Gold production looks set to continue for gold miner and multi-commodity explorer, Alkane Resources (ASX:ALK), from its central west NSW mine, Tomingley Gold Operations near Dubbo.
Gold production was above forecast for the quarter and sale of 10,780 ounces gold at an average price of A$1,882/ounce gave revenue of A$20.3 million. A total of 48,969 ounces of gold were poured for the financial year with an AISC of A$947/ounce
Guidance for FY20 is production of 27,000 to 32,000 ounces of gold at an AISC of A$1,300 to A$1,450 per ounce, in line with the existing underground business case.
This week, Alkane released an Exploration Target for the combined Roswell, San Antonio and El Paso prospects this week, which lies within eight kilometres of Tomingley Gold Operations
The Dubbo Project (DP) remains construction ready, with the mineral deposit and surrounding land wholly owned, all material State and Federal approvals in place, an established flowsheet and a solid business case.
During the quarter, a binding agreement was executed with Ziron Tech of South Korea to fund a commercial scale pilot plant facility to complete final stage research, piloting and feasibility to convert metals, including key Dubbo Project metals, of high marketable purity. The agreement involves an investment by Alkane of US$1.2M in Clean Metal Processing Technology with Ziron Tech.
The Group’s cash and bullion position totalled A$80.8 million, with A$69.6M in cash, bullion on hand at fair value of A$3.4M, and A$7.8M of listed investments at market value.