Alkane gold output dips but remains in guidance, $1bn Dubbo project construction ready

JOHANNESBURG (miningweekly.com) – Multicommodity explorer and miner Alkane Resources poured 67 812 oz of gold in the year ended June 30, which was within guidance, but below the previous year’s production of 69 612 oz.

Alkane, which produced gold at the Tomingley mine in New South Wales, sold 67 983 oz at an average price of A$1 605/oz to realise revenue of A$109.1-million in the 12 months under review. This compared with sales of 70 734 oz in the 2015 financial year and revenue of A$101.9-million.

Gold poured for the final quarter of the financial year was 18 064 oz, of which 17 773 oz were sold at an average sales price of A$1 658/oz, generating revenue of A$29.4-million.

“The June quarter finishes a very positive year at the Tomingley gold mine, with both production and cost being within the original full year guidance issued over a year ago,” Alkane reported.

Tomingley comprises four separate gold deposits, with mining in the quarter from Caloma and for the first time, Wyoming One.

Alkane’s Dubbo zirconia and rare earths project final land purchases were completed during the June quarter, taking the total site area to 3 500 ha, with 500 ha required for operations, 1 000 ha allocated to biodiversity offsets and 2 000 ha to remain as mixed farming land.

The A$1-billion Dubbo project, in New South Wales, was now construction ready, pending financing, with financing discussions progressing further during the quarter.

Alkane also reported that discussions continued with Vietnam Rare Earth JSC following the signing of the letter of intent for toll processing of rare earths concentrate from Dubbo.

Other marketing efforts included a presentation on hafnium at the Minor Metal Trade Association yearly conference in Amsterdam, in the Netherlands, visits to key customers for Dubbo products in Europe and the US, and a presentation on zirconium products and the Dubbo project at the Ruidow Zircon Conference in Nanjing, China.

“The Dubbo project remains the most advanced non-Chinese new development capable of supplying a full spectrum of rare earth elements and other specialty metals to growing market sectors,” Alkane reported.

Among exploration work during the quarter was exploration for additional resources in the Tomingley project area, a review of targets in the 30-km-long prospective belt including the Peak Hill gold mine, still in progress, and a drilling programme completed at Bodangora and Elsienora.