08-July-2021:  Tomingley Exceeds FY2021 Production Guidance

Alkane is pleased to announce its Tomingley Gold Operations in central west New South Wales has exceeded its FY2021 production guidance of 50,000oz to 55,000oz. This guidance was upgraded in April from original full year guidance of 45,000oz to 50,000oz. The exceedance is primarily due to the grade of material processed being higher than forecast.

Key points

• Tomingley Gold Operations has exceeded FY2021 production guidance, which was upgraded after the March 2021 quarter.
• FY2021 gold production was 56,958oz (guidance 50,000oz to 55,000oz).
• FY2021 preliminary AISC was $1,320/oz (guidance $1,400/oz to $1,550/oz).
• Group unaudited cash, bullion and listed investments position at 30 June 2021 totalled A$73.9M.
• FY2022 production guidance for Tomingley is 55,000oz to 60,000oz at an AISC of $A1,450/oz to $1,600/oz.

Tomingley produced 56,958oz of gold for the 12 months to 30 June 2021, with preliminary all in sustaining costs (AISC) of $1,320/oz, which fell below the Company’s cost guidance of $1,400/oz to $1,550/oz, for the same period. The strong 12-month performance at Tomingley has coincided with the finalisation and release of the updated Life Of Mine plan (ASX Announcement 3 June 2021) that extends the Tomingley Gold Operations to at least 2031.

The Group’s unaudited cash, bullion and listed investments position at 30 June 2021 totalled A$73.9M, comprising $19.0M cash, $7.7M of bullion in hand and $47.2M of listed investments. Alkane also has $20M in undrawn credit approved facilities.

Alkane’s guidance for FY2022 gold production from Tomingley is 55,000oz to 60,000oz, at an AISC of A$1,450/oz to A$1,600/oz.

Alkane Managing Director, Nic Earner, said: “Tomingley continues to meet or exceed our expectations, demonstrating why it is a great asset managed by a highly professional and committed Operations team. With an updated mine plan that extends the life of Tomingley to at least 2031, at increased production rates, we remain buoyant about the longer-term prospects both at Tomingley and at our Boda exploration tenements. Alkane’s Board and management acknowledge and thank the teams at Tomingley and in Exploration for their strong and continued safety, production and discovery performance.”

--- ends ---

That (above) was the content of the email I received from ALK this morning.  Click on the link at the top for the ASX announcement.  Disclosure:  I do not hold ALK in RL, however they are one of the smaller positions in my Strawman.com virtual portfolio, and they're up +115.78% so far.  If I had more funds to invest in RL, I would certainly hold this one.

14-May-2021:  Boda Porphyry Update from Nic Earner and Ian Chalmers from ALK

21-Jan-2021:  Ord Minnett: Alkane Resources: Ain’t she Boda-ful (initiation of coverage)

Analysts:

1. Dylan Kelly, Senior Research Analyst, 02 8216 6417, [email protected]
2. Jack Lynch, Research Associate, (02) 8216 6368, [email protected]

• Last Price: A$0.81 ($0.85 on 22-Jan-2021)
• Target Price: A$1.30
• Recommendation: Buy
• Risk: Higher
• Sector: Gold
• ASX Code: ALK
• 52 Week Range ($): 0.50 - 1.50
• Market Cap ($m): 479.3
• Shares Outstanding (m): 595.4
• Av Daily Turnover ($m): 2.2
• 3 Month Total Return (%): -40.6 (that's negative 40.6%)
• 12 Month Total Return (%): +17.5
• Benchmark 12 Month Return (%): 13.4
• NTA FY21E (¢ per share): 31.2
• Net Cash FY21E ($m): 27.3

--- click on the link at the top for the full OM report on ALK ---

[I do not hold ALK currently.  I have previously.  They remain on my Strawman.com scorecard (as one of my smaller positions) with a 50%+ gain, despite their SP falling by over 40% in the past 3 months.]

