Alkane is pleased to announce its plans for the next five years of operation at its Tomingley Gold Operations in the central west of New South Wales. These plans show Tomingley increasing production above 100,000 ounces of gold per annum, with strong resultant cash flow.
Key points
- Planned production of 455,000 to 505,000 ounces of gold over the next five financial years, sourced from underground and open cut mining.
- AISC over the five-year period to average A$1,900/oz to $2,100/oz with costs to reduce over time as the development capital requirement decreases.
- Relocation of the Newell Highway and expansion of the existing processing plant to a nominal 1.5 million tonnes per annum rate to occur through 2025.
- ~$89m in capital for highway relocation and the expansion, in addition to current capital expenditure of ~$43m, expected to be funded from cashflow and debt. A final investment decision will be made in early calendar 2025.
- Resources at Tomingley extend beyond this five-year plan and remain open at depth and along strike at the Caloma, Caloma Two, Roswell and San Antonio deposits.
Alkane Managing Director Nic Earner said: “Tomingley has a big future ahead of it. Our five-year plan details the capital program that develops the open cut operations, expands the plant and moves the operation to deliver above 100,000 ounces of gold per year.
“The underground at Roswell has begun production, and we expect to produce over 70,000 ounces of gold next year. The paste plant and the flotation / regrind circuit are under construction with commissioning expected later this year.
“The deposits across Tomingley are open at depth and along strike and our known resources extend beyond this immediate five-year plan. We’re looking forward to delivering on this plan.”
Alkane investor briefing webinar
On 25 June 2024, Alkane Managing Director Nic Earner provide a live investor update on the five-year plan, followed by an interactive Q&A session.