Alkane Resources may breathe new life into its Peak Hill Gold Mine.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
It reports of a potential underground resource of 108,000 ounces of gold at the mine, an open-cut operation from 1996 to 2005.
The company, which recently announced that it would transition from open-cut to underground mining at Tomingley Gold Operations (TGO), has been exploring in the region.
It wants to boost the future ore feed to the TGO processing plant.
READ ALSO: Mayor and deputy disagree over ward system
The Peak Hill Gold Mine, located 15 kilometres south of TGO, is not the only target.
“Multi-commodity miner and explorer Alkane Resources has confirmed high-grade gold mineralisation at a number of prospects in the Tomingley regional program,” a spokeswoman for the company said.
“Alkane is undertaking an extensive regional exploration program focused on the immediate mine area to the south of Tomingley as part of the plan to provide additional ore feed, either at surface or underground, in the future to TGO.”
The spokeswoman said the company had re-evaluated the potential for the Peak Hill Gold Mine to be developed underground, after “defining a potential 108,000-ounce gold resource”.
She said core drilling would provide “confirmation of the geology and structures, and fresh material for advanced metallurgical testing”.
Development of the 40-month and $25 million TGO underground operation is scheduled to begin in early 2019 with the “first ore” to be brought to the surface by mid-year.