# Jun 2024

Source Brief: https://evesgoldminers.com/research/source-briefs/alkane-resources-ltd-2024-07-25-jun-2024-43324a3d
Original source: https://investors.alkres.com/site/pdf/3987baf3-6249-47b7-8c5f-ef73fe06750f/Quarterly-Activities-Report.pdf
Original published: 2024-07-25
EGM generated: 2026-09-04
Company: Alkane Resources Ltd (ALK)

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## Extracted Document Text

# Jun 2024

Source: https://investors.alkres.com/site/pdf/3987baf3-6249-47b7-8c5f-ef73fe06750f/Quarterly-Activities-Report.pdf
Published: 2024-07-25T00:00:00+00:00
Fetched: 2026-05-12T14:07:36.055+00:00
Source artifact: 43324a3d-1623-43f6-a205-537aba89379d
Normalizer input: text

## Content

# Jun 2024
ASX and MEDIA RELEASE
25 July 2024
Quarterly Activities Report to 30 June 2024
Tomingley Gold Operations (Tomingley)
➢ Gold production of 17,319oz was on forecast for the quarter, with site operating cash costs at
A$1,565/oz and AISC of A$1,867/oz. Site operating cash flow was A$19.2m for the quarter.
➢ Gold production for the FY24 was 57,217oz, with site operating cash costs of A$1,541 and AISC
of A$2,137. Site operating cash flow was A$64.8m for FY24.
➢ Stope mining of ore at Roswell commenced during the quarter.
➢ Gold sales for the quarter of 16,610oz for revenue of A$53.5m at an average price of A$3,219/oz.
➢ FY2025 guidance for Tomingley is 70,000oz to 80,000oz production at an AISC of A$2,400/oz to
$2,600/oz. The higher cost reflects a one-off increase in decline development that is accounted
as sustaining capital and therefore, included in the AISC.
➢ The Tomingley five-year plan (see ASX Announcement 24 June 2024) shows total planned
production from FY25-FY29 of 455,000oz to 505,000oz at an AISC of A$1,900/oz to $2,100/oz.
Tomingley Gold Extension Project (TGEP)
➢ Structural works for the paste plant are largely complete with work commencing on the electrical
installation. The paste plant is expected to be commissioned in Q4 2024.
➢ Structural work at the process plant flotation and fine grinding circuit is nearing completion. The
circuit is expected to be commissioned in Q4 2024.
➢ The surface internal access road and pipeline corridor from Caloma Two to Roswell is well
underway and expected to be completed in the current quarter.
➢ The first of the new CAT 2900XE underground loaders has arrived on site. The remaining three
units are expected to be delivered in the current quarter.
Boda-Kaiser
➢ The scoping study for the Boda-Kaiser Project was released post-quarter end (see ASX
Announcement 10 July 2024). The study showed that a 20 million tonnes per annum processing
scenario:
• Processes 323 million tonnes of ore at 0.26g/t gold and 0.15% copper over 17 years.
• Mines 319 million tonnes from open cut mining and 4 million tonnes from underground
mining. 85% of the ore mined comes from Indicated Resource and 15% from Inferred.
• Produces an average 35,600 tonnes of copper and 159,300 ounces of gold per annum for
the first five years of operation.
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
• Costs were estimated at A$630 per gold ounce (with copper by-product credit) over the
17-year life (2024 dollars).
• Undiscounted free cash flow of A$5.7 billion would be generated over the 17-year life
(using an average price of A$15,000/t for Cu and A$3,500/oz for gold).
• A forecast capital cost of A$1,783 million with an additional A$223 million of development
and sustaining capital over the 17-year life.
• An estimated Net Present Value (NPV 7%, pre-tax) of A$1.8 billion, estimated 24% Internal
Rate of Return (IRR, pre-tax), with a Pre-Tax NPV to Start-up Capital ratio of 1.0.
Exploration
➢ Regional exploration drilling of nine RC and one diamond core drill holes was completed during
