Name and Location
Tomingley gold project (TGP), New South Wales, Australia.

Client
Alkane Resources.

Project Description
The TGP, located in the Central West of New South Wales, is based on three gold deposits – Wyoming One, Wyoming Three and Caloma.

The project comprises three openpit mines – Caloma, Wyoming One and Wyoming Three – to be followed in year 3 or 4 by an underground operation initially focused on the Wyoming One deposit.

The mining rate will average one-million tons a year from the opencut operations and 250 000 t/y from underground operations. The higher-grade underground ore will be blended with low-grade stockpiled openpit ore to maintain a processing rate of one-million tons a year through a conventional carbon-in-leach gold recovery circuit, pending the development of other potential resources.

This treatment rate will result in average gold recovery of 50 000 oz/y to 60 000 oz/y for a minimum of seven-and-a-half years.

In the longer term, the resources could potentially be expanded through the development of the Caloma Two deposit and the Caloma underground, as well as regional exploration.

The project also involves the development of supporting infrastructure, including a 46 km water-supply pipeline between Narromine and Tomingley, an on-site electricity substation and a haulage road underpass beneath the Newell highway.

Value
The project has a recently revised estimated capital cost of A$107-million.

Duration
Production at the project is planned to start production in the second half of 2013.

Latest Developments
To date, there have been 185 reverse-circulation and 14 diamond-core holes drilled into the Caloma Two deposit and, while no Joint Ore Reserves Committee-compliant classified resource statement has been issued, the company has a good understanding of the geology and mineralisation and is at a far more advanced stage than a conceptual exploration target.

Based on extensive drilling and analogy to the nearby defined mineral resources with the Caloma, Wyoming One and Wyoming Three deposits, the Caloma Two deposit is currently considered to have an exploration target of 800 000 t to 1.2-million tons, grading 1.8 g/t to 2.2g/t gold, containing 45 000 oz to 85 000 oz of gold.

The potential quantity and grade are conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain whether further exploration will result in defining a mineral resource.

Meanwhile, the NSW government has approved the mining lease for TGP.

Key Contracts and Suppliers
Mintrex (engineering, procurement and construction management contract).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Alkane Resources, tel + 61 8 9227 5677, fax +61 8 9227 8178 or email mail@alkane.com.au.
Mintrex, tel +61 8 9442 3333, fax +61 8 9442 3399 or email mintrex@mintrex.com.au.