Videos

Alkane Resources Ltd managing director Nic Earner talked with Proactive about the company’s new agreement with Nagambie Resources Ltd covering a staged earn-in and strategic placement over the Nagambie Mine gold-antimony project in Victoria.

“The purpose is to clearly try and define a resource of significance,” said Earner. He noted that the Nagambie project, which includes an inferred resource with notable grades of gold and antimony, is situated in a historically rich mining area. The project also holds potential synergy with Alkane’s Costerfield operations, particularly if processing capacity becomes available in the future.

Alkane Resources Ltd (ASX: ALK) managing director Nic Earner talked with Proactive about the company’s record-breaking December 2025 quarterly results, which showcased significant production growth across all three operating assets.

Alkane Resources (ASX:ALK, OTC:ALKEF) delivered 43,663 gold-equivalent ounces in the quarter — the highest in its history — with mine operating cash flow reaching $133 million. This supported a $58 million increase in cash and bullion, driven by stronger gold prices and improved operational performance.

Alkane Resources managing director Nic Earner joins Proactive to reflect on a milestone year, marked by the completion and integration of the Mandalay Resources merger. He also discusses production performance, balance sheet strength, investor misconceptions and what shareholders can expect from Alkane in the first half of 2026.

Alkane Resources has successfully completed its merger with Mandalay Resources, creating a debt-free gold producer targeting 160-175,000 ounces annually across three strategic mining jurisdictions.

The combined entity operates mines in Australia (Tomingley & Costerfield), and Sweden (Björkdal), providing investors with geographic diversification and operational risk mitigation in an increasingly volatile global environment.

The company has eliminated its Macquarie debt facility while allocating over $80 million toward growth capital and exploration programs. Managing Director Nic Earner emphasizes the integration challenges, noting the need to harmonize “distributed management structures and styles” while adapting to dual ASX and TSX reporting requirements for both Australian and North American investor bases. Alkane’s three-asset portfolio offers compelling diversification benefits.

Tomingley receives $50 million in growth capital for open-cut development, while Costerfield, the highest-grade operation producing 45-50,000 ounces annually, benefits from a $25 million exploration program targeting resource expansion. The Swedish Björkdal operation operates a substantial 1.4 million ton mill capacity, currently underutilized but positioned for expansion. The elevated gold price environment has fundamentally transformed mine economics, enabling access to previously uneconomical mineralization. As Earner notes, “there may be mineralization at a different price you would not have bothered with, whereas now you’re getting it.”

Looking ahead, Alkane maintains disciplined acquisition criteria, requiring any new development to achieve production by 2027. The company targets three M&A categories: merger-of-equals transactions, developers requiring capital for near-production assets, and distressed producers facing capital constraints. With proven operational excellence—missing guidance only once in 14 years—and a clear path to exceeding 180,000 annual ounces through organic growth, Alkane positions itself as a consolidation leader in the sector’s ongoing transformation.

Alkane Resources (ASX:ALK) has successfully completed its transformative merger with Mandalay Resources, establishing a dual ASX and TSX-listed gold and antimony producer operating three mines across Australia and Sweden.

The strategic combination creates a mid-tier producer generating over 160,000 gold equivalent ounces annually with robust cash flow of nearly $100 million over the past twelve months.

The merged entity operates geographically diversified assets including the Tomingley gold mine in New South Wales, Costerfield gold and antimony mine in Victoria, and Björkdal gold mine in northern Sweden. This diversification across premier mining jurisdictions provides operational stability while reducing single-asset dependency risks that plague many smaller producers.

Management has outlined a clear three-pillar growth strategy focused on maximizing value from existing operations, pursuing strategic acquisitions of 80-120,000 ounce annual producers, and achieving market re-rating through enhanced scale and liquidity. CEO Nic Earner emphasized the company’s commitment to operational excellence, noting “We have a culture within the group of making sure we deliver on guidance,” with Alkane meeting production targets in all but one year since 2014.

The merger provides significant financial strength with pro forma cash of A$218 million and no meaningful debt obligations, enabling flexible capital allocation for organic growth and strategic acquisitions.

Near-term catalysts include completing highway relocation at Tomingley, developing the True Blue extension at Costerfield, and optimizing higher-grade opportunities at Björkdal, supported by a $40 million annual near-mine exploration budget.

Management believes the combined entity’s production profile and cash generation capabilities position it for valuation re-rating, with peer comparisons suggesting companies of similar scale typically trade above 1.4-1.5 billion Australian dollars in market capitalization.

