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Further approvals for Alkane's Tomingley

11th February 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) - ASX-listed Alkane Resources has been granted a mining lease over its Tomingley gold project, in New South Wales, from the Department of Trade and Investment, inducing the Alkane board to give its full approval for the project’s immediate development.

Alkane said on Monday that it would spend some A$116-million to develop the Tomingley project, with total construction time estimated at 11 months from start of site works.

First gold was anticipated late in 2013.

Alkane noted that while the base case mine life for the project had been slightly reduced, by six months, to seven years, anticipated gold production had increased from 360 000 oz to 380 000 oz, to generate an earnings before interest, taxes, depreciation and amortisation of A$217-million.

Tomingley also had significant upside, with mineralisation currently being drilled at Caloma Two, extensions to the Wyoming One underground and further expansions of the Caloma openpit and underground resources.

Edited by Creamer Media Reporter

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