McPhillamys Gold DepositIn the early 2000s Alkane identified an area to the south-east of Orange, in the Central West of NSW that it considered prospective for gold and copper. In 2005 Alkane signed a JV with the large US gold company, Newmont Exploration Pty Ltd, to farm into the McPhillamys exploration area, approximately 35km to the east of Orange. In late 2006 the JV announced its first drill hole results, which included an impressive 123 metres grading 1.96 g/t gold from 0 metres (surface). In July 2010 the initial McPhillamys Resource was released, containing a large 2.96 million ounces of gold and 60,000 tonnes of copper. The deposit was subsequently sold to Regis Resources Limited (RRL) in 2012, from which Alkane received 17.5 million RRL shares for its interest. These shares were valued at approximately $75 million at the time of transaction.The cash generated from the subsequent sale of those shares provided funds which, together with existing shareholder funds, enabled open cut mining operations to be developed at Tomingley for a total capital cost of $116 million with no debt.
Newmont... Credit Suisse sells $244m Newmont stake in Regis Resources in 2016
so McPhillamys still up in the air.... Most of the early holders bailed at higher sp.... If McPhillamys get the approval we may re coupe all the losses and dilution...
IMP & DYOR
RRL Price at posting:
$2.55 Sentiment: Buy Disclosure: Held
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