Our approach
Generating revenue to drive discovery
Increasing value for shareholders, strengthening Alkane for the long term
The key elements of our strategy are:
1.
Operating and extending the life of our Tomingley gold production facility to provide strong cash flow
2.
Using the strong cash resources to fund exploration and development of promising prospects and projects
3.
Pivoting to investigate interesting opportunities in a measured way
4.
Seeking investments in junior gold mining companies and high-potential projects, where Alkane can contribute additional capital, expertise and operating capability, for mutual benefit.
Key achievements: 2018-2023
Tomingley Gold Production
Tomingley has continued to meet or exceed annual production guidance, with resources and reserves increasing ahead of production each year.
San Antonio & Roswell deposits
Discovery of the San Antonio and Roswell deposits (2018) added 1.5Moz of gold to the Tomingley resource base, underpinning extension of the operation at increased throughput beyond 2030.
Boda Discovery
The Boda discovery (2019) led to the initial Boda and Kaiser Mineral Resource Estimates (2022 and 2023), which have a combined metal inventory of 7.3Moz of gold and 1.4Mt of copper.
ASM demerger
The 2020 demerger of Australian Strategic Materials (ASM) generated an excellent dividend for Alkane shareholders.
Plans for 2024-2026
Tomingley
The Tomingley Gold Extension Project, now underway, will ramp up production to around 100,000oz gold per year and extend operations beyond 2030. Ongoing underground drilling and development will continue to extend resources and reserves.
Near-mine gold exploration
We continue to explore promising prospects between Tomingley and Peak Hill to define additional ore resources for processing at Tomingley.
Boda-Kaiser resources
The preliminary economic assessment (expected Q2 2024) will determine the next steps for this potential tier one asset. Advancing to a development scenario would involve extensive metallurgical testing, conceptual mine planning and assessment of infrastructure requirements.
Other exploration targets in Central West NSW
Regional exploration will be scheduled according to exploration results, land access arrangements and available budget.
Alkane timeline
This decade will see operations extended at Tomingley and continued efforts to define additional ore resources. Tomingley cash flow will fund early assessment and possible development of the Boda-Kaiser resources.
We continue to maintain low-level exploration at other tenements in Central West NSW, seeking new prospects for potential development.
We continued to develop the Dubbo Project until 2020. The subsequent demerger of the holding company, Australian Strategic Materials (ASM), generated an excellent dividend for Alkane shareholders.
In November 2019, Alkane discovered significant gold-copper porphyry-type mineralisation at Boda, near Bodangora, north of Wellington. This led to the initial Boda and Kaiser Mineral Resource Estimates in 2022 and 2023 respectively. Boda-Kaiser is a potential tier-one asset, with a combined mineral resource base of 7.3 million ounces of gold and 1.4 million tonnes of copper. For these discoveries, NSW Mining awarded Alkane Explorer of the year in 2021 and 2023.
In 2018, Alkane discovered the San Antonio and Roswell orogenic gold deposits a few kilometres south of Tomingley. Development of these is now underway, extending the life of the Tomingley processing facility beyond 2030. We continue to expand and locate new ore zones within the existing developments and undertake regional exploration to extend the resource base south of Tomingley.
Tomingley was constructed on-time and on-budget and has met or exceeded production guidance every year. The operation has typically produced 60,000-70,000 ounces of gold annually, with substantial cash flow. Since mining commenced, mineral resources have grown ahead of production and the 500,000th ounce was poured in May 2022.
Alkane has used the cash flow generated by Tomingley to fund further regional exploration and development in Central West NSW.
In the 2000s Alkane discovered the Wyoming and Caloma orogenic gold deposits near Tomingley (southwest of Dubbo), along with the McPhillamy’s deposit near Bathurst. Sale of the McPhillamy’s gold project (co-owned with Newmont Exploration) to Regis Resources in 2012 helped fund construction of Tomingley Gold Operations, based on the Wyoming and Caloma deposits.
Operation of the Peak Hill Gold Mine yielded approximately 30,000 ounces of gold per year, generating cash flow to fund gold-copper exploration and early development of the Dubbo Project (critical minerals and rare earths, discovered in 1998).
Alkane focused exploration activities on the Lachlan Fold Belt in Central West NSW in the early 1990s. At the time this region was relatively unexplored.
Alkane was incorporated as Alkane Resources Pty Ltd in 1969.