the quarter at the Driell Creek prospect, located northwest of Boda-Kaiser. All drilling identified
porphyry style alteration and mineralisation significant results included:
DRC004 130m grading 0.25g/t Au, 0.11% Cu from 174m to end of hole.
DRC010 47.7m grading 0.12g/t Au, 0.15% Cu from 279.3m
incl 7m grading 0.34g/t Au, 0.26% Cu from 320m
DRC002 9m grading 0.61g/t Au from 255m (gold only zone)
DRC007 30m grading 0.13g/t Au, 0.10% Cu from 78m
and 6m grading 0.26g/t Au, 0.15% Cu from 96m
Corporate
➢ Cash, bullion, and listed investments position totalled A$54.5m including the undrawn portion
of the $60m project finance facility. Total liquidity was $71.6m at the end of the March quarter.
➢ Significant investments of $31.7 million were made during the quarter in the Tomingley
expansion – details are discussed further in the Corporate section of the report.
➢ Note that listed investments assume no value for shares in Calidus Resources Ltd (ASX:CAI) as
receivers and administrators were appointed for Calidus on 28 June 2024. This change in value
for CAI shares will also be reflected in Alkane’s full year FY2024 audited financial results.
Alkane Managing Director Nic Earner said: “This has been a quarter of both strong production
performance and a focus on executing our growth projects.
“We are producing stope ore from our new mining area, the underground at Roswell. Our expansion
capital work continues with the Paste Plant and Processing upgrades, which are on track for
commissioning later in the year. We’ve released the five-year plan for Tomingley, which shows our
pathway to producing over 100,000oz per year.
“Our recently released scoping study for Boda-Kaiser shows that at current copper and gold prices a large
mine and processing facility can be built with strong economic returns. Over the next year, our focus at
Boda-Kaiser will be regional exploration, environmental studies, increasing our understanding of mining
options and discussions with potential strategic partners.
“We look forward to continuing to deliver on these plans.”
2/15
Alkane Resources Ltd – 30 June 2024 Quarterly Report – 25 July 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 solid quarter with production meeting forecast, and ore has been mined from Roswell
stopes since April. The Roswell ore grades are typically higher than the other deposits. Underground
infrastructure at the Roswell mining area continues to be completed, with crib and office facilities now
established. A maintenance and re-fuelling area will be commissioned in the current quarter. Late in the
quarter, the first of four CAT 2900XE loaders arrived on site. These diesel-over-electric loaders are
expected to increase efficiency and lower cost.
A total of 17,319 ounces of gold was poured for the quarter. The site cash costs for the quarter were
A$1,565/oz with an all-in sustaining cost (AISC) of A$1,867/oz. Gold production for the FY24 was
57,217oz, with site operating cash costs of A$1,541 and AISC of A$2,137. FY2025 guidance for Tomingley
is 70,000oz to 80,000oz production at an AISC of A$2,400/oz to $2,600/oz. The higher cost reflects a one-
off increase in decline development that is accounted as sustaining capital and therefore, included in the
AISC.
Gold sold for the quarter was 16,610 ounces at an average sales price of A$3,219/oz, generating revenue
of A$53.5m. Bullion stocks were 2,500 ounces (fair value of A$8.7m at quarter end). The site’s operating
cash flow was A$19.2m for the quarter.
The Tomingley five-year plan (see ASX Announcement 24 June 2024) shows total planned production
from FY25-FY29 of 455,000oz to 505,000oz at an AISC of A$1,900/oz to $2,100/oz. Grade control and
resource extension drilling continue at Roswell.
Tomingley Gold Extension Project
Structural works for the paste plant are primarily complete, with work commencing on the electrical
