Mar 2024

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# Mar 2024

Source: https://investors.alkres.com/site/pdf/b40e59ac-ee82-4b7b-9009-d0e4376a6a60/Quarterly-Activities-Report.pdf
Published: 2024-04-24T00:00:00+00:00
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# Mar 2024
ASX and MEDIA RELEASE
24 April 2024
Quarterly Activities Report to 31 March 2024
Tomingley Gold Operations (Tomingley)
➢ Gold production of 10,861oz was below forecast for the quarter due to lower recoveries from
Caloma Two ore, with site operating cash costs at A$1,953/oz and AISC of A$2,454/oz. Site
operating cash flow was A$5.9m for the quarter.
➢ Gold sales for the quarter of 10,385oz for revenue of A$30.5m at an average price of A$2,933/oz.
➢ FY2024 guidance for Tomingley remains unchanged at 60,000oz to 65,000oz production at an
AISC of $A1,750/oz to $2,100/oz, with production expected to be at the lower end of guidance
and costs at the upper end of guidance.
Tomingley Gold Extension Project (TGEP)
➢ The updated Mineral Resource and Reserve for the Roswell Deposit (see ASX Announcement 27
February 2024) was estimated at:
Resource
Open Cut – 3,900kt at 1.7g/t Au for 213koz Au
Underground – 5,550kt at 2.7g/t Au for 489koz Au
Reserve
Open Cut – 3,900kt at 1.7g/t Au for 213koz Au
Underground – 3,209kt at 2.3g/t Au for 237koz Au
➢ Concrete works for the paste plant have been completed with the belt filter lifted into place.
➢ Stope mining of ore at Roswell has commenced post quarter end.
➢ Concrete works at the process plant flotation and fine grinding circuit are nearing completion.
Exploration
➢ Assay results were received from diamond core and RC drilling at Kaiser during the quarter as
part of the ongoing infill drilling to allow the updated mineral resource. Significant intercepts
included:
KAI124 1m grading 37.8g/t AuEq* (37.7g/t Au, 0.24% Cu) from 129m
and 120.5m grading 1.00g/t AuEq (0.44g/t Au, 0.40% Cu) from 351m
incl 12m grading 2.84g/t AuEq (1.05g/t Au, 1.30% Cu) from 351m
also 6m grading 3.46g/t AuEq (1.32g/t Au, 1.56% Cu) from 412m
KAI147 10m grading 1.95g/t AuEq (1.89g/t Au, 0.05% Cu) from 273m
incl 2m grading 7.11g/t AuEq (7.04g/t Au, 0.06% Cu) from 276m
and 66m grading 1.51g/t AuEq (0.52g/t Au, 0.72% Cu) from 305m
CONTACT : NIC EARNER, MANAGING DIRECTOR, ALKANE RESOURCES LTD, TEL +61 8 9227 5677
INVESTORS : NATALIE CHAPMAN, CORPORATE COMMUNICATIONS MANAGER, TEL +61 418 642 556
MEDIA : PAUL RYAN, CITADEL-MAGNUS, TEL +61 409 296 511
Level 4, 66 Kings Park Rd, West Perth WA 6005, AUSTRALIA (PO Box 768, West Perth WA 6872, AUSTRALIA)
Telephone: +61 8 9227 5677 Facsimile: +61 8 9227 8178 www.alkane.com.au mail@alkane.com.au
incl 24m grading 2.47g/t AuEq (1.03g/t Au, 1.05% Cu) from 321m
KAI158 163m grading 1.27g/t AuEq (0.49g/t Au, 0.54% Cu) from 390m
incl 45m grading 2.60g/t AuEq (0.86g/t Au, 1.26% Cu) from 424m
also 15m grading 2.52g/t AuEq (0.95g/t Au, 1.14% Cu) from 495m
KAI159 8.6m grading 14.8g/t AuEq* (14.5g/t Au, 0.24% Cu) from 316.4m
incl 3.5m grading 31.3g/t AuEq (30.6g/t Au, 0.51% Cu) from 318m
incl 1m grading 62.2g/t AuEq (60.4g/t Au, 1.33% Cu) from 320m
and 17m grading 0.90g/t AuEq (0.85g/t Au, 0.04% Cu) from 344m
incl 1m grading 11.1g/t AuEq (11.1g/t Au, 0.02% Cu) from 360m
and 30m grading 0.75g/t AuEq (0.42g/t Au, 0.25% Cu) from 673m
KAI161 14m grading 1.03g/t AuEq (0.81g/t Au, 0.16% Cu) from 158m
and 162m grading 2.13g/t AuEq (1.09g/t Au, 0.76% Cu) from 246m
incl 49m grading 3.06g/t AuEq (1.68g/t Au, 1.01% Cu) from 286m
also 22m grading 3.40g/t AuEq (2.03g/t Au, 1.00% Cu) from 357m
KAI198 41m grading 3.05g/t AuEq* (1.39g/t Au, 1.21% Cu) from 1m
incl 14m grading 8.05g/t AuEq (3.80g/t Au, 3.09% Cu) from 18m
KAI206 62m grading 1.31g/t AuEq (0.47g/t Au, 0.61% Cu) from surface
incl 16m grading 2.94g/t AuEq (1.11g/t Au, 1.33% Cu) from 42m
➢ Kaiser’s updated mineral resource estimation will be completed by the end of April 2024. A
scoping level assessment of potential project economics is expected to be completed in Q2
CY2024.
