Tomingley Gold gets government go-ahead
Alkane Resources has jumped the last major hurdle in the approvals process for its Tomingley Gold project in central-west NSW. The company anticipates production will commence in the second half of 2013.
With approval granted by the NSW Department of Planning and Infrastructure, only minor approvals from the Division of Resources are outstanding.
Alkane is banking on an 812,000oz resource from 12.6mt at 2.0g/t. Gold production is expected to average 50,000 to 60,000ozpa over a base case of a seven year mine life. However, Alkane said the project’s target life is 10 years plus.
Tomingley’s estimated capital cost is $107m. Alkane expects the project to generate $570m revenue over the base case mine life, which would deliver a $200m cash flow at $20m to $30m a year.
Alkane said detailed design for the process plant is well advanced and procurement of long lead capital items, such as the ball mill and water supply, is underway.
Tomingley could create up to 350 jobs, comprising 200-250 in construction and 100 permanent jobs in mining operations.