11-Nov-2020:  Significant Expansion to Mineralisation at Boda - Amended

04-Nov-2020:  Updated Roswell Resource lifts by 50% to 660,000oz

• The Global Mineral Resource (Indicated and Inferred) for the Roswell Deposit has been updated after an additional 29,000 metres of drilling, and now stands at:

                           10.1 million tonnes grading 2.04g/t gold (660,000oz)

• Total contained ounces have increased 50% from the previously announced January 2020 Inferred Mineral Resource.
• The resource remains open for extensions at depth, with particular focus on the high-grade zones in southern Roswell, and to the west within the poorly constrained western monzodiorite.
• Drilling is continuing in the prospective corridor to the south of Roswell and an updated Mineral Resource for the San Antonio deposit is anticipated in December 2020.
• The resource definition drilling program at the Roswell and San Antonio prospects is ongoing as part of an extensive regional exploration program aimed at providing future additional ore feed, either at surface or underground, for Alkane’s operating Tomingley Gold Operations (TGO). The Roswell Deposit is located 3km south of the TGO mine and processing facility.
• An underground exploration drive from Tomingley Gold Operations to the Roswell Deposit is under development. Land acquisitions have taken place and planning is underway to facilitate rapid mine development on approval.

Alkane Resources Managing Director, Nic Earner, said:

“The Roswell Resource represents the most attractive zone of broad mineralisation identified so far in the Tomingley region. This deposit, together with San Antonio, and good reserve replacement at Tomingley underground, is showing a clear pathway to achieving a further 10+ year mine life for Tomingley.

Now that resource drilling is complete at Roswell, and nearing completion at San Antonio, consultation, permitting and licencing to facilitate mining is being expedited with the relevant stakeholders and NSW government departments.”

--- click on the link above for the full announcement ---

[I do not currently hold ALK shares, but they are on my Strawman.com scorecard.]

Also, recently:  28-Oct-2020:  Final Assays Received for Infill Resource Drilling Roswell

And:  21-Oct-2020:  Quarterly Activities Report

These links are from the announcements page on the Alkane Resources website - see here:  https://www.alkane.com.au/media-research/asx-announcements/

28-Oct-2020:  Final Assays Received for Infill Resource Drilling at Roswell

The assays are very positive, but the one that stood out the most for me was RWRC379D which returned 45.0 metres grading 6.14g/t Au (gold) from 380 metres; including 1.0 metre grading 102g/t Au from 391 metres.  Yep, that's one hundred and two grams of gold per tonne of ore...  I don't currently hold ALK shares, but they are on my Strawman.com scorecard, and are currently showing a +122.86% return, before today, and they're up today of course.  It's another company that I WOULD hold if I had more capital to invest in real life.  You can't pat ALL the fluffy dogs...

21-Oct-2020:  Alkane Resources Quarterly Activities Report

ALK are on my Strawman.com scorecard - currently with a circa +150% gain - however I sold my real life ALK shares some time ago.  In an email I recently received from Goldnerds.com, which I subscribe to (for access to their brilliant spreadsheet of all ASX-listed companies in the gold space), they provided a number of graphs comparing our Australian-listed gold producers to each other, and ALK had - by far - the highest enterprise value per reserve ounce (@ A$4,485/ounce), the highest market capitalisation per production ounce (@ A$15,433/ounce, based on ounces produced in the last 12 months), and also had the highest "Total Cost of Ownership", which is in-ground cost plus mining cost (EV plus outstanding construction costs per mineable AuEq ounce, plus average AISC for the last 12 months) - @ A$2,219/ounce of gold.  Companies like DEG, who are even more expensive, were not included, because they are not yet producers.  What this highlights is that ALK are clearly being priced on future potential rather than what they have right now and/or what they have produced in the past 12 months.  That's fine, if they live up to that potential.  However, if they don't, there is significant downside (for their share price) from these levels - I would expect.

Alkane's Corporate Presentation at the Beaver Creek Summit on 17 September 2020 is now available for download.  

[I hold ALK shares.]

04-Sep-2020:  S&P DJI Announces September 2020 Quarterly Rebalance

Entering the ASX300 index as from 21-Sep-2020:  ALK, CMM, DDR, DEG, EVT, REH & TPW (the following companies are being removed:  FAR, IGL, JHC, MYR, REG & SGF - all out).

