Alkane Resources has released its December 2024 quarterly results, with the company’s managing director Nic Earner describing the quarter as “significant”.
Alkane produced 14,852 ounces (oz) of gold from its Tomingley gold mine in New South Wales during the December quarter. While the result was below what the company forecasted for the period, the amount was offset by the gold-in-circuit, which increased by approximately 1700oz.
Alkane’s processing recoveries totalled 84.2 per cent, with its new flotation and fine grind circuit being commissioned during the quarter. The company plans to continue optimising the circuit to increase recovery.
Alkane sold 16,576oz for $59.4 million at an average price of $3582/oz during the quarter.
Alkane’s 2024–25 financial year guidance for Tomingley will remain unchanged at 70,000–80,000oz at an all-in sustaining cost of $2400–$2600/oz.
“This has been a significant quarter for Alkane with the commissioning of two new circuits,” Earner said.
“The flotation and fine grind circuit has already started to improve gold recovery, and the paste plant has delivered its first fill underground early in January 2025.”
Commissioning of the flotation and fine grind circuit and the paste plant concludes Alkane’s current phase of capital growth. Further commissioning and stabilisation of the paste plant will occur throughout the March 2025 quarter.
“The expenditure in the current phase of the Tomingley expansion is now largely complete,” Earner said.
“Our attention is on optimising and leveraging the value from these two projects and early work with the contractor and regulator on the Newell Highway diversion.”
Exploration was also a highlight for Alkane, with the company discovering new prospects at Tomingley’s El Paso, San Antonio and Plains deposits. The company plans to test these targets throughout 2025.
Alkane ended the December quarter with $57.4 million in total liquidity and $42.4 million in cash, bullion, and listed investments.
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