Alkane Resources has reached a major milestone with the pouring of first gold at its $116 million Tomingley mine.
The first gold bar, which weighed 8.19kg and contained 230 ounces of gold, follows the successful commissioning of the stripping and elution circuit at the site’s processing plant.
The pour marks the completion of the project’s development with the company stating the focus will now turn to maximising mining productivity, completion and optimisation work in processing and overall production cost management after delivering the mine on time and on budget.
The mine, located just outside of Dubbo, was a hive of activity when Australian Mining visited this earlier this year as the final touches were being implemented to ensure its smooth transition to producer.
The project has a life-span of seven years with gold output expected to exceed 50,000 – 60,000 ounces of gold per year.
And despite the tightening gold prices seen of late, Alkane’s managing director Ian Chalmers said he is optimistic the project will be a success, generating around $25 million in revenue per year.
The mine is expected to have a positive impact on the local economy with the construction of the mine over the past year providing 250 jobs and operations and creating full-time employment for 120 people.
“Alkane enters a new stage of development this year, with gold production now starting and at some stage this year, achieving likely development approval for its Dubbo zirconia and rare earths project,” an Alkane spokesperson said.