Entering the ASX200:  AIA, AUB, RMS, WGX & Z1P.  (Leaving:  MMS, NHC, OML, ORE & SXL all out)

Entering the ASX100:  APX & FPH.  (Out:  CIM & VUK).

Entering the ASX20:  COL & FMG.  (Out:  SCG & SUN).

No Change to the ASX50 or to the ASX All Australian 50.

S&P/ASX All Australian 200 Index:  In:  KGN & Z1P.  Out:  HSN & JIN.

S&P/ASX All Technology Index:  Additions:  BRN, DDR, EVS, M7T, NVX, SPT, SZL, WSP.

In summary, the up-and-coming companies are mostly technology, biotechs, BNPL/fintechs, gold companies or online retailers.  And an airport (AIA), an iron ore miner (FMG), a large traditional retailer (COL) and a healthcare company (FPH). 

28-Aug-2020:  High Grade Depth Extensions Identified at Roswell

High Grade Depth Extensions Identified at Roswell Below Current Inferred Resource

Alkane Resources Managing Director, Nic Earner, said: “It is great to see these significant high-grade intercepts below the existing Inferred Resource at Roswell. These show the potential for an underground mine that continues to extend at depth, with impressive grades continuing.

“Our community, stakeholder and regulatory engagement on developing Roswell and San Antonio is well underway and will continue as rapidly as practicable. The next big step is updating the Inferred Resource at Roswell to Indicated, and we’re expecting to get this completed in October.

“The progress being made at Roswell and San Antonio further demonstrates our objective of creating shareholder value by extending the production mine life at Tomingley, in combination with strategic exploration and acquisition.”

--- click on the link above for the full announcement ---

[I hold ALK shares]. 

For some reason this has not uploaded yet to Commsec despite being added to the ASX announcements platform at 8:41am this morning.  It is available on NABtrade, and on the ASX site however, and I guess Commsec will add it some time over the weekend.

These are not bonanza grades but they're still good grades of gold and importantly they've been found below the existing Inferred Resource at Roswell, so it will extend the Inferred Resource (they expect to complete this update in October) - meaning that they will have significantly more gold to mine there.  This is an example of where the results actually DO match the hype, the potential, and the expectations.  We expect them to keep finding more gold, and they actually do.  It doesn't always work out this way, but it's good when it does.

25-Aug-2020:  Annual Financial Results, App 4E and FY20 Statutory Accounts

Headline numbers look poor from their TGO (Tomingley Gold Operation) - with everything down except the gold price.  However, the investment thesis for ALK is all about their new Boda discovery which is the subject of an extensive drilling campaign throughout CY2020 - so we still don't know exactly how much gold they have there.  They have other tenements that contain potential commercial deposits of gold as well.

The Tomingley plant was shut down for an extended maintenance period from late December (2019) through to February (2020), which impacted production.  They have also transitioned from an OP (open pit) operation to a UG (underground) operation there, with low-grade stockpiled ore processed in the first half while underground mining development continued to progress.  Those are the main reasons why they produced less gold in FY20 than in FY19.

ALK's NTA has increased from 21.73 to 26.28 cps during FY20.  At 30-June-2020, ALK's cash+bullion+listed investments totalled $98.4m with $18.5m of that transferred to ASM when they demerged and listed in late July.

I hold ALK shares, but it's a pretty small position, as they are a small gold producer with plenty of upside, but also plenty of associated risk.  One of my main risk-management tools is appropriate position sizing, meaning that low risk companies can be larger positions, and high risk companies need to be smaller positions within my potfolios.

ALK are cashed up, so that's not a big risk, and they are producing gold profitably - with FY21 production guidance of 45 - 50 koz at an AISC of A$1,450 to $1,600/oz.  The mid-point of their AISC guidance is $1,525/oz, placing them at position #15 within my list of the 25 gold producing companies - in order of AISC - from lowest to highest, meaning that based on current guidance, ALK will have the 15th lowest costs of the 25 current Australian-headquartered pure-play gold producers we have on the ASX to choose from.

