Alkane Resources will develop the Wyoming One underground operation at the Tomingley gold project in New South Wales following board approval.
The Tomingley mine began operations in January 2014 as an open-pit mine with a relatively short run of mine (ROM) and four deposits: Wyoming One, Wyoming Three, Caloma and Caloma Two.
Mining has since been completed at Wyoming Three and Caloma.
Open cut operations at the remaining deposits, Caloma Two and Wyoming One, will continue into early next year before switching to underground mining from April 2019.
Underground support work will commence in late 2018, with first ore from Wyoming One expected in mid-2019 at an overall cost of $25 million.
The company’s overall guidance for the 2019 financial year— the last financial year in which Tomingley’s open cut product will be included — is set at 30,000–35,000oz at $1300-1400/oz.
The new underground work is expected to produce 93,000oz of gold over a 40-month period at a cost of $1100–1200/oz.
Tomingley’s total measured, indicated and inferred resources stand at 1.24Mt at an average 2.7g/t for 108,000oz.
The company is also in the middle of a regional development and exploration program from Tomingley and the nearby Peak Hill area that is to be completed by the end of 2018.