Tomingley Gold Mine in New South Wales Readies for Construction

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Researched by Industrial Info Resources (Perth, Australia)--The $116 million Tomingley gold mine received approval from the government of New South Wales (NSW) in February 2013. The mine will join other gold producers in the state when construction kicks off soon. Alkane Resources (ASX: ALK) has been developing the project for more than four years, and the mining lease was granted in August 2012. The mine site is located about 50 kilometres south-west of the town of Dubbo in regional NSW and will provide its residents with numerous opportunities for employment.

The mine is expected to employ about 350 people during its construction phase and 120 people during its operational phase, with an estimated mine life of seven to 10 years. "The approval process has been long and painstaking and he is confident the mining approval process is watertight," said NSW Minister of Resources Chris Hartner.

Initial mining operations will consist of three open pits for the first three to four years before an underground decline is taken up. The processing plant will be designed to handle approximately 1million tons per year of ore to produce 70,000 ounces of gold with a conventional carbon-in-leach gold recovery circuit. A 46-kilometre water supply pipeline from the town of Narromine to the mine site and an on-site power substation also are part of total investment for the project. Some of the associated infrastructure, such as the upgrade of primary and secondary road access and commencement of the water and power lines, was already carried out in 2012 to minimize construction delays.

Alkane is expecting the first gold pour by late 2013. The pour will generate cash flow to support Alkane's rare earth Dubbo Zirconia Project, which is currently in the feasibility stage.

Engineering, procurement and construction contractor Mintrex Pty Limited (Perth, Australia) has been involved in the detailed design and feasibility of the project and will be overlooking it during its construction phase.

"The process for the preparation of further tender documents has been initiated, and the whole construction process should take about 11 months," said Mike Sutherland, a project manager for Alkane.

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