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Alkane Resources (ASX:ALK) calculates maiden inferred resource at San Antonio

Mining
ASX:ALK      MCAP $357.5M
20 April 2020 11:15 (AEST)
Alkane Resources (ASX:ALK) - Managing Director, Nic Earner

Source: Sydney Mining Club

Alkane Resources (ALK) has calculated a maiden inferred resource at the San Antonio Deposit at the Tomingley Gold Project.

The inferred mineral resource now sits at 7.92 million tonnes grading 1.78g/t gold for 453,000 ounces.

As drilling only went to a depth of 250 metres, due to drilling difficulties, this resource will be subject to further drilling to define the extent of mineralisation to the south, the west and at depth.

Alkane now has four deposits that contain more than one million ounces of contained gold.

The other three include the Roswell Deposit, with 7.02 million tonnes at 1.97g/t gold for 445,000 ounces of contained gold; Tomingley Underground, with 1.36 million tonnes at 3.8g/t gold for 165,000 ounces of contained gold; and Peak Hill Underground, with 1.02 million tonnes at 3.29g/t gold for 108,000 ounces of contained gold.

These resources will now be used for mine plans to allow mining operations to begin at the San Antonio and Roswell Deposits.

The NSW State Government has approved the underground exploration at Roswell, where equipment has already been purchased and contractors have been hired.

The Tomingley Gold Project stretches 60 kilometres north-south along the Newell Highway in Central Western NSW and covers an area of 440 square kilometres.

Over the past two years, Alkane has conducted an extensive regional exploration program to define additional resources that have the potential to be mined via open pit or underground operations.

This program has returned broad, shallow, high-grade intercepts that show the potential for project life extension of more than 10 years. It has also shown that open pit and underground mining is possible.

Exploration drilling is now continuing at the prospective gold corridor that lies to the south of San Antonio.

Alkane is up a slight 2.87 per cent in mid-morning trade and shares are selling for 89.5 cents each at 10:24 am AEST.

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