Company News Summary
Alkane Resources Receives NSW State Approval for Tomingley Gold Project
Original announcement: State approval for Tomingley Gold Project
Alkane Resources advised that it has received approval from the NSW Department of Planning and Infrastructure for the Tomingley gold project, a new gold development planned to commence production in the second half of 2013 based on an 812,000oz (12.6Mt @ 2.0g/t) resource. Gold production is expected to be an average of 50-60,000oz per annum over the base case of 7.5 years, although the target life is 10+ years. $570m in revenue is expected over the base case life of the mine, providing an anticipated $200m in cash flow ($20-30m per annum). The detailed design for the process plant is well advanced and procurement of long lead time capital items, such as the ball mill and water supply, is already proceeding. Operating costs are currently being updated and will be incorporated into the financial model.
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