It’s a golden transformation

In the quiet, expansive land of central west NSW, Tomingley gold operations is gearing up for a golden transformation.

Alkane Resources (ASX: ALK), the company behind the mine’s driving force, is taking bold steps to secure its future through the ambitious Tomingley Gold Extension Project – a plan that promises to enhance efficiency, extend the mine’s life, and uncover even more untapped potential beneath the soil.

The extension was approved by the NSW Planning Minister on 21 February 2023, and Alkane has development consent until end-2032 – doubling the life of the mine until 2031 and producing an estimated 745,000oz of gold.

Extending operations

Alkane is extending mining operations at Tomingley to the San Antonio and Roswell (SAR) resources immediately south of the current mine.

This $30m+ project involves development of an underground mine at Roswell and one large open cut.

A new bypass section for Newell Highway is also being constructed as the SAR deposits are located underneath it and the existing Kyalite Road will be realigned as it runs through the proposed SAR open cut.

Overall, major works include the construction of three waste rock emplacements, a haulage road underpass beneath Newell Highway, a ROM pad, a processing plant, a crushing and grinding circuit, a carbon-in-leach processing plant, site offices and associated infrastructure.

These projects are expected to take between six to nine months and have been planned in close consultation with Transport for NSW as well as Narromine Shire Council, residents and road users.

The SAR open cut will combine the adjacent San Antonio and Roswell deposits with up to three sub pits, and the open cut will be mined in stages to minimise biodiversity disturbance and to also allow progressive rehabilitation.

It’s worth noting that the underground section at the Roswell deposit started in April 2024.

But the Tomingley Gold Extension Project is more than just a boost for the mine – it’s a lifeline for the local economy.

By expanding operations, Alkane Resources is ensuring the creation and preservation of jobs across the region, providing stability for workers and their families.

The ripple effect of this expansion strengthens the economic fabric of surrounding areas, fostering growth and resilience for years to come.

Processing plant

Significant upgrades are underway at the Tomingley processing plant to enhance its capacity, with modifications set to enable a maximum production rate of 1.75mtpa

Alongside these upgrades, the development of a state-of-the-art paste plant is progressing steadily, with the new facility supporting paste filling of the underground stopes at the Roswell deposit.

Additionally, the project includes planned wall-lifts on the second residue storage facility, designed to provide sufficient capacity for mine residue storage through to the end of 2032.

It has been reported that the upgrades will see an increase in processing recoveries of about 7% once commissioned.

Both the paste plant and the process plant remain on schedule to be commissioned in Q4 CY24.

Operations

Reported in its Quarterly Activities Report to 30 September 2024, Tomingley gold mine hit its quarterly targets with 18,418oz of gold produced and $62.3m in sales revenue at an impressive average price of $3,422/oz.

Operating cash flow reached $19.2m, supported by cash costs of $1,840/oz and an AISC of $2,182/oz.

FY25 guidance remains steady at 70,000–80,000oz, with higher AISC reflecting one-off costs for decline development.

Early grade reconciliations from the Roswell deposit have exceeded expectations, delivering a 14% positive variance, reinforcing confidence in the mine’s future performance.

Alkane managing director Nic Earner says that it is another quarter of solid production performance that has been leveraged by the strong gold price.

“We remain on track with our capital expansion work, with both the paste plant and processing upgrades scheduled for commissioning in the December quarter of 2024,” he said.

“We’ve passed the point of peak expenditure in the current phase of the Tomingley expansion as we look to continue to grow production through commissioning of the new plants.

“We will then be focusing on the Newell Highway diversion and maintaining a high level of operational excellence to maximise the value of our increased production capacity.”

Alkane’s developments mark a pivotal phase in securing the long-term future of the Tomingley gold mine.