Alkane Resources Closes in with Tomingley Gold Project Approval in NSW

By Christine Gaylican,

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Multi commodity explorer and miner Alkane Resources ( ALK ), is edging closer toward development approval for its Tomingley Gold Project ( TGP ).  

The NSW Department of Planning and Infrastructure has said it considers the environmental assessment for the development to be adequate and it will now go on public display.  

Once approval is granted, a 15-month construction phase will begin, leading to possible production by mid-2013. The feasibility study for the TGP envisages production of 50,000 to 60,000 ounces of gold a year, which at current gold prices would generate cash flow of around A$250 million for the project and give an internal rate of return of 32 per cent.  

The NSW government has agreed to provide financial assistance for a portion of water and infrastructure costs for the TGP. The TGP is located close to Dubbo (central west NSW) and will create 100 local jobs during the construction phase and 90 full-time jobs during production. Alkane's other major project in the region is the A$1.2 billion Dubbo zirconia and rare earths project, with the resource for this upgraded earlier this week.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Commodities
Referenced Stocks: ALK , TGP

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