In its quarterly report to the Australian Securities Exchange, the company told of producing 15,346 ounces of gold in the three months leading up to December 31, with 14,250 ounces sold producing revenue of A$22.6 million.

A spokeswoman for Alkane Resources reported that on average an ounce of the gold was sold for A$1583 while "total cash operating costs" were A$1316 per ounce.

"Site cash flow for the quarter after site operating expenses and development expenditure was A$2.45 million," she said.

During the quarter the company's Dubbo Zirconia Project (DZP) secured a mining lease from the NSW Department of Industry Division of Resources and Energy.

The securing of an environment protection licence remains the "final major step in the approvals process" for the DZP.

The quarterly report told of talks with contractor Outotec on the supply of equipment, technology and construction methodology in a bid to "improve overall project outcomes".

Alkane Resources reports that the DZP is the most advanced non-Chinese new development capable of supplying a full spectrum of rare earths elements and other specialty metals to growing market sectors.

It is expected to have a mine life of more than 70 years and has been described as "a long-term project of global strategic significance" for Australia.

Alkane Resources is yet to finalise funding arrangements for the DZP at Toongi, south of Dubbo.