Alkane Resources Limited Exceeds Gold Production Forecast

Alkane Resources Limited (ASX:ALK) exceeded fiscal 2022 production guidance of between 55,000 and 60,000 ounces at its Tomingley gold operations in west central New South Wales, as the company seeks to become Australia’s next multi-mine gold producer.

Tomingley produced 66,804 ounces of gold for the 12 months to June 30, 2022.

Impressively, ALK’s Tomingley operation has met or exceeded forecasts in every year of operation and the company remains in a strong financial position with unaudited cash, bullion and listed investments as of June 30, 2022, totaling A$124.3 million, including A$77.9 million in cash, A$8.2 million in bullion on hand and A$38.1 million in listed investments.

Preliminary All-In Sustaining Costs (AISC) are expected to fall slightly below guidance ($1,500/oz to $1,650/oz) for the same period, however, strong overall 12-month performance at Tomingley was supported by higher-than-expected mined grade from several areas, as well as the ability of the ALK team to weather the impact of weather conditions and COVID-19.

“Outstanding performance”

Alkane Managing Director Nic Earner said: “Tomingley continues to deliver an outstanding performance, consistently meeting or exceeding expectations.

“With approvals underway to extend Tomingley’s life to at least 2031 at increased production rates, and our excellent initial resource from Boda, we look forward to the year ahead.

“Alkane’s Board of Directors and management recognize and thank the Company’s employees and contractors for their strong and continued commitment to safety, production and exploration performance.”

Alkane is currently accelerating a development path to extend the mine life beyond 2030.

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