The main risk is that they don't live up to the hype - or the promise - that they don't find as much gold as the market expects during their current and future drilling programs.  That's where the main risk lies in my opinion.  And that's why they remain a relatively small position for me at this point.

16-7-2020:  Additional Significant Results from Infill Resource Drilling

[I hold ALK shares]

15-7-2020:  Quarterly Activities Report

Also:  14-7-2020:  Presentation to Noosa Mining Virtual Conference

[I hold ALK shares]

13-July-2020:  JV PRODUCES HIGH QUALITY NEODYMIUM METAL ALLOY

ASM JV PRODUCES HIGH QUALITY NEODYMIUM METAL ALLOY

Highlights:

• Successful laboratory production of ~ 1kg of neodymium metal alloy.
• Assaying confirms an intermediate neodymium (87%) alloy ingot.
• Electrorefining to produce a 99.9% Nd metal is anticipated by the end of July.
• Commercial Pilot Plant production of larger quantities of neodymium and praseodymium metal alloys expected to be complete at the end of July 2020.
• Metallisation process targets 45% less energy for rare earth metal production than the current industrial process.

Australian Strategic Materials’ (ASM) Korean research and development partner, ZironTech has completed its preliminary work on the metallisation of neodymium oxide feed producing approximately 1kg of neodymium metal alloy in the laboratory from its patented reduction process in South Korea. The JV is targeting 45% less energy use in its rare earth metallisation process than the current industrial process.

This is the first stage of the production of critical metals used in a range of sustainable technologies and new manufacturing industries such as renewable energy and electric vehicle production.

ASM, with its Korean JV partner, will continue to progress the innovative low emission, high purity metal refining technology to produce metals of zirconium, titanium, rare earths and other critical materials for the renewable energy, speciality alloys and permanent magnet markets.

As noted previously, the commissioning of the electrorefining section of the pilot plant, which will produce high purity metal, is planned in July 2020. Further pilot plant runs are planned to produce neodymium, praseodymium, and other rare earths in metallic form.

Australian Strategic Materials Managing Director, David Woodall said:

“This is a major milestone in ASM’s integrated strategy that includes clean metal production for all products from the development of the Dubbo Project in Central West NSW. This integration of metal production into ASM’s business is consistent with the Australian Government’s objective of adding value within Australia, while ensuring supply security and stability of these critical materials to global and domestic Australian manufacturing sectors.”

ASM and its JV partner continue to progress the second phase of its metallisation strategy focussing on the production of zirconium metal in July 2020, focused on delivering significantly improved economics of its Dubbo project as well as giving it an involvement in the wider commercialisation of a breakthrough technology.

--- ENDS ---

About Australian Strategic Materials – www.asm-au.com

Established as the holding company for the Dubbo Project, ASM is focused on producing specialty metals and oxides for advanced technologies. ASM is a wholly-owned subsidiary of Alkane Resources Ltd. As advised to the ASX on 17 June 2020, Alkane is holding an extraordinary general meeting of shareholders to consider demerging ASM and establishing it as a stand-alone, ASX listed company. For further information on the proposed Demerger and EGM please refer to http://www.alkane.com.au/demerger/.

Located in central-western NSW, ASM’s cornerstone Dubbo Project has a long-term resource of zirconium, rare earths, niobium and hafnium– a globally significant source of these critical materials for a diverse range of emerging and sustainable technologies.

In a joint venture with South Korea’s Zirconium Technology Corporation (ZironTech), ASM is advancing oxide separation and metallisation technologies to create a range of value-added materials from marketavailable precursors and, ultimately, Dubbo Project outputs. Construction of ASM’s pilot plant in South Korea has been completed with commissioning of the plant for each metal planned to be produced from the Dubbo Project with production of larger quantities of clean metals will commence in Q3 2020.

