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Alkane Resources (ASX:ALK), an established Australian gold producer, is embarking on an ambitious expansion of its Tomingley Gold Operations in New South Wales. The company aims to increase annual gold production from its current level of 60,000 ounces to 100,000 ounces by 2026, representing a significant 67% boost in output.

The expansion plan, outlined by Managing Director Nic Earner, involves a comprehensive A$132 million investment program. This includes underground development of newly discovered deposits south of the existing mine, new open pit operations, and upgrades to processing facilities. A key component of the expansion is the relocation of a national highway, highlighting the scale and complexity of the project.

Financially, Alkane is well-positioned to execute this growth strategy. The company has secured a A$60 million debt facility, which it plans to upsize to A$110 million. Importantly, Alkane expects to fund a significant portion of the expansion through operating cash flows. Earner projects potential free cash flow generation over the next five years at current gold prices, after accounting for expansion costs.

From a cost perspective, Alkane anticipates all-in sustaining costs (AISC) to average around A$2,000 per ounce (US$1,300-1,350) over the next five years. While costs are expected to be higher in the initial years due to increased development activities, they are projected to decrease below this average in later years, potentially enhancing profit margins.

The current resource base supports a mine life extending to 2032, but Alkane sees potential for further extensions. The company is actively exploring both near-mine and regional targets, allocating A$10 million annually to these efforts. Several opportunities for resource growth have been identified, including depth extensions at existing deposits and potential new underground developments.

As Alkane approaches the 100,000-ounce annual production milestone, it may attract increased attention from institutional investors. Many fund managers have minimum production thresholds for gold mining investments, often around this level. This transition could potentially lead to a re-rating of Alkane’s stock as it enters the investment universe of larger funds.

While the growth prospects are promising, investors should be aware of potential risks. These include execution risks associated with the complex expansion project, gold price volatility, regulatory and environmental factors, and the inherent uncertainties in resource development. In the broader macroeconomic context, gold producers like Alkane are operating in a complex environment. Factors such as inflation concerns, geopolitical tensions, and currency fluctuations continue to influence gold prices. Additionally, industry-wide challenges in replacing reserves and increasing focus on ESG factors are shaping the competitive landscape.

Alkane’s expansion strategy aligns well with these industry trends. By growing production and maintaining competitive costs, the company is positioning itself to capitalize on potential upside in gold prices while building resilience against market volatility.

For investors, Alkane Resources presents an opportunity to gain exposure to a growth-oriented gold producer with a clear expansion plan, potential for increased cash flow generation, and possible re-rating as it reaches a more substantial production profile. However, as with any mining investment, careful consideration should be given to the associated risks and the investor’s own risk tolerance and investment objectives.

At the 121 Mining Investment Conference, Alkane Managing Director Nic Earner talked to Crux Investor about Alkane’s plans for gold production, growth & exploration.

Nic Earner, Managing Director of Alkane Resources, presentation at the 121 Mining Investment Conference in London.

Nic Earner, Managing Director of Alkane Resources Ltd, provided an overview of the company’s operations and financial status at the Proactive One2One Investor Forum.

Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) managing director Nic Earner is back with Proactive’s Elisha Newell after the company posted a resource update for the Northern Molong Porphyry Project’s (NMPP) Kaiser deposit in Central West New South Wales.

The revised figures now indicate an overall resource of 213 million tonnes at a grade of 0.55 g/t gold equivalent, totalling 3.74 million ounces. The update follows an extensive infill drill program, which amalgamated results from 217 holes and nearly 95,000 metres of drilling activity.

The resource update is part of Alkane’s broader revision for the NMPP, including the complementary Boda deposit, which now boasts a global resource of 796 million tonnes at 0.58 g/t gold equivalent for 14.7 million ounces. Of this, 537 million tonnes are categorised as indicated resources and 258 million tonnes as inferred, highlighting substantial deposits of both gold and copper in both camps.

Notably, the metallurgical results from these deposits have supported the development of a viable flowsheet, showing promising recoveries of 81% for copper and 71% for gold at Kaiser, with results slightly higher at Boda.

Earner emphasised the heightened confidence in the Kaiser deposit’s potential, noting the transition of some resources from inferred to indicated categories and improvements in metal grades. Consequently, an upcoming scoping study — expected later this quarter — will further detail the potential economic outcomes and development plans for the Boda and Kaiser districts.

‌Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) managing director Nic Earner joins Jonathan Jackson in the Proactive studio to talk through the company’s latest quarterly and plans for the next. Alkane reported A$30.5 million in gold sales from its Tomingley Gold Operations in Central West New South Wales for the March quarter.

