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 ASX; ALK
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Company Statement
Alkane Resources Ltd is an ASX listed multi commodity explorer and miner focused in the Central West Region of New South Wales. It has two advanced feasibility studies in progress and a new major gold discovery in partnership with Newmont. The Company recently sold its remaining interest in listed BC Iron Ltd to raise A$9.6 million. Alkane also has a 23% reducing interest in a nickel sulphide JV with Xstrata Nickel (Jubilee) in WA.
Current Operations
TOMINGLEY GOLD PROJECT
Gold – New South Wales
Alkane Resources Ltd 100%
The Tomingley Gold Project (TGP) extends over 100 km from near Parkes in the south, to near Narromine in the north, located within the Central West of New South Wales and covers a narrow sequence of Ordovician volcanic rocks. The current area of focus is the Wyoming and Caloma Prospects situated about 12 km north of the Company’s Peak Hill Gold Mine and immediately north of the historic 70,000 ounce gold producing Myall United Mine.
Wyoming and Caloma are part of a number of prospects and gold occurrences located along this volcanic belt. Gold mineralisation has a close spatial relationship to a feldspar porphyry which intrudes into andesitic volcaniclastic rocks near their western contact with a more pelitic sequence. Mineralisation is associated with extensive alteration and quartz veining of the porphyry and volcanic rocks. Several distinct areas have been identified to date within a 3km corridor extending from McLeans in the south to Wyoming Three in the north. Major resource drilling has been completed at Wyoming and more recently Caloma, 500 metres east of the Wyoming deposits.
TGP Development Summary
- 850,000 ounce resource identified to date at the TGP.
- Definitive Feasibility Study in progress and should be completed by August 2010.
- Base case development model of 1,000,000tpa from the three open pits followed by an underground operation at Wyoming One to produce 50-60,000oz pa.
- Cash flows of A$30M pa for a minimum of seven years for the base case with further ore potential from Caloma underground and open pit ore from the newly discovered South Caloma deposit.
- Complete Environmental Assessment and lodge Development Application mid 2010.
- Investigate financing options, and possible development commitment by late 2010, with production early 2012.
Zirconium, niobium-tantalum, yttrium-rare earths – NSW
Australian Zirconia Ltd (AZL) 100%
The Dubbo Zirconia Project (DZP) is located 20km south of the large regional centre of Dubbo, approximately 400km northwest of Sydney in the Central West region of New South Wales. The Company has carefully evaluated the commercial viability of the DZP since the discovery of the orebody and remains convinced that the Project will become an important contributor to the zirconium-hafnium, niobium-tantalum and yttrium-rare earth industries over hundreds of years. The project could also produce uranium.
Current Program
- AusIndustry Commercial Ready Grant in 2006 of A$3.29M on dollar for dollar basis to complete process optimisations, and construct and operate the Demonstration Pilot Plant.
- Laboratory program commenced at ANSTO (Lucas Heights) July 2006
with a Demonstration Pilot Plant operating since April 2008. - Working flow sheet for the recovery of a suite of zirconium chemicals and zirconia, a niobium-tantalum concentrate, a light rare earth concentrate and a yttrium heavy rare earth concentrate.
- Distribution of substantial volumes of zirconium and niobium products in the second half of 2009, and yttrium-heavy rare earths and light rare earth in mid 2010.
- Revise and update the 2002 feasibility study, with development decision anticipated by late 2010 and production late 2012.
- The DZP provides a substantial and strategic alternative supply of zirconium and yttrium-heavy rare earths to these current China dominated markets
Gold, copper – NSW
Alkane Resources Ltd 49%, Newmont Australia earned an initial 51% in August 2009
In August 2005, Alkane reached agreement with Newmont Australia Limited (Newmont) to farmin to Alkane’s Orange Project which includes the Molong and Moorilda tenements located near the city of Orange in the Central West of New South Wales, adjacent to Newcrest Mining Ltd’s Cadia Valley Operations (~60Moz total resources).
In mid 2006 drilling targeted the McPhillamys prospect within the Moorilda Project and identified significant gold mineralization over a strike length of 600 metres and up to 200 metres width.
- Initial drill intercepts included 123m @ 1.96g/t gold and 366m @ 1.86g/t gold
- Follow up drilling has indentified a target potential of at least 4M oza of gold and 100,000t of copper metal.
- In March 2010, Newmont elected to take their equity to 75% by completing a Bankable Feasibility Study on the Project.
- The study will expand on the conceptual open pit and underground development operations considered late 2009.
- Regional exploration in progress to evaluate McPhillamys type targets and more drilling scheduled to test these targets in mid 2010.
- Follow up deep diamond drilling at McPhillamys is scheduled to commence mid 2010.
Gold, copper – NSW
Alkane Resources Ltd 100%
Alkane has other advanced exploration projects in the Central West of NSW, including a 2Mt open pitable resource grading 1.00% copper and 0.3g/t gold at Galwadgere (Wellington), with several nearby base metal targets; a copper-gold porphyry target at Bodangora; and a new substantial gold target at Cudal.
Geographical Spread
New South Wales and Western Australia, Australia
Board of Directors and Key Management
| John Dunlop | (Chairman) |
| D. Ian Chalmers | (Managing Director) |
| Ian (Inky) Cornelius | (Non-executive Director) |
| Anthony Lethlean | (Non-executive Director) |
| Ian Gandel | (Non-executive Director) |
| Lindsay Colless | (CFO and Joint Company Secretary) |
| Karen Brown | (Joint Company Secretary) |
Company Address129 Edward Street
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Additional Address/Key ContactPostal address |
Capital249 million as at 31 March 2010 |
Year End31 December |
Major Shareholders
| Abbotsleigh Pty Ltd | 28.41% |
| Merryill Lynch | 5.96 % |
| ANZ Nominees | 4.92 % |
| National Nominees | 4.01% |
| JP Morgan Nominees | 3.04 % |
Related News
21/07/10 - Alkane Says Goodbye To Inky And Hello To A Bright Future14/04/10 - Shares In Alkane Resources Surge As American Buyers Develop A Taste For Its Niobium, Zirconium And Rare Earths Project
05/10/09 - Alkane’s Rare Rise, With More To Come As The Gold News Sinks In
21/07/09 - Small Is Beautiful For Alkane Resources, As It Moves Towards Gold Production In New South Wales
24/03/09 - Alkane Resources Shows Every Sign Of Re-Awakening After A Bit Of A Snooze And A Few False Starts
Most Recent Statement
17/08/10 - Yttrium-heavy rare earth circuit added to Demo Pilot Plant16/08/10 - Caloma Two RC Drill Results Confirm Potential
22/07/10 - Quarterly Report to 30 June 2010
05/07/10 - McPhillamy’s First Resource Estimate: 2.96 Million Oz Gold
13/06/10 - GoldLetter International
04/06/10 - Tomingley Gold Project Progress Report