Alkane Resources unearths further thick high-grade gold intersections at Tomingley

Alkane Resources ASX ALK Tomingley gold corridor
Alkane Resources has pulled up 78m at 3.51g/t gold during regional exploration at Tomingley.

Alkane Resources (ASX: ALK) has unearthed further thick high-grade gold intersections at the Tomingley gold project – revealing 1.6km of continuous strike only 4km from the project’s processing plant.

Diamond drilling between the Roswell and San Antonio prospects returned 78m at 3.51 grams per tonne gold from 214m, including 32m at 5.14g/t gold from 260m and 10m at 9.28g/t gold from 264m.

Other notable intercepts were 24m at 3.84g/t gold from 174m, including 9m at 8.09g/t gold from 177m.

Additionally, drilling at the McLeans South prospect has confirmed mineralisation there connects to the northern extensions at Roswell and produced an intercept of 38m at 1.24g/t gold from 240m.

“It is great to have the continuity of high-grade mineralisation confirmed between the Roswell and San Antonio prospects so that we have 1,600m of strike within 4km of the Tomingley gold operations processing plant,” Alkane managing director Nic Earner said.

He added mineralisation at the prospects was open to the north, south and at depth.

“Our resource drilling is commencing this month with the purpose of confirming the potential for substantial mine life extension.”

The drilling program will comprise 60,000m and will include McLeans South as well as Roswell and San Antonio.

Tomingley gold project

Tomingley covers 440 square kilometres in central New South Wales and hosts an open pit operation and a 1 million tonne per annum processing facility.

Mining will be transitioning underground throughout the year, with ongoing regional exploration expected to extend the operation’s life-span.

Last month, Alkane reported it had uncovered “significant” gold at the El Paso prospect with notable intercepts of 12m at 4.99g/t gold from 108m, including 3m at 11.15g/t gold.

El Paso is 7km from the processing plant and is the company’s third near mine discovery at Tomingley.

During the March quarter, Alkane produced 10,669 ounces of gold from Tomingley. The gold sold for an average price of A$1,841/oz and brought in almost $20 million in revenue.

At the end of the quarter, Alkane had $78.8 million in cash, bullion and listed investments.

Prior to market open, Alkane’s share price was at $0.375.

Lorna has more than 10 years' experience as a finance journalist and editor. She has written for numerous industry publications reporting on various sectors, including: resources, energy, construction, biotech, pharma, science and technology, agriculture, and chemicals. Specialising in resources, Lorna has also covered a myriad of small and large cap ASX and dual-listed stocks.