The quarter saw 10,861 ounces of gold produced, which was below the forecast due to lower recovery rates from the Caloma Two ore, with site operating cash costs at A$1,953 per ounce and an All-In Sustaining Cost (AISC) of A$2,454 per ounce. Despite these challenges, the site generated operating cash flow of A$5.9 million, with 10,385 ounces sold at an average price of A$2,933 per ounce, while full year guidance remains the same.

During the quarter, Alkane also released an updated mineral resource and reserve for the Roswell Deposit as part of the Tomingley Gold Extension Project (TGEP). The updated figures for Roswell include 3.9 million tonnes at 1.7 g/t gold for 213,000 ounces in open cut and 5.55 million tonnes at 2.7 g/t gold for 489,000 ounces underground in resources. The reserve estimates are 3.9 million tonnes at 1.7 g/t for 213,000 ounces in open cut and 3.209 million tonnes at 2.3 g/t for 237,000 ounces underground.

Significant infrastructure developments include the completion of concrete works for the paste plant, commencement of stope mining at Roswell and nearing completion of concrete works at the process plant flotation and fine grinding circuit. Exploration efforts continue, particularly at Kaiser within the Northern Molong Porphyry Project, with results from diamond core and RC drilling expected to update the mineral resource by the end of April 2024. A scoping study for Boda and Kaiser is also due in the current quarter.

Financially, the company ended the quarter with A$41.1 million in cash, bullion, and listed investments, plus an undrawn project finance facility of A$50 million, bringing total liquidity to A$91.1 million.

The company holds a 7% share in ASX-listed gold producer Calidus Resources and invested A$31 million in the Tomingley expansion during the quarter.

Alkane Resources Ltd managing director Nic Earner tells Proactive’s Stephen Gunnion the company has reached another milestone at its Tomingley Gold Operations in Central West New South Wales with the transition from ore development to production stoping at the Roswell deposit.

Earner detailed the completion of the exploration drive at Roswell, which had received full approval last year. He highlighted the ongoing vertical development and the commencement of stoping operations, marking a ramp-up phase. The site is set to produce a 23-24,000 tonne stope, followed by a larger phase nearly double in size.

This development supports a planned increase in mining activity to approximately 1.1-1.2 million tonnes per annum by next year. Additionally, Earner noted the construction of a new paste plant for backfill operations, aiming for full recovery with the ore graded over five grams per tonne.

Upcoming newsflow includes the company’s quarterly report this week, the long-awaited Kaiser resource statement for the Bodar and Kaiser exploration deposits, and a scoping study. Earner also mentioned a financial outlook aiming to provide a five-year projection by the end of June.

On the brink of significantly upgrading the mineral resource estimate for its Kaiser deposit in the Northern Molong Porphyry Project in New South Wales, Alkane Resources Ltd (ASX:ALK) managing director Nic Earner takes Proactive’s Jonathan Jackson through the latest drilling results. Alkane has delivered the highest gold grades observed to date at the site. Earner highlights the remarkable findings from the final 12,000-metre round of drilling, which confirmed the presence of high-grade sections and a ‘Boda’ style breccia, intensifying the deposit’s prospects. With these results, Alkane is poised to release an updated Kaiser resource estimate in April, enhancing the already impressive Boda resource figures. Looking forward, the company is conducting a scoping study to assess the mining viability of both Boda and Kaiser, with results expected in the June quarter.

Alkane Resources Ltd (ASX:ALK) managing director Nic Earner sits down with Jonathan Jackson in the Proactive studio to discuss the large increase in reserves at the Tomingley Gold Extension Project, where that increase has come from and what it means for the company’s mining plans. Earner addresses the adjustments in the resource statement compared to previous reports, highlighting the importance of these changes and the factors contributing to them. He also looks at the prospects for further expansion in Alkane Resources’ reserves and resources, examining the potential for growth and the company’s strategies moving forward.

Alkane Resources Ltd (ASX:ALK) managing director Nic Earner joins Proactive’s Jonathan Jackson in the Australian studio to talk about promising from recent infill drilling at the Northern Molong Porphyry Project (NMPP) in Central West NSW. Earner takes us through the highlights of the program and its aims to evaluate the potential of the Kaiser deposit as the company moves towards a gold-copper resource update at NMPP. Results yielded several broad intersections that reveal notable grades of gold and copper and give the company confidence in the continuity and extent of mineralisation across the project. Final results are expected to be available in March and the updated resource completed in March/April.

