PERTH (miningweekly.com) – Gold miner Alkane Resources has beaten its production expectations in the three months to December, with the miner increasing its full year output target for the full 2021.
The miner on Tuesday reported that its Tomingley operation, in New South Wales, produced 15 919 oz of gold during the quarter, at all-in sustaining costs (AISC) of A$1 201/oz, ahead of expectations.
The December quarter production was also ahead of the 11 499 oz delivered in the September quarter, bringing first-half production to 27 418 oz.
Gold sales for the quarter reached 16 613 oz, and at an average sales price of A$2 302/oz, Alkane generated revenues of A$38.2-million for the quarter under review. The ASX-listed company told shareholders that bullion stocks at the end of the quarter stood at 1 083 oz, at a fair value of A$2.7-million.
On the back of the higher December quarter production, Alkane has increased production expectations from the previous estimate of between 45 000 oz and 50 000 oz, to between 47 000 oz and 52 000 oz, at an AISC of between A$1 450/oz and A$1 600/oz for the full year.
Meanwhile, the company is continuing with its Tomingley gold extension project, which would see the development of the Roswell and San Antonio deposits, which are some 3 km to 5 km south of the current Tomingley project.
Alkane has started the approval process for the development, and feasibility plans that will include both opencut and underground operations are likely to be finalised in the coming quarter.