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FINALIST: EXPLORER

Easy does it on

maiden Boda resource

by Fraser Palamara

lkane Resources Ltd has been nominated as an Explorer of
Athe Year in GMJ’s annual awards for another consecutive
year, largely due to the anticipation growing around its Boda gold-
copper porphyry discovery in New South Wales.
This time last year, Boda was just celebrating its first birthday in
Alkane’s portfolio and another year on, shareholders continue to
patiently await the unveiling of the maiden resource potentially
this quarter.
Having released another round of drill results in October that Drilling at the Boda discovery continues to build anticipation
exhibits Boda’s growing mineralisation, Alkane managing director for Alkane shareholders awaiting the maiden resource
Nic Earner is confident the long wait will be worth every dollar and
minute spent defining the scope of the discovery. Lower grade stopes were mined late in the quarter with higher
“I look back on the year and I’m very pleased with it because grade stopes to follow this year. Gold sales achieved 13,359oz
everything we said we were going to do, we did,” Earner told GMJ, for $33 million in revenue at an average price of $2,467/oz.
also reflecting on the company meeting production guidance at Tomingley’s guidance for FY22 is 55,000-60,000oz at AISC of
its Tomingley gold mine. “We’re very practical with our goal setting $1,450/oz to $1,600/oz.
and what’s achievable. Such a performance has made Earner smile, but the mine’s
“Over the past year, there was no big ‘hooray’ moment, because longevity due to ongoing extension work has made him most
it was just solid work by our team – getting on with the job. happy.
“We continue to know a lot more at Boda, we’ve expanded “In the past year at Tomingley, we have turned inferred resources
significantly in the area we’re working in. We’re in a position to indicated and then to reserves, built a mine plan and virtually
where, we think by March, we could put out an initial resource. finished all environmental approvals,” he said.
“That would allow us to say to people ‘this is what we think it could “In this gold price environment, we can concretely say we can
be’ and we would then start to have a conversation about what make a lot of money. But more importantly, we can run past
the economics would look like.” 2030. Over the past year, we have really tied a bow on stuff, and
Alkane recently spent $15 million to carry out 12,394m of drilling we hope 2022 to be the year we get final approvals from the
at Boda, which Earner claimed was “money well spent”. Results Government and execute more work.”
received in October from Boda and its regional targets Boda Two, Earner also hopes to see finances approved for the next stage
Boda Three and Kaiser, continue to affirm the size of the prize. of development at Tomingley which is slated to begin this year.
Boda Two and Boda Three in particular are defined by a 1,100m “We’re on track for all of that and I would be incredibly dissatisfied
by 500m gold-copper soil, magnetic and conductive IP anomaly if that wasn’t the case,” he said.
which warrants further drilling. “At Boda, we want that resource out and to take shape on how
Drill hits at Boda denoted 155m @ 0.26 g/t gold from 110m and it could be mined. But perhaps more importantly, we want the
848m @ 0.29 g/t and 0.17% copper from 337m including 103m Australian mining and investment community to understand what
@ 0.77 g/t, 0.41% from 671m. we see. We want it to be self-apparent and that people get it.
“People in exploration know that you’re drilling to say, ‘this is where “If you look at us as a company and you go all the way back,
the edge is, right?’,” Earner said. “You have to drill these holes. we’ve been incorporated since 1969 and listed since the early
From our perspective, because we’re building out that knowledge 1980s, we have always been a company that has put a lot of
and understanding and defining the structure and shape…we’re money into exploration – and periodically monetised that either
very happy with our work over the past year.” by building our own mine or by transacting it.
Meanwhile, Tomingley continues to generate strong revenue for “We’ve always tried for ambitious projects that unlock multiples of
Alkane. Gold production met its forecast for the last quarter of value. This is our next leveraged play on what we think could be
2020, achieving 12,141oz with AISC of $1,531/oz and $1,961/oz. a large multiple return.”

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