[I hold a small ALK position]

7-7-2020:  Tomingley Gold Operations Meets FY2020 Guidance

• Tomingley Gold Operations has met FY2020 guidance, which was upgraded after the September 2019 quarter.
• FY2020 gold production was 33,507 oz (guidance 30,000 oz to 35,000 oz).
• FY2020 preliminary AISC was $1379/oz (guidance $1,250/oz to $1,400/oz).
• Group unaudited cash, bullion and listed investments position at 30 June 2020 totalled A$98.4M.
• The updated Tomingley Gold Operations mine plan is undergoing final review and approval and will be released along with FY2021 guidance.

Alkane Resources Ltd (ALK) is pleased to announce its Tomingley Gold Operations in central west New South Wales have met its FY2020 production guidance of between 30,000 oz to 35,000 oz.

The Operations produced 33,507 oz of gold for the 12 months to 30 June 2020 with preliminary all in sustaining costs (AISC) of $1357/oz produced, which fell within cost guidance ($1,250/oz to $1,400/oz) for the same period. The strong 12 month performance at Tomingley has coincided with a 25 per cent appreciation in the gold price and the Company’s progress towards a demerger of Australian Strategic Materials Limited (ASM) to become a separate ASX listing, allowing Alkane to focus exclusively on its gold projects.

The Group’s unaudited cash, bullion and listed investments position at 30 June 2020 totalled A$98.4M, comprising $66.9M cash, $5.8M of bullion in hand and $25.7M of listed investments.

Alkane Managing Director, Nic Earner, said:

“The team at Tomingley Gold Operations continues to perform very well, consistently meeting or exceeding guidance. With an updated mine plan soon to be released and the great potential being shown very close to the mine, through our exploration at Roswell and San Antonio, we remain buoyant about the longer-term prospects at Tomingley. The Board and management acknowledge and thank the team at Tomingley for their strong and continued safety and production performance.”

ABOUT ALKANE - www.alkane.com.au - ASX: ALK

Alkane is a gold production company with a multi-commodity exploration and development portfolio. Alkane’s projects are predominantly in the Central West region of NSW, but extend throughout Australia through investments in other gold exploration and mining companies.

Alkane’s gold production is from the Tomingley Gold Operations (TGO) which has been operating since early 2014 and it’s most advanced gold exploration projects are in the 100% Alkane owned tenement area between TGO and Peak Hill and have the potential for sourcing additional ore for TGO.

Alkane has other 100% owned exploration tenements in the Central West NSW prospective for gold and copper. The recently announced significant porphyry gold-copper mineralisation intersected at Boda is an example of this potential.

Alkane’s largest non-gold project is the Dubbo Project (DP), a large in-ground resource of zirconium, hafnium, niobium, yttrium and rare earth elements. It is a potential strategic and independent supply of critical minerals for a range of sustainable technologies and future industries. The DP is development ready, subject to financing, with the mineral deposit and surrounding land acquired and all major State and Federal approvals in place. The DP is part of Alkane subsidiary Australian Strategic Materials, which will demerge with Alkane subject to shareholder approval.

[I don't currently hold ALK, but they're on my watchlist, and they're also on my Strawman.com scorecard, and doing very well there too, having almost doubled since I added them]

22-June-2020:  High Grades Confirm Continuity at Roswell and San Antonio

08-May-2020:  Approval Received for Underground Exploration Drive

The NSW Government Resources Regulator has granted approval for Alkane Resources Limited (ASX: ALK) to develop an exploration drive from its existing Wyoming One underground operations, to the Roswell and San Antonio deposits, approximately four kilometres to the south of the mine.

This is an important milestone towards a future potential underground mine at Roswell and San Antonio that could be developed independently of an open cut operation. The exploration drive will be sized such that it could also accommodate production in the future.

Managing Director, Nic Earner, said: “Alkane has the equipment purchased, personnel recruited and land acquired to allow this development to proceed and we will now incorporate the timing of the drive development into the Tomingley Gold Operations’ budget schedules, as well as our regional exploration plans.”

“Given the prospectivity of the region around our existing operations, this approval provides Alkane with all the exploration and, in time, production options, to extend the life of mine at Tomingley well into the future.”

