MORE positive drill results have been released from Alkane Resources' Tomingley Gold Project (TGP) while the start of the approval process for the Dubbo zirconia and rare earths project (DZP) edges closer.
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The latest drill results from the Caloma Two section of the TGP follow further results over the past five months and are now indicating a gold bearing zone within Caloma Two which is 100 metres wide and 300 metres long.
Intersections from the latest results range from 2.68g/t gold from 135 metres to 26.7g/t gold from 221 metres, with these results supporting Alkane's expectation of a mine life of around 10 years compared with the seven year life in the project's definitive feasibility study.
In a media statement, Alkane said it has also profited from the realisation of its gold hedge book in relation to the TGP, based on its view the gold price will recover in the medium term.
Alkane's zirconia project has a net present value of A$1.235 billion based on its recent 20 year definitive feasibility study, although Alkane expects mine life to be another 50 years beyond this.
An interesting feature of the DZP is that the heavy rare earths component of the resource will represent 4 per cent of production and produce approximately 30 per cent of revenue, while making Alkane one of the world's larger suppliers of heavy rare earths outside China.