Corporate
➢ Cash, bullion, and listed investments position totalled A$41.1m. Including the undrawn project
finance facility of $50m, total liquidity was $91.1m at the end of the March quarter.
➢ Significant investments of $31 million were made during the quarter in the Tomingley expansion
– details further discussed in the Corporate section of the report.
➢ Shareholding in ASX-listed gold producer Calidus Resources Ltd (ASX:CAI) represents ~7.0%
ownership of issued capital in Calidus at the end of the March quarter.
Alkane Managing Director, Nic Earner said: “We've had a difficult quarter at Tomingley, mining through
a low recovery area at Caloma Two. Happily, that is now behind us as we ramp up mining at Roswell, both
higher grade and higher recovery. The quarter saw the release of our updated Roswell Resource, with a
large increase in Reserve.
“Our expansion capital work continues with both the Paste Plant and Processing upgrades on track for
commissioning later in the year. We’re currently reviewing the budget for Tomingley and expect to have
that completed in June.
“The updated resource for Kaiser will be completed and announced by the end of April. The scoping study
for Boda and Kaiser will be completed in the current quarter. A lot is happening within both projects, and
we look forward to communicating progress in the coming months.”
*The equivalent calculation formula is AuEq(g/t) = Au(g/t) + Cu%/100*31.1035*copper price($/t)/gold price($/oz).
The prices used were 12-month averages of US$1,950/oz gold and US$8,600/t copper, and A$:US$0.67. Recoveries
are estimated at 81% Cu and 71% gold from metallurgical studies at Kaiser. Alkane considers the elements included
in the metal equivalents calculation to have a reasonable potential to be recovered and sold.
2/15
Alkane Resources Ltd – 31 March 2024 Quarterly Report – 24 April 2024
TOMINGLEY GOLD OPERATIONS
Tomingley Gold Operations Pty Ltd 100%
Tomingley Gold Operations (Tomingley) is a wholly owned subsidiary of Alkane, located near the village
of Tomingley, approximately 50km southwest of Dubbo in Central Western New South Wales. Tomingley
has been operating since 2014. Mining occurs underground on four gold deposits (Wyoming One, Caloma
One, Caloma Two and Roswell).
Operations Performance
Tomingley had a difficult March quarter with production below forecast. The main reason was the mining
of stopes in Caloma Two, which had lower than predicted recovery due to the presence of preg-robbing
carbonaceous material. This means that gold recovery using the carbon-in-leach circuit is reduced by
competing carbon-containing materials in the ore. A reduction in recovery was anticipated, however the
impact was larger than modelled. This area has now been mined through, and the other areas scheduled
from Caloma Two have been re-sampled for similar material, which is not predicted to have the same
carbon concentration in the future.
A total of 10,861 ounces of gold was poured for the quarter. The site cash costs for the quarter were
A$1,953/oz with an all-in sustaining cost (AISC) of A$2,454/oz. Operating spend was not materially
higher, the lower production primarily drives the AISC. FY2024 guidance for Tomingley is unchanged at
60,000oz to 65,000oz production at an AISC of $A1,750/oz to $2,100/oz with production expected to be
at the lower end of guidance and costs at the upper end of guidance. Mining of stope ore at Roswell has
commenced post quarter end, successful ramp up of stoping this higher-grade material is needed to meet
the quarterly forecast.
Gold sold for the quarter was 10,385 ounces at an average sales price of A$2,933/oz, generating revenue
of A$30.5m. Bullion stocks were 1,796 ounces (fair value of A$6.1m at quarter end). The site’s operating
cash flow was A$5.9m for the quarter.
