Tomingley Gold Operations (Tomingley)
- Gold production of 18,418oz was on forecast for the quarter, with site operating cash costs at A$1,840/oz and AISC of A$2,182/oz. Site operating cash flow was A$19.2m for the quarter.
- Gold sales for the quarter of 18,208oz for revenue of A$62.3m at an average price of A$3,422/oz.
- FY2025 guidance for Tomingley of 70,000oz to 80,000oz production at an AISC of A$2,400/oz to $2,600/oz remains unchanged. The AISC guidance reflects a one-off cost for decline development that is accounted as sustaining capital and included in the AISC.
- The initial grade reconciliations from Roswell are performing well with a positive reconciliation of 14% to date.
Tomingley Gold Extension Project (TGEP)
- The paste plant and the process plant flotation and fine grinding circuit remain on schedule to be commissioned in Q4 2024. Processing recoveries are expected to lift by ~7% post commissioning of new circuit.
- The surface internal access road and pipeline corridor from Caloma Two to Roswell is complete with the new pipelines being laid.
- The fleet of new CAT 2900XE underground loaders is now operational.
- The Newell Highway road diversion construction contract has been awarded.
Exploration
- Mineral Resources and Ore Reserves for Tomingley were re-estimated to account for additional resources, mining depletion, changes in gold price and operating costs (see ASX Announcement 4 September 2024), resulting in a net increase of 11% in reserve ounces.
- Results released from early-stage exploration at the Rockley Project, located 35km south of Bathurst in the Central West of NSW, have identified multiple occurrences of base metal alteration and generated several prospective targets (see ASX Announcement 8 August 2024).
- Activities around Boda-Kaiser included re-assaying, passive seismic surveys and the drilling of bores for groundwater monitoring purposes.
Corporate
- Cash, bullion, and listed investments position totalled A$52.0m. Total liquidity was $67.0m at the end of the quarter including the A$15.0m undrawn portion of the $60.0m project finance facility.
- Significant investments of $14.2m were made during the quarter in the Tomingley expansion – details are discussed in the Corporate section of the report. This current phase of capital growth is coming to an end with the December 2024 quarter expected to be approximately cash-neutral at a group level.
- Alkane contributed A$1.0m to the capital raising conducted by Medallion Metals Limited (ASX:MM8), resulting in ownership of ~5.4% of their shares on issue.
Alkane Managing Director, Nic Earner said: “This has been another quarter of solid production performance that has been leveraged by the strong gold price.
“We remain on track with our capital expansion work, with both the Paste Plant and Processing upgrades scheduled for commissioning in the December quarter of this year.
“We’ve passed the point of peak expenditure in the current phase of the Tomingley expansion as we look to continue to grow production through commissioning of the new plants. We will then be focusing on the Newell Highway diversion and maintaining a high level of operational excellence to maximise the value of our increased production capacity.”