Alkane Resources (ASX: $ALK) Quarterly Activities Report highlights

Alkane Resources Ltd (ASX: $ALK) released its Quarterly Activities Report to 31 March 2024, revealing that the gold production at Tomingley was below forecast for the quarter. The site operating cash costs were A$1,953/oz with an AISC of A$2,454/oz, resulting in a site operating cash flow of A$5.9m. The FY2024 guidance for Tomingley remains unchanged at 60,000oz to 65,000oz production at an AISC of A$1,750/oz to A$2,100/oz, with production expected to be at the lower end of guidance and costs at the upper end of guidance. The updated Mineral Resource and Reserve for the Roswell Deposit was also outlined, along with progress on the Tomingley Gold Extension Project and exploration activities.

Executive Commentary on Quarterly Performance and Future Plans

Alkane Managing Director, Nic Earner, acknowledged the challenging quarter at Tomingley due to lower recovery from Caloma Two ore, but expressed optimism as the focus shifts to mining at Roswell, which offers higher grade and higher recovery. He highlighted the completion of concrete works for the paste plant and the nearing completion of concrete works at the process plant flotation and fine grinding circuit. Earner also mentioned the ongoing review of the budget for Tomingley and the expected completion of the updated resource for Kaiser by the end of April. He emphasized the progress in both projects and the anticipation of communicating further progress in the coming months.

Summary of Alkane Resources' Quarterly Report and Future Outlook

Alkane Resources' Quarterly Report revealed challenges in gold production at Tomingley, attributed to lower recoveries from Caloma Two ore, resulting in site operating cash costs at A$1,953/oz and AISC of A$2,454/oz. However, the company remains optimistic about the ongoing mining at Roswell, which offers higher grade and higher recovery. The completion of concrete works for the paste plant and nearing completion of works at the process plant flotation and fine grinding circuit indicate progress in the Tomingley Gold Extension Project. Alkane's exploration activities and investments in other gold exploration and mining companies demonstrate its commitment to growth and expansion. The company's future outlook includes the completion of the updated resource for Kaiser and the scoping study for Boda and Kaiser in the current quarter, with a focus on communicating further progress in the coming months.