- Alkane Resources (ALK) receives approval from the New South Wales Minister for Planning and $50 million in debt funding for its Tomingley gold extension project
- The approval includes the development of the Roswell and San Antonio deposits and an upgrade to the existing Tomingley processing plant
- Underground mining at Roswell is expected to start before the end of this year
- Meanwhile, Alkane Resources has also locked in $50 million in debt funding for the extension project from Macquarie Bank
- Alkane Resources shares are up 2.4 per cent to 64 cents at 12:28 pm AEDT
Alkane Resources (ALK) has received approval from the New South Wales Minister for Planning and $50 million in debt funding for its Tomingley gold extension project.
According to the company, this expansion includes the development of the Roswell and San Antonio deposits, diverting a section of the Newell Highway to the west, new and relocated infrastructure, as well as a minor upgrade of the existing Tomingley processing plant. Underground mining at Roswell is expected to start before the end of this year.
For its next steps, the company stated it would progress with its environmental protection licence and mining lease applications. These applications reportedly cannot be refused following the Minister’s approval.
Additionally, Alkane Resources will submit its required updated management plans. Each of these is needed to commence physical mining and construction work.
In other news, Alkane Resources secured $50 million in debt funding for the extension project from Macquarie Bank. This was done together with the hedging of 100,000 ounces of gold with a weighted average price of $2825 per ounce for March 2024 to December 2026.
Alkane Managing Director Nic Earner said the approval and funding were “significant” milestones in the life of the company’s Tomingley gold mine.
“We intend to be mining underground from Roswell before the end of the year, and we’re targeting a 100,000-ounce-per-annum run rate in 2025,” Mr Earner said.
“We’re continuing to explore nearby exploration targets, including Macleans, which is immediately adjacent to our vent rise at Roswell.”
Alkane Resources owns a gold processing plant near the village of Tomingley, about 50 kilometres southwest of Dubbo in New South Wales. The plant has been operating at the design capacity of one million tonnes per annum since May 2014.
Mining in this area is currently occurring on three gold deposits. An exploration drive currently extends over 2.4 kilometres toward the Roswell and San Antonio deposits.
Alkane Resources shares were up 2.4 per cent to 64 cents at 12:28 pm AEDT.