Tomingley Gold Project

Alkane Resources Ltd 100%

The Tomingley Gold Project (TGP) covers an area of approximately 440km2 stretching 60 kilometres north-south along the Newell Highway from Tomingley in the north, through Peak Hill and almost to Parkes in the south. The TGP contains Alkane’s operating Tomingley Gold Operations (TGO), an open pit mine with a 1Mtpa processing facility that is transitioning to underground.

Over the past two years Alkane has conducted an extensive regional exploration program with the objective of defining additional resources that have the potential to be mined either via open pit or underground operations and fed to the TGO processing facility.

The exploration program has yielded broad, shallow, high-grade intercepts that demonstrate potential for material project life extension in excess of 10 years, and show that a return to open pit mining and/or underground extension is possible with appropriate resource confirmation, landholder agreement and regulatory approvals.

--- click on link for more ---

29 Apr-2020:  Quarterly Activities Report

Tomingley Gold Operations

• Now producing steady state stoped ore from the underground.
• Gold production on forecast at 5,723 ounces.
• Site operating cash costs were A$995/ounce with AISC(*1) of A$1,346/ounce.
• Gold sales of 3,864 ounces for revenue of A$8.2M at an average price of A$2,126/ounce.
• Guidance for FY20 is unchanged at 30,000 to 35,000 ounces of gold at an AISC(*1) of A$1,250 to A$1,400 per ounce.
• The Company is expediting the move to mine development of the Roswell and San Antonio prospects. 

Exploration

• Resource drilling continued at the Roswell and San Antonio prospects.
• Drilling completed at the San Antonio Deposit.  Modelling (see ASX announcement 20 April 2020 for detail) demonstrates an Inferred Mineral Resource (using a 0.5g/t gold cut-off) of:
  • 7.92 million tonnes grading 1.78g/t gold (453,000oz).
• Resources at Tomingley Gold Operations (TGO) and the exploration tenements to the immediate south including the San Antonio Deposit are now in excess of one million ounces.
• Results from the follow up core program (for five holes ~5,000m) at Boda were received during the quarter and included the spectacular KSDD007 (ASX announcement 23 March 2020):
  • KSDD007    1,167m @ 0.55g/t gold, 0.25% copper from 75 metres
    • incl 502m @ 1.00g/t gold, 0.45% copper from 768 metres
    • incl 376m @ 1.30g/t gold, 0.56% copper from 768 metres
    • incl 96.8m @ 3.97g/t gold, 1.52% copper from 768 metres

Corporate

• Cash, bullion and listed investments position totalled A$81.9M.
• Shareholdings remained 13.0% of ASX listed gold developer Calidus Resources Ltd (ASX:CAI) and 15.0% of ASX listed gold developer Genesis Minerals Ltd (ASX:GMD) at end of March quarter.
• ALK has been granted permission by the ASX to change its ASX classification from a “mining exploration entity” to a “mining producing entity” as defined in Listing Rule 19.12.  As a result, ALK is no longer lodging Appendix 5B Quarterly Cash Flow reports.
• Alkane’s OTCQX Listing (ANLKY) using American Depository Receipts (ADRs) has been terminated. Under the terms of the Deposit Agreement with the sponsor, BNY Mellon, shareholders have until 15 January 2021 to surrender their Alkane Resources ADRs for delivery of the underlying shares.  Alkane shares continue to be quoted on OTCQX as ALKEF.

Dubbo Project

• Appointed Mr David Woodall as Managing Director of Australian Strategic Materials Limited (ASM), a wholly owned subsidiary of Alkane (ASX announcement 10 February 2020).
• Construction of the commercial scale pilot plant as part of the investment in Clean Metal Processing Technology with Ziron Tech of South Korea continued.
• Consultation with regulators regarding the demerger and listing of ASM, together with the key transaction documents is substantially completed.
• Alkane’s Board remains committed to the demerger of ASM, but is reviewing the timing of the demerger on a month by month basis given the very turbulent market conditions.