The updated Mineral Resource and Reserve for the Roswell Deposit (see ASX Announcement 27
February 2024) was estimated at:
Resource
Open Cut – 3,900kt at 1.7g/t Au for 213koz Au
Underground – 5,550kt at 2.7g/t Au for 489koz Au
Reserve
Open Cut – 3,900kt at 1.7g/t Au for 213koz Au
Underground – 3,209kt at 2.3g/t Au for 237koz Au
Grade control and resource extension drilling continue at Roswell.
3/15
Alkane Resources Ltd – 31 March 2024 Quarterly Report – 24 April 2024
Roswell Underground Ore Block Grades
Tomingley Gold Extension Project
Concrete works for the paste plant have been completed with the belt filter lifted into place. Concrete
works at the process plant flotation and fine grinding circuit are nearing completion. Both projects are
currently on schedule for commissioning in the September CY2024 quarter.
Process flotation and fine grind circuit concrete works
4/15
Alkane Resources Ltd – 31 March 2024 Quarterly Report – 24 April 2024
Paste plant concrete and belt filter
Internal light vehicle and pipeline corridor construction between Caloma Two and Roswell
Exploration
Aircore drilling at the Allendale prospect, located in the exploration tenements surrounding Tomingley,
occurred during the quarter. Aircore drilling also occurred at the Armstrongs prospect, near Parkes.
5/15
Alkane Resources Ltd – 31 March 2024 Quarterly Report – 24 April 2024
Tomingley FY 2024 Quarterly and Annual Production Figures
FY Sep Quarter Dec Quarter Mar Quarter FY
Tomingley Production
2023 2023 2023 2024 2024
Underground
Ore mined Tonnes 822,585 241,591 277,547 230,694 749,832
Grade g/t 2.50 2.12 1.88 1.82 1.94
Ore milled Tonnes 1,069,331 276,654 287,550 296,644 860,849
Head grade g/t 2.42 2.10 1.84 1.69 1.87
Recovery % 84.3 81.9 77.9 67.6 76.1
Gold poured Ounces 70,253 15,855 13,182 10,861 39,898
Revenue Summary
Gold sold Ounces 70,498 16,090 14,507 10,385 40,982
Average price realised A$/oz 2,703 2,897 2,926 2,933 2,916
Gold revenue A$M 190.5 46.6 42.4 30.5 119.5
Cost Summary
Surface works A$/oz 134 30 29 53 36
Mining A$/oz 461 682 771 860 759
Processing A$/oz 388 435 444 750 518
Site Support A$/oz 141 175 220 289 220
C1 Site Cash Cost A$/oz 1,124 1,322 1,464 1,953 1,532
Royalties A$/oz 93 93 82 85 87
Sustaining capital A$/oz 364 429 508 340 434
Gold in circuit and A$/oz -49 223 51 (36) 97
inventory movements
Rehabilitation A$/oz 22 32 29 16 27
Corporate A$/oz 47 57 65 96 70
AISC1 A$/oz 1,602 2,156 2,200 2,454 2,247
Bullion on hand Ounces 2,890 2,651 1,322 1,796 1,796
Stockpiles
Ore for immediate milling Tonnes 328,594 289,287 281,701 215,751 215,751
Grade g/t 1.04 0.94 0.95 0.86 0.86
Contained gold Ounces 10,940 8,757 8,621 5,975 5,975
1AISC = 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 sold. AISC does not include share-based payments or net realisable value provision for ore inventory.
6/15
Alkane Resources Ltd – 31 March 2024 Quarterly Report – 24 April 2024
7/15
Alkane Resources Ltd – 31 March 2024 Quarterly Report – 24 April 2024
CORPORATE
Cash, Bullion and Listed Investments
Description Dec-23 Quarter Mar-24 Quarter
A$M A$M
Cash 57.3 28.4
Bullion 4.0 6.1
Cash and bullion sub-total 61.3 34.5
Listed investments 12.1 6.6
Total cash, bullion and listed investments 73.4 41.1
Banking Facilities
At the end of the quarter, the Company had $8.9 million of mobile equipment financing.
Alkane has a Project Loan Facility of $50 million with Macquarie Bank Limited (Macquarie) to develop the
Tomingley Gold Extension Project. This facility was undrawn at the end of the quarter as development
activities to date have been funded from cash. In April, post quarter end, the facility was increased to
$60 million and $23 million subsequently drawn to fund capital works and the purchase of put options
(therefore not included in the end of March balance shown above).
Cashflows
The waterfall chart below summarises the quarterly movement in cash held (excludes bullion and
investments held at the beginning and end of the period):
*AISCC – 10,385ozs sold x $2,454/oz. The Gold in

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