The dual listing strategy aims to broaden the investor base and improve liquidity, potentially facilitating inclusion in relevant mining indices and access to passive investment flows.

Alkane Resources Ltd managing director Nic Earner talked with Proactive about the company’s recent high-grade drilling results at the Costerfield gold project and the completed merger with Mandalay Resources.

Speaking from the Noosa Mining Investor Conference, Earner explained that many ASX investors were seeing Costerfield results for the first time, as previous disclosures were made through Mandalay’s TSX listing. “You have nearly an ounce per tonne across full mining widths… these are phenomenal grades,” he told Proactive.

Costerfield, located near Bendigo in Victoria, is a high-grade, narrow-vein underground mine. Earner described the site as “very reliable, very profitable, generating a lot of cash at the moment.” He said the asset had not been widely appreciated by Australian investors due to its Canadian reporting history.

Earner also confirmed that the merger between Alkane and Mandalay received over 99% approval from shareholders and is now effectively complete, with only final steps such as TSX listing logistics and board appointments remaining. He pointed out the combined entity would have produced 161,000 ounces and generated nearly 100 million dollars in cash flow over the past year.

Alkane Resources Ltd managing director Nic Earner talked with Proactive about recent developments across the company’s operations, including progress on its proposed merger with Mandalay Resources, performance at Tomingley, and ongoing exploration at the Northern Molong Porphyry Project (NMPP).

Earner reported that the company met the bottom end of production guidance, delivering just over 70,000 ounces. He noted, “The run rate out of Tomingley for this half of the year has been well into the 70,000 ounces … very, very happy about that.”

Supporting this production level, Alkane’s processing infrastructure has ramped up, with the pace plant now fully commissioned and flotation and fine grind circuits operating well.

He also outlined continued drilling at the NMPP, particularly the Boda-Kaiser corridor.

On the proposed Mandalay merger, Earner confirmed shareholder votes are scheduled for July 28, with court ratification expected August 1 and finalisation on August 5. He highlighted that post-merger, the pro forma company is expected to have over AUD 140 million in net cash and target annual production of between 160,000 to 200,000 ounces gold-equivalent.

The merger aims to create what Earner described as a “powerhouse company,” with Mandalay tracking ahead of its production guidance and contributing significantly to the combined entity’s financial strength.

We invited Frazer Bourchier, President & CEO of Mandalay Resources Corp. (TSX: MND | OTCQB: MNDJF) to talk to us about the company’s rationale for a recently announced merger with Alkane Resources. We also discuss Mandalay’s impressive revenue growth and large cash position, and what the company plans to do with capital allocation.

Frazer Bourchier, President & CEO of Mandalay Resources, and Nic Earner, Managing Director of Alkane Resources sat down with Mark Bunting on RCTV to discuss their merger of equals.

Interview with Nick Earner, MD of Alkane Resources and Frazer Bourchier, President & CEO of Mandalay Resources

Alkane Resources (ASX:ALK) and Mandalay Resources (TSX:MND) have announced a strategic “merger of equals” that will create a significant mid-tier gold producer.

The all-share transaction values Mandalay at A$559.1 million ($357.8 million), with Mandalay shareholders receiving 55% ownership of the combined entity and Alkane shareholders retaining 45%. The merged company will operate under the Alkane Resources name, trading on both the ASX and TSX exchanges. It will maintain a diversified portfolio of three producing mines – Tomingley (Australia), Costerfield (Australia), and Björkdal (Sweden) – with an anticipated annual production of 160,000-180,000 gold equivalent ounces.

Financial projections for the combined entity are robust, including over $100 million USD in cash, zero debt, and approximately $200 million USD in annual free cash flow. This represents a cash flow multiple of approximately 3:1, compared to the industry standard of 4-5x EBITDA. “This company will have over $100 million US in net cash positive with no debt,” noted Frazer Bourchier, President and CEO of Mandalay Resources, highlighting the strong financial foundation of the merger.

A key strategic rationale for the combination is achieving “capital relevance” through a pro-forma market capitalization of approximately $650 million USD. This scale should qualify the company for inclusion in both the ASX 300 index and the GDXJ (VanEck Junior Gold Miners ETF), potentially attracting institutional investors previously unable to invest due to size limitations.

The merger has received unanimous board approval from both companies and secured voting support agreements from key shareholders. Shareholder votes are expected in June 2025, with transaction closing anticipated by August 2025.

