The board of multicommodity miner Alkane has approved the underground development of the Tomingley gold operation in central-west New South Wales, with first ore from the underground mine expected by the middle of next year.
The approved plan includes 93 000 oz of gold that will be recovered over 40 months at a cash cost of between A$1 100/oz to A$1 200/oz.
Opencut operations will continue on day shift at Tomingley until early 2019 as exposed ore is removed from the base of the pits. Processing of medium grade stockpiles will continue until about April 2019 and then resume on underground ore.
The guidance for the final year of opencut operations remains at 30 000 oz to 35 000 oz gold at an all-in sustaining cost of A$1 300/oz to A$1 400/oz.
Alkane plans to start ground support work for the portal late this year and development work will start shortly thereafter in early 2019.
Alkane has bought most of the equipment needed for the underground mine and has started recruiting experienced underground operators and support crew.