Alkane Resources Ltd (ASX: ALK) CEO Nic Earner joins Jonathan Jackson to discuss the company’s strong quarter and particularly the development of the Roswell resource. Earner says that extensive infill drilling of the Roswell orebody from underground continues, with around 17,000 metres drilled during the quarter. This drilling will be incorporated into an updated mineral resource in the coming quarter. Earner looks at gold production at the Tomingley Gold Operations as well as the further work being done at the Tomingley Gold Extension Project, which incorporates Roswell. Also, up for discussion is the work being done at the Boda and Kaiser deposits of the Northern Molong Porphyry Project as well as the company’s corporate highlights.

Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) Managing Director Nic Earner speaks to Thomas Warner from Proactive after the gold producer and explorer released fresh results from infill drilling at the Kaiser deposit of its Northern Molong Porphyry Project, following the previously announced resource update from the Boda deposit.

The 45,000-metre drilling campaign at Kaiser has uncovered strong mineralisation within the existing inferred mineral resource estimate (MRE) with a raft of positive results. Earner also emphasises the successful year Alkane has had, including the approval of the Tomingley Extension project and updates to the Boda and Kaiser resources. These developments have shifted the Kaiser resource from an inferred to an indicated category, marking a significant milestone for the company.

Earner concludes the interview by encouraging shareholders and potential investors to look forward to the forthcoming scoping study, which will elucidate the project’s economic potential. He expresses confidence that the study will reveal the project’s value, which he believes is not currently fully reflected in Alkane’s share price.

Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) Managing Director Nic Earner speaks to Thomas Warner from Proactive after the gold producer and explorer announced a revised indicated and inferred mineral resource estimate (MRE) for the Boda Deposit at its Northern Molong Porphyry Project (NMPP) in Central West New South Wales.

A revised indicated and inferred mineral resource estimate (MRE) for the Boda Deposit including Boda 2-3 now stands at 583 million tonnes at 0.58 g/t gold-equivalent (0.34 g/t gold and 0.18% copper) for 10.9 million gold equivalent ounces. This includes 6.38 million ounces of gold and 1.03 million tonnes of copper.

Earner highlights the key change from the original Boda resource: despite a slight reduction in tonnage, the metal grade has notably increased. He suggests that the shift is particularly beneficial as it implies mining lower tonnes for more metal, thereby increasing the potential profit margin.

Furthermore, Alkane is preparing to release updated Kaiser RC drilling results, potentially before Christmas, followed by a resource update in early 2024. He goes on to say that the company is also advancing scoping studies, including metallurgical results and engineering work, which will culminate in detailed mine plans for Boda and Kaiser.

Alongside these developments, Alkane’s Tomingley Goldmine continues to perform strongly, aligning with the company’s guidance and contributing to a successful 2023. Work on project delivery are expected to extend the mine’s life until 2032, staying within budget and schedule.

Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) MD Nic Earner tells Proactive the company has established a viable flowsheet for the processing of ore from the Boda and Kaiser gold-copper prospects within its North Molong Porphyry Project (NMPP) in Central New South Wales. Metallurgical test-work comprising conventional crushing, grinding and flotation circuits achieved overall recovery of 87.4% of copper and 80.9% of gold for Boda and 79.6% of copper and 70.7% of gold for Kaiser. Meanwhile, ALK has also reported further broad copper-gold results from drilling at Kaiser – the objective is to infill the inferred mineral resource estimation at the deposit, which currently contains 2.1 million ounces of gold and 500,000 tonnes of copper.

Nic Earner discusses current activities at Alkane and highlights from the September 2023 quarter.

Alkane Resources Ltd (ASX:ALK) managing director Nic Earner gives Proactive an overview of the company’s September quarter. Describing it as a solid period, he says the company’s met production guidance and the Tomingley Extension Project is well underway with the second vent rise completed at Roswell. Meanwhile, he says infill drilling occurred underground and surface works commenced for the Paste Plant. Earner adds that drilling at Boda and Kaiser continued through the quarter keeping the company on schedule to release the updated Boda resource in the current quarter.

Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) MD Nic Earner speaks with Proactive after reporting extensive high-grade results from the company’s now complete infill drilling program at the Boda prospect within the Northern Molong porphyry project in central NSW. Extending over five kilometres from Kaiser to Boda, through Boda 2-3 and south to Boda 4, the drilling was designed to infill the inferred Boda mineral resource estimation to a nominal 50-metre grid spacing. Earner says Boda continues to evolve towards its potential as a large, tier one gold-copper resource.

Alkane Resources Managing Director, Nic Earner, provided an update on the Australian gold miner in an interview at the Denver Gold Forum conference. Alkane currently operates the Tomingley Gold Mine in New South Wales, which produced around 70,000 ounces in 2021 at an all-in sustaining-cost under A$1,600/oz.

