Alkane Resources’ Tomingley gold mine has been officially opened by NSW Minister for Resources and Energy, Anthony Roberts.
The mine, located 50 kilometres southwest of Dubbo, commenced operations in early February following its first gold bar pour and the successful commissioning of the processing plant.
Today’s ceremony marks the finishing line for the $120 million project, which started construction three short years ago.
Roberts said the project is a strong investment for the local economy.
“Tomingley is expected to contribute nearly $3 million a year in royalties to the NSW economy and help frontline services such as nurses, police and teachers,” he said.
“It will provide ongoing employment for 138 people and is expected to generate 300 indirect jobs, while 85 per cent of workers on site will be locals.”
The project has a life-span of seven years with gold output expected to exceed 50,000 – 60,000 ounces of gold per year, generating around $25 million in revenue per annum.
Alkane has executed a gold hedge of 25,000 ounces at A$1449 for delivery on May 16 with Credit Suisse International, with physical gold to be delivered into the hedge or rolled inot a series of forwards depending upon the spot price at maturity.
Alkane’s director Ian Chalmers said the project would to fund the development of its $1 billion Dubbo Zirconia rare earth project.
“Delivering Tomingley on time and on budget, funded without debt, is a reflection of Alkane’s capabilities and with Tomingley now in production, surplus cash flows generated can be used to fund the company’s exploration and development projects and corporate expenses.”