Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) reported its financial results for the March quarter, highlighting A$30.5 million in gold sales from its Tomingley Gold Operations and an updated mineral resource and reserve estimate for the Roswell Deposit, part of the Tomingley Gold Extension Project.
Gold production at Tomingley Gold Operations totaled 10,861 ounces, and 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 lower recoveries, the company maintained its full-year guidance for Tomingley, expecting production between 60,000 to 65,000 ounces at an AISC of $A1,750 to $2,100 per ounce.
Alkane also released an updated mineral resource and reserve estimate for the Roswell Deposit within the Tomingley Gold Extension Project. The updated estimates include 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.
Alkane continues to progress its expansion capital works at Tomingley, with concrete works for the paste plant completed and the belt filter installed. Stope mining of ore at Roswell has commenced, and concrete works at the process plant flotation and fine grinding circuit are nearing completion.
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.
At the end of the March quarter, Alkane’s cash, bullion, and listed investments totaled A$41.1 million, with total liquidity reaching $91.1 million. The company also holds a 7% shareholding in Calidus Resources.