Alkane goes for gold with $89m Tomingley expansion

Alkane reports that all-in sustaining costs over the five-year period will average $1,900/oz to $2,100/oz with costs to reduce over time as the development capital requirement decreases.
Alkane reports that all-in sustaining costs over the five-year period will average $1,900/oz to $2,100/oz with costs to reduce over time as the development capital requirement decreases.

Alkane Resources (ASX: ALK) announced increased gold production above 100,000ozpa with strong resultant cash flow in a five-year plan for its Tomingley gold operations in NSW.

Production will be sourced from underground and open cut mining, with 455,000 to 505,000oz of gold expected over the next five financial years.

This increase follows plans to realign Newell Highway and expand the existing processing plant to a nominal 1.5mtpa rate through 2025.

Alkane will fund the $89m realignment and expansion through cashflow and debt with a final investment decision expected in early 2025.

Alkane managing director Nic Earner says Alkane is looking forward to delivering over the next five years.

“Tomingley has a big future ahead of it. Our five-year plan details the capital program that develops the open cut operations, expands the plant and moves the operation to deliver above 100,000ozpa of gold,” he said.

“The underground at Roswell has begun production, and we expect to produce over 70,000oz of gold next year. The paste plant and the flotation/regrind circuit are under construction with commissioning expected later this year.

“The deposits across Tomingley are open at depth and along strike and our known resources extend beyond this immediate five-year plan. We’re looking forward to delivering on this plan.”