Overview of Alkane Resources Ltd's Tomingley Gold Operations update

Alkane Resources Ltd (ASX: $ALK) has revised its FY2024 production guidance for its Tomingley Gold Operations in central west New South Wales. The company now expects to produce between 55,000oz to 58,000oz of gold at an all-in sustaining cost (AISC) of A$2,150/oz to $2,350/oz. The production update comes after Tomingley mined approximately 15,700oz Au and produced 9,260oz Au over April and May 2024. The June quarter production is anticipated to be in the range of 15,000oz to 18,000oz Au, with mined ounces expected to be around 22,000oz to 25,000oz Au, leading to a build in stockpiles and gold-in-circuit. Alkane Managing Director, Nic Earner, mentioned that the Roswell ramp up has not been rapid enough to meet the original guidance, but the operations are now performing well, with ongoing upgrades in progress.

Insight into Alkane Resources Ltd's Tomingley Gold Operations update

Alkane Managing Director, Nic Earner, stated, 'Tomingley is starting to deliver from the Roswell underground. The Roswell ramp up has not been sufficiently rapid for us to meet our original FY24 guidance, particularly given the recovery issues experienced in February from a discrete mining area in Caloma Two, as highlighted in our March quarterly report. Tomingley is now performing well, and the paste plant and flotation circuit upgrades remain on schedule. We look forward to releasing our updated Tomingley 5-year plan shortly.'

Summary of Alkane Resources Ltd's Tomingley Gold Operations update

Alkane Resources Ltd has adjusted its FY2024 production guidance for the Tomingley Gold Operations, now expecting to produce between 55,000oz to 58,000oz of gold at an AISC of A$2,150/oz to $2,350/oz. The company's recent production over April and May 2024, along with the anticipated June quarter production, indicates a shift in the expected output. Despite the challenges faced with the Roswell ramp up, the Managing Director expressed confidence in the current performance of Tomingley and the progress of the paste plant and flotation circuit upgrades. Alkane Resources Ltd also looks forward to unveiling its updated Tomingley 5-year plan, demonstrating the company's commitment to the continued development and growth of its gold operations.