installation. The paste plant is expected to be commissioned in the December quarter of 2024. Structural
work at the process plant flotation and fine grinding circuit is nearing completion. The circuit is expected
to be commissioned in the December quarter of 2024. The surface internal access road and pipeline
corridor from Caloma Two to Roswell is underway and scheduled to be completed in the current quarter.
Exploration
Full results for the regional exploration aircore, RC and core drilling of several targets within and adjacent
to the Tomingley to Peak Hill corridor have yet to be received. This data will be compiled into a summary
report expected to be released in the current September quarter.
3/15
Alkane Resources Ltd – 30 June 2024 Quarterly Report – 25 July 2024
Process flotation and fine grind circuit structural works
Paste plant structural works
4/15
Alkane Resources Ltd – 30 June 2024 Quarterly Report – 25 July 2024
Internal light vehicle and pipeline corridor construction between Caloma Two and Roswell
New 66kV yard (bottom yard) and generators
5/15
Alkane Resources Ltd – 30 June 2024 Quarterly Report – 25 July 2024
Tomingley FY 2024 Quarterly and Annual Production Figures
FY Sep Quarter Dec Quarter Mar Quarter Jun Quarter FY
Tomingley Production
2023 2023 2023 2024 2024 2024
Underground
Ore mined Tonnes 822,585 241,591 277,547 230,694 297,203 1,047,035
Grade g/t 2.50 2.12 1.88 1.82 2.49 2.10
Ore milled Tonnes 1,069,331 276,654 287,550 296,644 271,690 1,132,538
Head grade g/t 2.42 2.10 1.84 1.69 2.41 2.00
Recovery % 84.3 81.9 77.9 67.6 84.1 78.4
Gold poured Ounces 70,253 15,855 13,182 10,861 17,319 57,217
Revenue Summary
Gold sold Ounces 70,498 16,090 14,507 10,385 16,610 57,592
Average price realised A$/oz 2,703 2,897 2,926 2,933 3,219 3,004
Gold revenue A$M 190.5 46.6 42.4 30.5 53.5 173.0
Cost Summary
Surface works A$/oz 134 30 29 53 26 33
Mining A$/oz 461 682 771 860 902 800
Processing A$/oz 388 435 444 750 469 504
Site Support A$/oz 141 175 220 289 168 205
C1 Site Cash Cost A$/oz 1,124 1,322 1,464 1,953 1,565 1,541
Royalties A$/oz 93 93 82 85 112 94
Sustaining capital A$/oz 364 429 508 340 319 401
Gold in circuit and A$/oz -49 223 51 (36) (186) 15
inventory movements
Rehabilitation A$/oz 22 32 29 16 2 20
Corporate A$/oz 47 57 65 96 55 66
AISC1 A$/oz 1,602 2,156 2,200 2,454 1,867 2,137
Bullion on hand Ounces 2,890 2,651 1,322 1,796 2,500 2,500
Stockpiles
Ore for immediate milling Tonnes 328,594 289,287 281,701 215,751 241,179 241,179
Grade g/t 1.04 0.94 0.95 0.86 1.13 1.13
Contained gold Ounces 10,940 8,757 8,621 5,975 8,776 8,776
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 – 30 June 2024 Quarterly Report – 25 July 2024
7/15
Alkane Resources Ltd – 30 June 2024 Quarterly Report – 25 July 2024
CORPORATE
Cash, Bullion and Listed Investments
Description Mar-24 Quarter Jun-24 Quarter
A$M A$M
Cash 28.4 45.5
Bullion 6.1 8.7
Cash and bullion sub-total 34.5 54.2
Listed investments 6.6 0.3
Total cash, bullion and listed investments 41.1 54.5
Banking Facilities
At the end of the quarter, the Company had $6.9 million of mobile equipment financing.
Alkane has a Project Loan Facility of $60 million with Macquarie Bank Limited (Macquarie) to develop the
Tomingley Gold Extension Project. This was restructured during the quarter (see ASX Announcement 17
May 2024). This facility had $42.8 million drawn at the end of the quarter. The drawdowns include $7.8m
for put options and $35.0m (included in cashflow waterfall) for Tomingley growth expenditures. It is
anticipated that the project finance facility will be fully drawn during the current September quarter.
Cashflows
The waterfall chart below summarises the quarterly movement in cash held (excludes bullion and
investm

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