Alkane Resources has confirmed the underground expansion of the Tomingley gold project at the Wyoming One deposit is on budget and ahead of schedule.
The company approved the $25 million development at the New South Wales site in September 2018 and commenced mining at the start of 2019. The deposit is designed to succeed the existing open cut Wyoming One deposit, with first stoping ore expected for delivery in August.
Alkane originally commenced operations at Tomingley in 2014 with four surface deposits: Wyoming One, Wyoming Three, Caloma and Caloma Two.
The company ceased open cut production at these deposits in January to focus on developing underground.
Alkane has since identified three further possible underground prospects, the most recent of which was found in the El Paso prospect located seven kilometres to the south of the Tomingley operation. These discoveries are part of a regional exploration program to provide additional ore feed for Tomingley.
“The team at Tomingley Gold Operations continues to perform really well, which in turn is providing a solid cash platform for the company to rapidly advance its near mine exploration,” managing director Nic Earner said.
Alkane has also revised its gold production guidance for the 2019 financial year following better than expected results in April and May at Tomingley.
The company now expected to produce 48,000–49,000 ounces of gold in the 2019 financial year, up from the previous estimate of 42,000–47,000 ounces. The company produced 8886 ounces in April and May for a total of 47,319 ounces for the financial year to date.