Tomingley Gold Operations (Tomingley)
- Gold production of 15,855oz met forecast for the quarter, with site operating cash costs at A$1,322/oz and AISC of A$2,156/oz.
- Gold sales for the quarter of 16,090oz for revenue of A$46.6m at an average price of A$2,897/oz.
- FY2024 guidance for Tomingley remains unchanged at 60,000oz to 65,000oz production at an AISC of $A1,750/oz to $2,100/oz.
Tomingley Gold Extension Project (TGEP)
- In July 2023 the Mining Lease that includes the TGEP was approved.
- In early October 2023, post quarter end, the regulator accepted the Construction Environmental Management plan. This enabled physical construction activity, such as earthworks for the paste plant and infrastructure, to commence in the new mining area.
- The second ventilation rise at Roswell has been completed.
- Extensive infill drilling of the Roswell orebody continues.
Exploration
- Assay results were received from diamond core and RC drilling at Boda and Boda Two-Three intersecting zones of extensive gold-copper porphyry mineralisation during the quarter. Significant intercepts included:
| BOD121 | 1,601.9m grading 0.51g/t AuEq* (0.30g/t Au, 0.15% Cu) from 256m to EOH |
| incl | 28m grading 1.51g/t AuEq (0.97g/t Au, 0.38% Cu) from 323m |
| incl | 4m grading 4.10g/t AuEq (2.78g/t Au, 0.93% Cu) from 336m |
| also | 45m grading 1.32g/t AuEq (1.01g/t Au, 0.22% Cu) from 464m |
| incl | 5m grading 3.50g/t AuEq (3.08g/t Au, 0.30% Cu) from 464m |
| BOD128 | 113m grading 1.21g/t AuEq (0.57g/t Au, 0.45% Cu) from surface |
| incl | 24m grading 2.47g/t AuEq (1.17g/t Au, 0.91% Cu) from 70m |
| incl | 3m grading 6.59g/t AuEq (2.78g/t Au, 2.67% Cu) from 85m |
| BOD094 | 91.8m grading 0.62g/t AuEq (0.35g/t Au, 0.19% Cu) from 1215m |
| incl | 58m grading 2.30g/t AuEq (1.28g/t Au, 0.74% Cu) from 1223m |
| incl | 12m grading 4.78g/t AuEq (3.37g/t Au, 0.98% Cu) from 1265m |
| also | 21m grading 1.02g/t AuEq (0.58g/t Au, 0.31% Cu) from 1285m |
| BOD122 | 16m grading 1.46g/t AuEq (1.45g/t Au, 0.01% Cu) from 45m |
| and | 542m grading 0.53g/t AuEq (0.24g/t Au, 0.21% Cu) from 514m |
| incl | 106m grading 0.94g/t AuEq (0.31g/t Au, 0.46% Cu) from 747m |
| also | 20m grading 1.09g/t AuEq (0.54g/t Au, 0.40% Cu) from 1026m |
- Two drill rigs are in operation at the Kaiser deposit comprising of one RC and one diamond core rig. These rigs are doing infill and extensional drilling to allow an update in the mineral resource estimate. The updated mineral resource estimation for Boda will be completed in the current quarter, Q4 2023, and for Kaiser in Q1 2024.
Corporate
- Cash, bullion and listed investments position totalled A$94.4M.
- Significant investments made during the quarter in both growth and expansion at Tomingley (A$16.2m) and exploration (A$8.1m).
- Shareholding in ASX listed gold producer Calidus Resources Ltd (ASX:CAI) represents ~9.0% ownership of issued capital in Calidus at the end of the June quarter. Sale of Genesis Minerals Ltd (ASX: GMD) shareholding during the quarter yielded A$11.9m in cash.
Alkane Managing Director, Nic Earner, said: “We’ve had a solid start to the year at Tomingley, meeting our production guidance. The Tomingley Extension Project is well underway with the second vent rise completed at Roswell, infill drilling occurring underground and surface works commenced for the Paste Plant.
“The drilling at Boda and Kaiser continued through the quarter, keeping us on schedule to release the updated Boda resource in the current quarter.”
*The equivalent calculation formula used in ASX Announcement 20 June 2023 is AuEq(g/t) = Au(g/t) + Cu%/100*31.1035*copper price($/t)/gold price($/oz). The prices used to calculate AuEq are based on 6-month averages of US$1,930/oz gold and US$8,500/t copper, and A$:US$0.67. Recoveries are assumed equal for Au and Cu at 85% from preliminary metallurgical studies. Alkane considers the elements included in the metal equivalents calculation have a reasonable potential to be recovered and sold.