GOLD NEWS

New NSW gold mine approval for Alkane Resources

Australian junior Alkane resources has received State approvals to go ahead with its new Tomingley gold mine near Dubbo in NSW and is planning to bring it into production by H2 2013.

Author: Andrew Duffy
Posted: Thursday , 02 Aug 2012

SYDNEY (Australian Mining) - 

Alkane Resources says it has received State Government approval for its Tomingley gold project, which will create up to 350 new jobs.

In a statement Alkane said the new gold mine near Dubbo in central-west New South Wales, Australia, would run for around ten years.

Around 200 to 250 of the new positions will be created during the construction phase, with another 100 permanent roles in mining operations.

Almost all of the jobs will be sourced from the mine's local region, and Alkane said Tomingley could be producing gold by the second half of 2013.

The entire project will consist of three open pit mines, and after three to four years an underground operation will also begin

According to the Alkane announcement Tomingley is planned to commence production in 2013 based on an 812,000  oz (12.6 Mt @ 2.0g/t) resource. Gold output is expected to be an average of 50 - 60,000 oz/year over the base case mine life of 7.5 years although target life is 10+ years.

A$570m revenue is expected over the base case life of the mine providing an anticipated $200m in cash flow (A$20-30 million per year).

The project has a recently revised estimated capital cost of A$107M

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.

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