Alkane Resources’ newly developed Tomingley gold mine in New South Wales poured its first gold bar in mid-February, following successful commissioning of the stripping and elution circuit of the processing plant. The first pour, weighing 8.191 kg and containing approximately 230 oz of gold, was the final milestone in delivering the project on time and on budget.
Tomingley is located in the central west region of New South Wales, 425 km west of Sydney. The medium-sized open-pit and underground project has approximately 921,000 oz of gold in current defined resources and will produce 50,000 to 60,000 oz/y of gold over a minimum mine life of 7.5 years. Alkane is currently targeting eventual mine life of more than 10 years.
The Tomingley CIL processing plant has throughput capacity of 1 million mt/y. Feed grade is 2.00 g/mt gold, and recovery is 93%. Cash operating costs averaged over the 7.5-year minimum mine life are estimated at $A1,000/oz.
In the month leading up to the first gold pour, the Tomingley milling circuit achieved continuous operation at more than 90% of design capacity, with peak rates above design. Alkane said it would focus on maximizing mining and processing productivity.
Alkane has executed a gold hedge of 25,000 oz for Tomingley at A$1,449 for delivery on May 16, with Credit Suisse International. Gold can be sold into the hedge or the contract may be rolled forward depending upon the spot price at maturity.