Alkane Resources has exceeded expectations at the Tomingley gold operations in New South Wales by surpassing its production guidance for the 2021 financial year.
The company surpassed its gold production guidance (50,000 ounces to 55,000 ounces) by producing 56,958 ounces of gold.
Alkane’s preliminary all in sustaining cost (AISC) at Tomingley was also promising at $1320 per ounce, below the guidance range between $1400 ounces to $1550 ounces.
Its guidance for the 2022 financial year is set between 55,000 and 60,000 ounces at an AISC of $1450 to $1600 per ounce.
The company’s unaudited cash, bullion and listed investments position at the end of the 2021 financial year reached $73.9 million, including $19 million in cash, $7.7 million of bullion in hand and $47.2 million.
Alkane managing director Nic Earner said Tomingley has met and passed expectations.
“Tomingley continues to meet or exceed our expectations, demonstrating why it is a great asset managed by a highly professional and committed operations team,” Earner said.
“With an updated mine plan that extends the life of Tomingley to at least 2031, at increased production rates, we remain buoyant about the longer-term prospects both at Tomingley and at our Boda exploration tenements.
“Alkane’s board and management acknowledge and thank the teams at Tomingley and in Exploration for their strong and continued safety, production and discovery performance.”
In June, Alkane stated it would be mining the Roswell and San Antonio resources at Tomingley as part of its mine life extension.
Both resources will begin open cut and underground mining from the 2023 financial year.
Alkane has anticipated it will mine around 745,000 ounces of gold through to 2031 with processing increasing to a 1.5 million tonne per annum feed rate.
“We intend to increase our processing throughput and ramp production to over 100,000 ounces per year from the 2025 financial year, whilst continuing production at the current run rate in the interim.
“With the high-grade Roswell deposit open at depth, there is real potential for further increases in production in the late 2020s,” Earner said in June.
Alkane is aiming to become a multi-mine gold producer with its market capitalisation at $717.44 million.
Its share price is trading at $1.22 per share at the time of writing.