Alkane amps up gold production guidance

Alkane Tomingley gold project pit

Alkane Resources is finalising feasibility plans for the Roswell and San Antonio underground mines in New South Wales in the coming months after increasing its gold production guidance by 2000 ounces.

The gold miner produced 15,919 ounces of gold at the Tomingley Gold Operations in New South Wales in a strong December quarter,  which was well above its 11,499-ounce guidance.

Alkane’s Roswell and San Antonio deposits are located south of the Tomingley mine and will form the Tomingley gold extension project.

According to Alkane, the Tomingley Gold Extension project is a $30 million project that will secure an additional 150 jobs for the region.

The company has now boosted its guidance for the 2021 financial year to between 47,000 and 52,000 ounces, which will be leveraged at an all in sustaining cost of $1450 to $1600 per ounce.

Infill drilling within the Roswell and San Antonio deposits has also been completed.

Alkane updated its global mineral resource for the Roswell deposit to 10.1 million tonnes at 2.04g rams per tonne of gold, with total contained ounces increasing by 50 per cent from the inferred mineral resource announced in January 2020.

Alkane’s gold sales for the December quarter recorded 16,613 ounces sold for a revenue of $38.2 million.

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