Australia's Alkane Resources Opens Tomingley Gold Mine

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Researched by Industrial Info Resources Australia (Perth, Australia)--Alkane Resources Limited (ASX: ALK) (Perth, Western Australia) opened its Tomingley Gold Mine in New South Wales (NSW) on March 21. Alkane Resources invited Minister for Resources and Energy, and Special Minister of State in the New South Wales Government, Anthony Roberts for the opening ceremony.

The Tomingley Gold Mine and Processing Plant is located approximately 8 miles (14 kilometers) north of the company's inactive Peak Hill Gold Mine and approximately 31 miles (50 kilometers) southwest of Dubbo. The first gold bar was poured on February 14, with the commissioning of the stripping and elution circuit of the processing plant. Alkane Resources is anticipated to maximize the mining productivity and achieve design capacity by the end of April.

Alkane Resources commenced construction as soon as the mining lease was granted in February 2013 for the Tomingley gold project. The project was completed on time and within the total project budget of US$107.32 million (AUD$116 million) by Mintrex Pty Limited (Perth) and Interquip Pty Limited (Perth). Mintrex was awarded the engineering, procurement and construction management (EPCM) contract for the project's development, and Interquip was the structural, mechanical and piping construction (SMP) contractor.

The Tomingley gold mine consists of three open pit mines: Wyoming One, Wyoming Three and Caloma, with approximately 7.5 years of viable lifespan. The processing plant consists of a 140-ton-per-hour ball mill and a carbon-in-leach processing circuit, with an annual capacity of 1 metric million tons. The mine is estimated to produce 50,000 to 60,000 ounces of gold concentrate annually.

Despite the fluctuation of gold prices, David Ian Chalmers, managing director of Alkane Resources, said he is confident the Tomingley gold mine will be a success and will generate approximately US$23.13 million (AUD$25 million) of revenue annually. The Tomingley gold mine could expand to an underground operation at the Caloma Two deposit. Further development could extend the existing mine life to 10 years.

The development of the Tomingley gold mine has created approximately 250 jobs in the past year during the construction phase, and 125 jobs at the existing mine operations. The Tomingley gold mine operates 24 hours a day, seven days a week, with two shifts a day.

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