Alkane’s Board has approved the development of the underground mining operations at its Tomingley Gold Operations. Highlights of the development plan approved by the Board include:
- 93,000 ounces of gold recovered over a 40-month development at cash costs estimated to be A$1,100 – $1,200 per ounce.
- Ground support work for the portal will commence late in 2018 with development commencing shortly after in early 2019.
- First ore is expected to be produced from underground in mid-2019 and stockpiled on the surface until processing recommences in the final quarter of 2019.
- Cash outflow to recover first ore is estimated at A$25M. One of the first priorities underground is to establish a drill position to target further extensions along strike and at depth as geologically mineralisation is open under all three open cut pits. The Company’s cash and bullion position at the end of the previous quarter was A$80.0M.