Alkane Resources set for strong quarter as mining ramps up at Roswell

Alkane Resources set for strong quarter as mining ramps up at Roswell

‌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.

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