TOMINGLEY GOLD OPERATIONS (ALK 100%)

Tomingley Gold Operations (TGO) is a wholly owned subsidiary of Alkane, located near the village of Tomingley, approximately 50km southwest of Dubbo in Central Western New South Wales.  The gold processing plant was commissioned in January 2014 and has been operating at the design capacity of 1Mtpa since late May 2014.  Mining is based on four gold deposits (Wyoming One, Wyoming Three, Caloma One and Caloma Two).

Operations

• TGO continues to perform very well, successfully restarting the processing plant in February after pausing processing in late December for an extended maintenance shutdown period.  TGO is now processing underground stope material with recovery performing as expected.  Ore feed is supplemented by low grade stockpiles whenever capacity permits.  TGO continues to maintain high vigilance around COVID-19 (see ASX announcement on 30 March 2020 for detail).
• A total of 5,723 ounces of gold was poured for the quarter.
• The site cash costs for the quarter were A$995/oz with an all-in sustaining cost (AISC) of A$1,346/oz.
• Guidance for FY20 remains unchanged at 30,000 to 35,000 ounces of gold at an AISC(*1) of A$1,250 to A$1,400 per ounce.
• Gold sold for the quarter was 3,864 ounces at an average sales price of A$2,126/oz, generating revenue of A$8.2M.  Bullion stocks were 1,868 ounces (fair value of A$4.8M at quarter end).
• Site operating cash flow(*2) was A$1.8M for the quarter.

--- click on the link above for the entire report, which includes information on the TGO Underground Mining Development and the Tomingley Project Extension ---

(*1) AISC = All In Sustaining Cost comprises all site operating costs, royalties, mine exploration, sustaining capex, mine development and an allocation of corporate costs, calculated on the basis of ounces produced. AISC does not include share based payments or net realisable value provision for ore inventory.

(*2) Operating cashflow = As prescribed by AASB 107 Statement of Cashflows where exploration outflows and development outflows are grouped under investing cashflows.

22-Apr-2020:  Further Extensive Porphyry Au-Cu Mineralisation at Boda

Either the market was disappointed by the low grades of gold in these assay results or/and there was some profit taking today, as ALK were down -17% to 68.5c today, but they're still up +37% from their March low of 50 cps.

20-April-2020:  Initial San Antonio Inferred Resource

Initial San Antonio Inferred Resource Lifts Tomingley Corridor Resources To Over 1 Million Ounces of Gold

• The drilling completed at the San Antonio Deposit has been modelled and demonstrates an Inferred Mineral Resource using a 0.5g/t gold cut-off of:  
  • 7.92 million tonnes grading 1.78g/t gold (453,000oz) 
• Resources at Tomingley Gold Operations (TGO) and the exploration tenements to the immediate south of the mine that include the San Antonio Deposit (4km from TGO) are now in excess of one million ounces of contained gold:
  • Tomingley Underground: 1.36 Mt @ 3.8 g/t Au for 165 koz
  • Roswell Deposit: 7.02 Mt @ 1.97 g/t Au for 445 koz
  • San Antonio Deposit: 7.92 Mt @ 1.78 g/t Au for 453 koz
  • Peak Hill Underground: 1.02 Mt @ 3.29 g/t Au for 108 koz 
• The Resources are now being prepared into conceptual mine plans that can be used to progress mining approvals that would allow ore from the Roswell and San Antonio Deposits to be fed into the TGO one million tonne per annum processing facility.  Alkane is seeking to demonstrate a continued mine life at TGO in excess of 10 years. 
• NSW State Government Approval has already been sought for an underground exploration drive to the Roswell Deposit, with equipment purchased, personnel recruited and land acquired in order to facilitate rapid development on approval. 
• Further drilling at San Antonio and Roswell is underway to reduce the drill hole spacing in order to convert Inferred Resources to Indicated and Measured status. 
• Scope exists to expand the San Antonio Resources at depth with the drilling only defining resources to 250m from surface due to drilling difficulties. 
• Exploration Drilling is continuing in the prospective gold corridor to the south of San Antonio. 

--- click on link above for more ---