Alkane Resources strikes gold

Company News

by Glenn Dyer

Alkane Resources (ASX:ALK) has made waves with its latest discovery of high-grade gold and copper deposits at the Northern Molong porphyry project in Central NSW. This unexpected revelation challenges industry norms, uncovering a significant high-grade mineralization zone near the surface, contrary to the prevalent deep, low-grade deposits typically found in the region.

The breakthrough results stem from a comprehensive drilling campaign encompassing 12,000 meters of reverse circulation and diamond core infill drilling. Focused efforts across key areas including Kaiser, Boda, and Boda 2.3 have paid off, delivering promising outcomes that surpass previous expectations.

Of notable significance are the intersections at Kaiser, boasting yields of up to 8.05 grams per tonne of gold equivalent, with shallow depths commencing from a mere 41 meters. Impressively sized intersections ranging between 62 and 110 meters have been recorded, exhibiting markedly higher grades of gold and copper compared to previous findings.

Deeper intersections have also been documented, with highlights including one meter at 36.0 grams per tonne of gold equivalent from 190 meters and another at 13.5 g/t from 455 meters. Several intersections surpassing 100 meters further underscore the richness of the discovery, with varying grades of gold and copper observed.

The Boda prospect adds weight to the company's success, with a resource estimate of 583 million tonnes of material boasting 0.34 grams per tonne gold and 0.18% copper. Alkane anticipates a potential upswing in the Kaiser resource following these findings, with an updated mineral resource estimate slated for release in late March or early April.

The anticipated boost in the Kaiser resource will complement the recently revised Boda mineral resource estimate, forming a critical element in the scoping study for potential development.

Alkane remains committed to exploration endeavors, with plans underway to commence diamond core drilling in late February. This strategic focus aims to further delineate deep, high-grade mineralization identified at the Boda 2-3 area.

The groundbreaking discoveries reflect Alkane's unwavering dedication to unlocking the full potential of the Northern Molong project. As further drilling campaigns unfold, the company aims to solidify reserves and advance feasibility studies, signaling a promising future for the project and stakeholders alike.

Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?