Alkane Resources Ltd. said June 3 that it re-estimated the ore reserves and gold resources at the Tomingley gold operations in New South Wales, Australia, following the core drilling program in 2017 and using a 2.4 g/t cutoff.
The updated ore reserve outlined 74,000 ounces of gold contained in 732,000 tonnes grading 3.1 g/t of gold in the proven and probable categories.
Total underground resources were estimated at 1.45 million tonnes grading 3.7 g/t of gold containing 175,000 ounces of gold in the combined measured, indicated and inferred categories.
A maiden ore reserve in 2015 outlined 524,400 tonnes grading 3.66 g/t of gold for 61,600 ounces, while the resource estimate in 2017 was 912,000 tonnes grading 4.2 g/t of gold for 122,000 contained ounces.
An independent study determined that the deposits within Tomingley can be viably mined using standard long hole stoping with rib pillars and long hole stoping using cemented rock fill via decline access from the Wyoming One and Caloma pits.
The base case development would recover 99,000 ounces of gold at cash costs of between A$1,150/oz and A$1,250/oz over a 40-month development and mining period, resulting in revenue of A$159 million using a gold price of A$1,600/oz.