The combined entity will pursue a disciplined capital allocation strategy focused on organic exploration, M&A opportunities, and potential shareholder returns, operating with a philosophy of empowered site-level leadership and minimal corporate oversight.

Alkane Resources Ltd managing director Nic Earner talked with Proactive about recent high-grade gold intercepts and ongoing resource expansion at the Tomingley gold operations in New South Wales.

Earner detailed strong results from underground drilling at both the Caloma and Roswell zones, with intercepts showing multiple grams per tonne over substantial widths. “We’ve had some very, very high-grade hits… tens of metres at plus ten grams in Roswell,” he noted, highlighting the significant contribution these results will make to near-term reserve updates and future production planning.

The company is confident these results will support mine life extensions well into the 2030s. Reserve and resource updates, including for Caloma One and Caloma Two, are expected in the August–September period, following analysis of the June 30 data.

Earner also touched on Alkane’s recent financial performance, stating: “It’s been a great quarter… we had a great cash build,” helped by strong production and a high Australian-dollar gold price. He confirmed guidance remains on track, with 17,500 ounces produced and expectations of reaching 19,000 ounces by quarter end.

Alkane continues to advance permitting for the highway relocation and is actively progressing exploration across both the Boda-Kaiser project and Tomingley region. The company is also evaluating organic growth and potential collaboration opportunities.

Alkane Resources, an ASX-listed gold producer operating in New South Wales, is capitalizing on record-high Australian gold prices of around A$4,600 per ounce.

The company has positioned itself for strong performance with recent operational improvements and a strategic hedging approach.

For FY2025, Alkane expects production to be in the lower range of its 70-80,000 ounce guidance, with all-in sustaining costs (AISC) between A$2,400-2,600 per ounce. Production is projected to be closer to 80,000 ounces in FY2026, with AISC expected to decrease to around A$2,000 per ounce after completion of development work in the new mining area.

The company has recently completed significant infrastructure investments, including a flotation and fine grinding circuit that has increased gold recoveries by 7%, along with a new pace carbon-in-leach plant. While these investments have resulted in higher near-term costs, they are expected to improve long-term operational efficiency. Alkane’s hedging strategy leaves two-thirds of its production exposed to current high gold prices, with only one-third hedged at A$2,850 per ounce through June 2027.

At current spot prices, this results in an average realized gold price of approximately A$4,000 per ounce. The company’s flagship Tomingley Gold Operations, including its underground mine and satellite deposits of Roswell and San Antonio, demonstrate significant exploration potential. Since 2013, the operation has exceeded initial expectations, having mined about 650,000 ounces from an initial 370,000-ounce mine plan, with substantial reserves still remaining.

Financially, Alkane maintains a strong position with A$40 million in cash and bullion as of December 2024, expected to increase in the current quarter. The company’s debt structure includes A$45 million in bank debt, with A$5 million scheduled for repayment by June 2025. Looking ahead, Alkane is developing a new open pit mine alongside its underground operations, which should provide additional operational flexibility.

The company’s growth strategy is supported by extensive exploration upside, with its underground operations and satellite deposits remaining open at depth.

The broader market environment appears favorable for Alkane, with gold prices at record highs in Australian dollar terms, driven by global economic factors including monetary stimulus, inflation concerns, and geopolitical tensions.

As an Australian producer, Alkane benefits from both the high gold prices and the stability of operating in Australia’s established mining jurisdiction.

Alkane Resources, an ASX-listed gold producer operating in New South Wales, is capitalizing on record-high Australian gold prices of around A$4,600 per ounce.

The company has positioned itself for strong performance with recent operational improvements and a strategic hedging approach.

For FY2025, Alkane expects production to be in the lower range of its 70-80,000 ounce guidance, with all-in sustaining costs (AISC) between A$2,400-2,600 per ounce. Production is projected to be closer to 80,000 ounces in FY2026, with AISC expected to decrease to around A$2,000 per ounce after completion of development work in the new mining area.

The company has recently completed significant infrastructure investments, including a flotation and fine grinding circuit that has increased gold recoveries by 7%, along with a new pace carbon-in-leach plant. While these investments have resulted in higher near-term costs, they are expected to improve long-term operational efficiency. Alkane’s hedging strategy leaves two-thirds of its production exposed to current high gold prices, with only one-third hedged at A$2,850 per ounce through June 2027.

At current spot prices, this results in an average realized gold price of approximately A$4,000 per ounce. The company’s flagship Tomingley Gold Operations, including its underground mine and satellite deposits of Roswell and San Antonio, demonstrate significant exploration potential. Since 2013, the operation has exceeded initial expectations, having mined about 650,000 ounces from an initial 370,000-ounce mine plan, with substantial reserves still remaining.

