Gold miner and multi-commodity explorer, Alkane Resources (ASX: ALK), today reports drill results from near its central west NSW Tomingley gold mine which it describes as “great news” and pointing to “substantial” mine life extension for Tomingley.
The results are from the El Paso prospect 7km south of Tomingley and together with results from two other nearby prospects show a cumulative strike length of 2,500 metres of gold mineralisation within 8 kilometres of the mine.
The objective of the regional exploration program has been to provide a broader source of ore feed, either at surface or underground, to extend the future of the Tomingley mine.
Drill results from El Paso intersected gold mineralisation which Alkane Resources described as “substantial” and ranged from:
- 21 metres grading 2.38g/t Au from 141 metres, to
- 6 metres grading 10.65g/t Au from 168 metres, which included 3 metres grading 17.80g/t Au from 171 metres
For the recent March quarter Alkane Resources reported Tomingley gold production above forecast at 10,669 ounces, with gold sales totalling 10,791 ounces generating revenue of A$19.9M at an average price of A$1,841/ounce.
At 31 March 2019 Alkane’s cash and bullion position totalled A$78.8M.
Alkane has provided FY19 production guidance of 42,000 to 47,000 ounces of gold at an AISC cost of A$950 to A$1,100 per ounce.