Alkane Resources Ltd’s (ASX: ALK) is pleased to advise that it’s Tomingley Gold Extension Project has been approved by the New South Wales Minister for Planning.
The Company will now progress its Environmental Protection Licence and Mining Lease applications, which cannot be refused following the Minister’s Planning Approval. The company will also submit its’ updated Management Plans as required under the conditions of consent.
Each of these is needed to commence physical mining and construction work.
Debt funding of A$50M for the extension project has also been secured from Macquarie Bank together with 100,000oz of gold hedging with a weighted average price of A$2,825/oz.
“This approval is a significant milestone in the life of our Tomingley gold mine. We wish to acknowledge the substantial contribution from employees and consultants, led by RW Corkery & Co., and the many NSW Government department officers in reaching this point,” Managing Director, Nic Earner, said.
“We can now progress our development and expansion in earnest, delivering significant and sustained production for our shareholders, employees and other stakeholders.
“We intend to be mining underground from Roswell before the end of the year and we’re targeting a 100,000oz per annum run rate in 2025. We’re continuing to explore nearby exploration targets, including Macleans, which is immediately adjacent to our vent rise at Roswell.
“We look forward to communicating our progress and further information about the Tomingley Gold Extension Project in the months ahead.”
Tomingley Gold Operations (Tomingley) is a wholly owned subsidiary of Alkane, located near the village of Tomingley, approximately 50km southwest of Dubbo in Central Western New South Wales. The gold processing plant was commissioned in January 2014 and has been operating at the design capacity of one Mtpa since late May 2014. Mining is currently occurring on three gold deposits Wyoming One underground, Caloma Two underground and Caloma both underground and an open cut cutback.
An exploration drive currently extends over 2.4km toward the Roswell and San Antonio deposits, located within 5km south of Tomingley. The development of the Roswell and San Antonio deposits, diverting a section of the Newell Highway to the west, new and relocated infrastructure and a minor upgrade of the existing Tomingley process plan form the Tomingley Gold Extension Project (TGEP).
Project Approval to develop the TGEP has now been granted by the NSW Minister for Planning. The approval contains comprehensive and stringent requirements on Alkane to minimise the impact on the environment and the surrounding community.
The approved TGEP development permits the following key aspects:
• Open cut mining at Roswell and San Antonio;
• Underground mining at Roswell;
• Processing at a maximum of 1.75Mtpa;
• Paste filling of underground stopes at Roswell;
• Diverting a section of the Newell Highway that lies above Roswell and San Antonio to the west;
• Mining operations until the end of 2032; and
• Further lifts to the RSF2 sufficient to contain the mine residue that may be produced in that time.
Pending the applications for the Environmental Protection Licence and the Mining Lease, which cannot now be refused, and completion of its’ updated Management Plans, Alkane intends to be mining ore from underground at Roswell before the end of CY2023.
Alkane has executed a A$50M finance facility with Macquarie Bank Limited (Macquarie) to develop the Tomingley Gold Extension Project.
For further information please visit: https://www.alkane.com.au/
