Alkane Resources plans to increase the life of its Tomingley gold operations in New South Wales past 2030, adding more than seven years to the current mine life.
Tomingley will be expanded immediately south into the Alkane-owned Roswell and San Antonio deposits, which reportedly contain 660,000 and 406,000 ounces of gold, respectively.
The expansion through to at least 2031 would see approximately 745,000 ounces of gold as processing ramps up to 1.5 million tonnes per annum.
Alkane managing director Nic Earner said the proposition of seven extra years was extremely exciting.
“With existing underground and open cut operations we are well placed to incorporate the new resources defined by Alkane’s exploration team at the nearby Roswell and San Antonio deposits,” he said.
“We intend to increase our processing throughput and ramp production to over 100,000 ounces per year from financial year 2025, while continuing production at the current run rate in the interim.”
The ramp-up would see 50,000-60,000 ounces produced in the 2022 and 2023 financial years, before increasing up to 115,000 ounces in 2025 to 2027.
“With the high-grade Roswell deposit open at depth, there is real potential for further increases in production in the late 2020s,” Earner said.
The expansion would require the diversion of the Newell Highway onto Alkane-owned land.
The cost of the highway diversion, plus plant upgrades and other capital-intensive activities, would be around $87 million.
Earner said the go-ahead on the expansion will be subject to the relevant approvals.
“We expect to submit our Environmental Impact Statement (EIS) for project approval in the coming quarter, and we are continuing consultation with interested stakeholders,” he said.
Tomingley has already produced 6.27 million tonnes of ore at an average grade of 1.95 grams of gold per tonne.