Looking ahead, Earner expects Tomingley production to increase in 2022 and costs to rise to A$1,750-2,100/oz. This reflects inflationary pressures in Australia on items like power, fuel, steel, and reagents. Earner believes cost increases of around 30% represent a new baseline for the Australian gold sector.

Alkane is using cash flow from Tomingley to advance exploration at its Boda-Kaiser copper-gold porphyry project, also in New South Wales. Boda-Kaiser currently hosts about 15 million ounce gold equivalent resources. Upcoming catalysts include a resource upgrade at Boda expected this quarter and initial resources at Kaiser in Q1 2023.

To fully realize Boda-Kaiser’s value, Alkane is considering strategic partnerships, minority investments, or even a potential split into separate gold and copper-focused entities. Earner believes Alkane’s track record of exploration success and experience in project development position it strongly.

The goal remains growing Tomingley’s production profile while advancing Boda-Kaiser to be construction-ready around 2026. This is expected to transform Alkane into a major dividend-paying gold producer. In the interim, Earner stressed profitable gold production and exploration success as key pillars to attracting investors seeking leverage to the upside.

Nic Earner updates us on the history and latest updates for Alkane Resources and the exploration currently underway to expand the resource and the strength of the company. Technical Director, Ian Chalmers was this year’s winner of the Gavin Thomas Mining Award.

Alkane Resources Ltd (ASX:ALK) MD Nic Earner tells Proactive the company has extended the gold and copper mineralised footprint at its Northern Molong Porphyry Project (NMPP) in Central New South Wales with further significant results from the project’s Boda, Boda Two and Boda Three targets. ALK has been running a drill program over a 3-kilometre mineralised zone spanning NMPP’s Kaiser and the Boda targets to prove up a large tier-one gold and copper camp. Core and reverse circulation (RC) drilling is ongoing at Kaiser, while the program at the Boda targets has been completed.

Alkane Managing Director Nic Earner tells ausbiz about the latest quarterly results and future plans for Tomingley.

Alkane Managing Director Nic Earner tells Proactive the company continues to explore at Tomingley both within its approved mining areas and regionally. He says they uncovered gold at several regional prospects within seven kilometres of the Tomingley processing hub soon after regional drilling kicked off in early 2023.

Alkane managing director Nic Earner tells Proactive that the company’s Tomingley Gold Operations generated more than 70,000 ounces of gold over FY23, meeting the upper end of guidance calculations. The production metrics mean the NSW mine has met or exceeded guidance in every year of operations, while all-in sustaining costs are expected to clock in between A$1,550 and A$1,750 an ounce for the 12-month period. Earner says FY23 was a busy year for Tomingley, characterised by government approval for a project extension and underground development.

Managing Director Nic Earner explains how Alkane manages to consistently meet or exceed production guidance year on year, and outlines future expectations for Tomingley Gold Operations.

This presentation by Alkane Managing Director Nic Earner was filmed at 121 Mining Investment London on 10 May 2023

Alkane Resources Ltd (ASX:ALK) MD Nic Earner talks Proactive through the company’s March quarterly activities. At its flagship Tomingley Gold Operations the company achieved production of 16,641 ounces which met forecasts for the quarter. FY2023 production guidance for Tomingley has now been increased to 65,000 to 73,000 ounces. Also in the period, the company announced an initial inferred mineral resource for Kaiser Deposit of 270 million tonnes grading 0.54 g/t gold equivalent for 4.7 million ounces gold equivalent (480,000 tonnes of copper and 2.05 million ounces of gold).

Alkane Resources Ltd (ASX:ALK) MD Nic Earner tells Proactive the company has entered into an agreement with Sandfire Resources Ltd to acquire two packages of exploration tenements in the Macquarie Arc of New South Wales in return for $1.9 million worth of ALK shares. The two projects will be wholly acquired by Alkane with no underlying royalties or liabilities and are considered to be highly prospective for gold-copper porphyry deposits.

Alkane Resources Limited, Managing Director, Nic Earner and Technical Director, Ian Chalmers provide an investor update covering recent activity including the approval of the extension of the Tomingley gold operation, the release of the first half results for fiscal 2023 and the announcement of the maiden resource estimate for the Kaiser area within the North Molong Porphyry Project.

Alkane Resources Ltd (ASX:ALK) managing director Nic Earner brings Proactive up to speed on a key greenlight for the Tomingley Gold Extension Project. The government’s tick of approval paves the way for the company’s environmental protection licence and mining lease applications, which Earner expects to come to hand mid-this year. Alkane has also struck up a $50 million debt facility with Macquarie and cemented hedging agreements, locking in pricing over 100,000 gold ounces until 2026.