Alkane Resources (ASX: ALK) has unveiled a maiden inferred gold resource for the Roswell deposit within its Tomingley gold project in New South Wales.
The gold producer today announced an inferred resource of 7.02 million tonnes grading 1.97 grams per tonne of gold (with a 0.5g/t gold cut-off) for 445,000 ounces at Roswell, located 3km south of the operating Tomingley mine and processing facility.
The estimate was modelled from recent drilling completed at Roswell as part of an ongoing 60,000m resource definition drilling program aimed at providing additional ore feed for the mine.
The drilling program is also targeting the San Antonio prospect, where an initial inferred resource is anticipated in March.
More than 34,000m of the program has been completed to date, Alkane reported.
At Roswell, further drilling is underway to reduce the drill hole spacing and convert the inferred resources to indicated and measured status. Drilling is also continuing in the prospective corridor to the south of Roswell.
Alkane’s Tomingley gold project covers 440sq km in NSW’s central west region. It contains the currently operating Tomingley open pit mine, which is transitioning to underground, and a processing facility with a 1-million-tonne-per-annum capacity.
According to Alkane, scope exists to expand Roswell’s resources at depth with a particular focus on the high-grade zones in the southern part of the deposit.
Other exploration targets include the poorly constrained northern zone, where mineralisation is open to the west, and at depth where Alkane said grade and tonnage potential is “improving”.
In addition, some targets will be tested from underground as the NSW state government approval has been sought for an underground exploration drive to the Roswell deposit.
In today’s announcement, Alkane said equipment has been purchased, personnel recruited and land acquired in order to facilitate rapid development on approval.
Alkane shares were up 12.59% to $0.76 on the news by early afternoon trade.