Alkane Resources (ASX: ALK / OTCQX: ANLKY) has successfully released the initial Inferred Resource from the San Antonio deposit at its Tomingley Gold Operations (TGO) in Australia.
Drilling completed at the San Antonio deposit has been modelled and demonstrates an Inferred Mineral Resource using a 0.5g/t gold cut-off of 7.92 million tonnes grading 1.78g/t gold (453,000oz).
Alkane said the resources at Tomingley Gold Operations (TGO) and the exploration tenements to the immediate south of the mine that include the San Antonio Deposit (4km from TGO) are now in excess of one million ounces of contained gold made up of:
- Tomingley Underground: 1.36 Mt @ 3.8 g/t Au for 165 koz Roswell Deposit: 7.02 Mt @ 1.97 g/t Au for 445 koz
- San Antonio Deposit: 7.92 Mt @ 1.78 g/t Au for 453 koz Peak Hill Underground: 1.02 Mt @ 3.29 g/t Au for 108 koz
Alkane said the Resources are now being prepared into conceptual mine plans that can be used to progress mining approvals that would allow ore from the Roswell and San Antonio Deposits to be fed into the TGO one million tonne per annum processing facility. Alkane is seeking to demonstrate a continued mine life at TGO in excess of 10 years.
The company is seeking NSW State Government Approval for an underground exploration drive to the Roswell Deposit, with equipment purchased, personnel recruited and land acquired in order to facilitate rapid development on approval.
The Tomingley Gold Project (TGP) covers an area of approximately 440km2 stretching 60km north-south along the Newell Highway from Tomingley in the north, through Peak Hill and almost to Parkes in the south. The TGP contains Alkane’s currently operating Tomingley Gold Operations (TGO), an open pit mine with a 1Mtpa processing facility that is transitioning to underground.
Over the previous two years Alkane has conducted an extensive regional exploration program with the objective of defining additional resources that have the potential to be mined either via open pit or underground operations and fed to TGO.
The programme yielded broad, shallow high grade intercepts that demonstrate potential for material project life extension in excess of 10 years and show that a return to open pit mining and/or underground extension is possible with appropriate resource confirmation, landholder agreement and regulatory approvals.