Alkane’s Tomingley gold mine on-stream, on-time and below budget
September 5, 2014 — Tracy Weslosky, Editor-in-Chief and Publisher of InvestorIntel, speaks to Ian Chalmers, the Managing Director for Alkane Resources Ltd. (‘Alkane’, ASX: ALK | OTCQX: ANLKY). Alkane is well known for its rare earth Dubbo Zirconia Project. However, it is less known for its gold mining activities, which are in full swing at the Tomingley gold mine in New South Wales, Australia. Alkane’s gold project came on line last February 14 and it was on time and on budget. Alkane announced the first gold pour at Tomingley with the production of an eight kilo bar, containing about 230 ounces of gold. The Tomingley mine started production on schedule and below budget, said Ian. Alkane will soon be ready to produce at close to, or at, design capacity, generating the cash flow that will help fund, and accelerate the development of, the rare earths operation.
Alkane’s gold project at the Tomingley Mine holds on its own right. Ian says that it is a “medium-size gold operation.” The mine holds three gold deposits with a resource of about 14.3 million tons (with 921,000 ounces of contained gold) and it is expected to increase production from the current 60,000 ounces/year to 70,000 ounces over the next few years. Ian says that he expects the Tomingley gold mine to help generate cash return, “in other words [it will] keep our cash costs as tight as possible to make sure that we get the best return.” Ian says that the gold mine is right now is generating 300-400 dollars an ounce of margin, which is great and if it continues to grow in the next couple of years it will be a really great project for us for the next six to seven years.”
Disclaimer: Alkane Resources is an advertorial member of InvestorIntel.
Get our daily investorintel update
Adrian Nixon began his career as a scientist and is a Chartered Chemist and Member of the Royal Society of Chemistry. As a scientist and ... <Read more about Adrian Nixon>