Name of the Project
Tomingley gold extension project.

Location
Central-west New South Wales, Australia.

Project Owner/s
Alkane Resources.

Project Description
Alkane plans to extend its Tomingley operations to the San Antonio and Roswell (SAR) resources immediately south of the existing mine. 

The opencut will comprise up to three pits, combining the adjacent SAR deposits – SAR opencut. The total opencut will be up to 1.7 km long, 700 m wide and 310 m deep. The opencut will be mined in stages to minimise biodiversity disturbance and allow for progressive rehabilitation.

Alkane also plans to develop an underground mine at Roswell, using the exploration drive originating at the Wyoming One underground operation. A portal may later be established within a completed stage of the SAR opencut.

Processing of the ore will be undertaken at the existing Tomingley processing plant, which will undergo some modifications to achieve the already approved 1.5-million-tonne-a-year rate, with production to be increased to 1.75-million tonnes a year for short periods. The height of the second residue storage facility (RSF) to the south of the existing RSF will also be increased.

A haul road will transport ore through the existing Newell Highway underpass from the SAR opencut to the Tomingley processing plant.

The extension project will increase the mine’s life until 2032.

Potential Job Creation
The extension of the operations will secure 150 jobs for the region.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
More than A$30-million.

Planned Start/End Date
The Tomingley project was approved by the New South Wales Minister for Planning in February 2023.

Latest Developments
The New South Wales government has approved the Tomingley gold extension project, allowing for the development of the SAR deposits, south of the Tomingley operation.

The approval allows for processing 1.75-million tonnes of ore, extending the mine life until 2032 and relocating the Newell highway.

Pending the applications for the environmental protection licence and the mining lease, which cannot now be refused, and completion of its updated management plans, Alkane intends to be mining ore from underground at Roswell before the end of 2023.

Alkane has also secured A$50-million in debt funding from Macquarie Bank to finance the extension project, along with 100 000 oz of gold hedging with a weighted average price of A$2 825/oz. The hedging will cover the period between March 2024 and December 2026.

First drawdown of the funding is permitted with the approval of the mining lease, which is expected in mid-2023.

In addition to the Macquarie Bank hedging, Alkane also holds forward sales contracts for 24 500 oz of gold at A$2 778/oz, which will be delivered throughout 2023

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Alkane Resources, tel +61 8 9227 5677 or email mail@alkane.co.au.