Alkane Resources reports high-grade gold during regional drilling at Tomingley

Alkane Resources ASX ALK high-grade gold regional drilling Tomingley
At Roswell, Alkane Resources intercepted 10m at 32.1g/t gold from 199m, including 2m at 139.5g/t gold from 199m.

Alkane Resources (ASX: ALK) has returned up to 139.5 grams per tonne during resource definition drilling at the Roswell prospect within its Tomingley gold project in New South Wales.

The company is carrying out a 60,000m drilling campaign across Roswell and San Antonia prospects at the project, which lie to the immediate south of the mine and processing plant.

To-date 28,868m has been completed with this latest batch of results including assays from 10,000m of drilling.

At Roswell, notable intersections were 10m at 32.1g/t gold from 199m, including 2m at 139.5g/t gold from 199m; and 30m at 3.45g/t gold from 180m, including 3m at 28.3g/t gold from 183m.

Over at San Antonio highlight results were 9m at 4.06g/t gold from 42m, including 3m at 5.98g/t gold from 66m; and 28m at 2.94g/t gold from 215m, including 2m at 10.51g/t gold from 231m.

Tomingley gold project

Alkane is undertaking regional exploration at the project with the aim of firming up ore feed to extend operational life at the Tomingley gold mine.

Tomingley currently has total ore reserves of 1.41 million tonnes at 2g/t gold for 89,000 ounces, with resources of 6.44Mt at 2g/t gold for 407,000oz gold.

Mining has been underway at Tomingley since the start of 2014.

During the September quarter 7,497oz of gold was generated from operations at Tomingley with all in sustaining costs of AS$1,268/oz.

Alkane was able to take advantage of the prevailing high gold price and sold 6,997oz for the period for an average price of A$2,151/oz.

This generated $15 million in revenue for the miner.

Production guidance for FY 2020 has been estimated between 30,000oz and 35,000oz gold.

Regional exploration for more reserves is targeting prospects within 10km of the mine and its existing infrastructure.

Alkane has developed an exploration target of 15.8-23.8Mt at 1.7-2.2g/t gold. This includes both underground and open pit potential resources.

A maiden resource for the Roswell prospect is due later this month.