Alkane Resources has kept its eye on mining projects at Tomingley and Toongi near Dubbo despite the ball picking up speed at McPhillamys near Orange.
This week the company told the Australian Securities Exchange (ASX) a 600 metre by 200 metre inner ore zone at the prospect held about three million ounces of gold and 60,000 tonnes of copper.
The first resource estimate for McPhillamys was a “very good start” in the process of determining its economic potential, Alkane’s managing director Ian Chalmers said yesterday.
But that process, he said, was in the hands of Newmont Australia Limited which had earned a 51 per cent interest in the Orange District Exploration Joint Venture, which includes Alkane’s Molong and Moorilda tenements, taking in McPhillamys.
Alkane retains 49 per cent up until Newmont delivers to it a bankable feasibility study, at which time it secures 75 per cent.
“They are doing all the work and providing all the funding,” Mr Chalmers said of the subsidiary of the Newmont Mining Corporation, based in the US and considered the world’s largest gold producer.
He said it was “optimistic” to think McPhillamys could be in production and providing a cash flow within three or four years.
Alkane has also told the ASX of progress of the Tomingley Gold Project (TGP) near the village of Tomingley and the Dubbo Zirconia Project (DZP) at Toongi.
A definitive feasibility study for the TGP, with the potential to produce up to 60,000 ounces a year, is nearing completion, while Alkane hopes to sign off on the equivalent for the DZP late this year.
The TGP is based on a current gold resource of 840,000 ounces and the DZP a world-class resource of zirconium, hafnium, niobium, tantalum yttrium and rare earth elements. The deposit also contains uranium.
A $3.3 million “commercial ready” grant from AusIndustry in 2006 has helped Alkane build and operate a demonstration pilot plant to test its world-first technique for recovering DZP products.
Alkane is also exploring for gold at Cudal, along with copper at Galwadgere within its Wellington Project, and gold and copper at the historic Bodangora workings, also near Wellington.
This story Administrator ready to work first appeared on Nanjing Night Net.