ALK Reported Multiple High-Grade Gold Zones In Tomingley Regional Program

ALK reported Multiple High-Grade Gold Zones in Tomingley Regional Program

On 1 February 2019, Alkane Resources Ltd (ASX: ALK), an ASX and OTCQX (US) multi-commodity mining and exploration company, announced the identification of multiple high-grade gold zones in Tomingley regional program.

To the south of Tomingley Gold Project, on the immediate mine area, there was an extensive regional exploration program to provide additional ore feed, either through open cut or underground, for any future operations at the Tomingley Gold Project. 

There is still a reverse circulation drilling and diamond drilling under progress at Roswell, San Antonio, and El Paso prospects to understand the potential for gold resources.

Towards 3 km, south of the Tomingley Gold Operations, the reverse circulation drilling results from the Roswell prospect confirms multiple high-grade gold deposits.

At hole RWRC023, 4.49g/t of gold was extracted at 39 metres from 123 meters which includes the extraction of 8.43g/t Au at 9 meters from 123 metres. From the same hole, 4.70g/t of gold was extracted at 6 meters from 189 metres and 2.46g/t of gold extraction at 21 metres from 207 metres which includes 4.83g/t of gold at 8 metres from 217 metres. Further extraction of 2.48g/t of gold at 26 meters from 234 meters to reach the end of the hole which includes the extraction of 5.57g/t of gold at 3 meters from 234 meters and 4.63g/t gold extraction at 3 metres from 249 metres.

Based on the results at the Roswell prospect, the significant gold mineralization confirmed the strike length of 350 metres.

There were other drillings as well in the Roswell prospect. However, the other holes terminated in mineralization when the rig intersected the moderate water flows.

Since the inception of ALK, the stock has generated a positive performance of 16.94%. However, in last one year, the stock generated a negative return of 35%.

The Q2 results of FY2019 highlights that there was a net cash inflow of A$22.587 million from the operating activities of the company. Here, the company received revenue worth A$41.248 million in the form of receipts from customers. During the period, the company made payment for exploration & evaluation, production, development, staff costs as well as administration and corporate costs.

Through the investing activities of ALK, there was a cash outflow for the acquisition of property, plant, and equipment and also made investments. As a result, the net cash outflow from the investing activities of ALK was A$9.097 million.

The company received net cash of $0.595 million from the financing activities where it received revenue from the borrowings and also made repayment of borrowings.

By the end of Q2 FY2019, the net cash and cash equivalent with ALK was A$73.699 million.

At present, the market price of the stock is A$0.215 with the market capitalization of A$98.69 million with the PE ratio 4.06x.


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