In the first half of 2009 the directors of Alkane Resources will gather in Perth to analyse the Tomingley Gold Project feasibility study currently being prepared.

Managing director Ian Chalmers has a schedule in mind for the progress of the proposed open-pit mine that would tap into resources at the ‘Wyoming’ and ‘Caloma’ prospects, separated by the Newell Highway and not far from the village of Tomingley.

On Friday Alkane informed the Australian Securities Exchange of the final reverse circulation drilling results from ‘Caloma’ that will encourage the company to expand its exploration of the site in the future.

“The results of two holes particularly surprised us,” Mr Chalmers said.

The holes at the boundaries of a drilling zone unexpectedly turned up gold, indicating the possibility of a wider resource and a longer life for the proposed mine that all going to plan would move underground after about five years.

With statistics at hand, Alkane’s chief geologist has set about building a three-dimensional resource model for ‘Caloma’ that will form part of the feasibility study.

“It will show us tonnes and grades and the total ‘Caloma’ resource,” Mr Chalmers said.

About 600,000 ounces of

gold have been found at ‘Wyoming’.

Alkane has been undertaking “back of the envelope” costing analysis of the project but says it “can’t be sure” of the economic viability of the Tomingley Gold Project until the feasibility study is complete.

It involved extensive legwork, Mr Chalmers said, ranging from costing of chemicals to contractor wages.

Metal prices are a factor in the company’s decision-making with China and India’s “big development push” likely to see “prices remain strong” for decades.

Mr Chalmers said Alkane would begin “talking to banks” and promising them a copy of the feasibility study on its completion. Should the board give the project the thumbs up, a development application would be lodged with the NSW Government.

It would cover “standard” aspects of the project including processing technology and environmental impacts, Mr Chalmers said, as well as the likes of social impacts and water usage.

“I would hope, being the optimist I am, that it would take no more than six months,” Mr Chalmers said.