PERTH (miningweekly.com) – Gold miner Alkane Resources has unveiled the life-of-mine (LoM) plans for its Tomingley gold operations, in New South Wales, which would see the mine operate past 2030.
Mining at Tomingley is currently conducted from the Wyoming One, Wyoming Three, Caloma and Caloma Two deposits, however, the LoM plan also incorporates the Roswell and San Antonio deposits to the immediate south of the mining lease.
Both Roswell and San Antonio would be mined as opencut and underground operations, starting in 2023.
The current LoM plan estimates that Tomingley will produce some 745 000 oz for the period, with processing ramping up from the current one-million-tonne-a-year design capacity to 1.5-million tonnes a year.
Between 2022 and 2023, the Tomingley mine is expected to produce some 50 000 oz/y to 60 000 oz/y, with production increasing from 60 000 oz/y through to 2024, and reaching between 100 000 oz/y and 115 000 oz/y for 2025 to 2027. Production between 2028 and 2031 would reach between 55 000 oz/y and 65 000 oz/y.
“With existing underground and opencut operations we are well placed to incorporate the new resources defined by Alkane’s exploration team at the nearby Roswell and San Antonio deposits,” said Alkane MD Nic Earner.
“We intend to increase our processing throughput and ramp up production to over 100 000 oz/y from 2025, while continuing production at the current run rate in the interim. With the high-grade Roswell deposit open at depth, there is a real potential for further increases in production in the late 2020s,” he added.
Alkane told shareholders that substantial upside existed to extend the Roswell underground mine and maintain the production level over the 2028 to 2031 period at levels near 100 000 oz to 115 000 oz, and beyond.
The development of the two deposits, along with plant upgrades and other capital would see capital costs increase by some A$87-million, with most of the spend to take place in 2023.
The capital cost will be funded from operating cashflow and debt, Alkane said, with preliminary discussions starting with potential debt providers.
An environmental impact statement is being prepared and will be submitted in the coming quarter, with project approvals expected in mid-2022.