP). The updated estimates indicate significant potential for future production, with an open-cut resource of 3.9 million tonnes at 1.7 g/t gold for 213,000 ounces and an underground resource of 5.55 million tonnes at 2.7 g/t gold for 489,000 ounces. The open-cut reserve stands at 3.9 million tonnes at 1.7 g/t gold for 213,000 ounces, while the underground reserve is estimated at 3.209 million tonnes at 2.3 g/t gold for 237,000 ounces.
Expansion Project Progress:
Alkane continues to advance its expansion capital works at Tomingley. Concrete works for the paste plant are complete, with the belt filter now in place. Stope mining of ore at Roswell has commenced post-quarter end, and concrete works at the process plant flotation and fine grinding circuit are nearing completion. These developments lay the foundation for increased gold production in the future.
Exploration Activities:
Exploration activities continued at the Northern Molong Porphyry Project, with diamond core and RC drilling at Kaiser. The updated Kaiser mineral resource estimation is expected by the end of April 2024, followed by a scoping level assessment of potential project economics later in the quarter.
Financial Position:
At the end of the March quarter, Alkane’s cash, bullion, and listed investments totaled A$41.1 million, supported by an undrawn project finance facility of $50 million. The company’s total liquidity reached $91.1 million, providing a solid financial base for ongoing operations and expansion plans.
Outlook:
Alkane remains committed to optimizing operations at Tomingley while advancing its expansion projects and exploration activities. The company expects to complete its budget review for Tomingley in June and anticipates further progress updates on its projects in the coming months.
