Drilling at the Tomingley Gold Mine in Australia Intersects High-Grade Ore

According to Miningnews.net, gold miner Alkane Resources hopes that the "significant" mineralization zone discovered through drilling 150 meters away from the McLeans/Roswell deposit at its Tomingley project in New South Wales will become a new ore source.

The best intersection was 26 meters thick with a gold grade of 4.36 g/mt, though the true width remains undetermined.

Drilling is ongoing.

Over the past year and a half, Alkane has been conducting underground mining at Tomingley, with Roswell connected to the Wyoming One open pit via an approximately 3-kilometer decline.

The McLeans gold deposit has an inferred resource of 70,000 ounces and is located less than 1 kilometer from the Roswell deposit, which serves as the primary ore source for Alkane's 1 million-tonne-per-year processing facility.

Last quarter, Tomingley's gold production was 18,335 ounces, with an all-in sustaining cost of AUD 2,628 per ounce.

The mine generated an operating cash flow of AUD 39 million, Alkane reported.

Last quarter, Alkane merged with gold-antimony producer Mandalay Resources, with the new company targeting annual production of 160,000 to 175,000 gold equivalent ounces for the current year, at an all-in sustaining cost of AUD 2,600–2,900 per ounce.