Financially, Alkane maintains a strong position with A$40 million in cash and bullion as of December 2024, expected to increase in the current quarter. The company’s debt structure includes A$45 million in bank debt, with A$5 million scheduled for repayment by June 2025. Looking ahead, Alkane is developing a new open pit mine alongside its underground operations, which should provide additional operational flexibility.

The company’s growth strategy is supported by extensive exploration upside, with its underground operations and satellite deposits remaining open at depth.

The broader market environment appears favorable for Alkane, with gold prices at record highs in Australian dollar terms, driven by global economic factors including monetary stimulus, inflation concerns, and geopolitical tensions.

As an Australian producer, Alkane benefits from both the high gold prices and the stability of operating in Australia’s established mining jurisdiction.

Nic Earner, Managing Director at Alkane Resources (ALK) presents at the Bell Potter Unearthed Conference 2025.

Alkane Resources Ltd (ASX:ALK) managing director Nic Earner talked with Proactive’s Tylah Tully about the company’s quarterly activity report.

In what he said was a “significant quarter”, Earner highlighted the successful commissioning of two key circuits, including the flotation and fine grind circuit, designed to enhance gold recovery by approximately 7%.

“To date, we’ve had sometimes seven but we’ve averaged about five as we commission that circuit,” he said of the recovery improvements.

Earner discussed the challenges and successes of the quarter, noting the completion of significant capital projects totalling more than $70 million.

He also addressed a drop in production due to operational adjustments during the holiday season but assured investors that production and recovery rates were expected to improve in the coming quarters.

Looking ahead, Alkane Resources anticipates steady growth in production and cash flow over the next 18 months, bolstered by its newly implemented systems. Earner expressed optimism, stating that the company is well-positioned for a strong performance in the latter half of the year.

View Alkane Managing Director Nic Earner’s presentation from 15m 20s.

Alkane Resources, an Australian gold producer, presents a compelling investment case based on its strong margins, fully funded organic growth pipeline, and potential for a valuation re-rating. Despite generating robust cash flow and advancing a clear path to increased production scale, Alkane trades at a significant discount to peer companies, offering investors an attractive entry point.

At current gold prices around A$4,000 per ounce, Alkane is generating solid margins with all-in sustaining costs (AISC) of A$2,250 per ounce in the most recent quarter. AISC is expected to drop to A$2,000 per ounce next year as development spending rolls off, further boosting profitability.

The company also has a prudent hedging program in place through June 2027, covering 35% of production at an average price of A$2,840 per ounce to protect downside risk while retaining 90% exposure to rising gold prices. Alkane is investing aggressively in organic growth projects to expand production from around 80,000 ounces currently to a targeted 100,000 ounces per year.

Key initiatives include commissioning a paste plant and flotation circuit to improve recoveries, developing the Roswell deposit, expanding the processing plant, establishing open pits at San Antonio with over 180,000 ounces, and ongoing exploration to extend resources.

With A$6 million budgeted for exploration, A$35 million for the plant expansion, and A$50 million for San Antonio, Alkane is fully funded to deliver this growth at current gold prices while still generating a return. The company also sees potential to extend mine life into the early 2030s. Despite this impressive growth profile, Alkane trades at a steep discount to peer companies generating similar levels of cash flow.

Managing Director Nick Earner sees a certain inevitability that Alkane will re-rate higher as it demonstrates consistent cash generation. Beyond the near-term growth pipeline, Alkane offers additional upside potential from accretive M&A to diversify its single-asset risk and increase scale. The company is also starting to contemplate a capital return strategy, which could include dividends and share buybacks, as cash flow ramps up significantly from FY2026 onwards.

The current macro environment appears extremely supportive for gold prices and producers like Alkane. Unprecedented global stimulus, geopolitical tensions, debt accumulation, and the likelihood of a persistently weak U.S. dollar should underpin demand for gold as a safe haven. At the same time, a constrained supply response from gold miners focused more on gaining scale than growing production limits downside risk.

In summary, Alkane Resources offers a timely opportunity to invest in a growing gold producer at an attractive valuation with multiple upside drivers. The company’s strong margins, fully funded organic growth, exploration potential, and optionality for M&A and capital returns position it well to deliver value to shareholders. As Alkane demonstrates its cash generation potential, the current valuation discount to peers appears likely to close, rewarding investors.

Alkane Resources Ltd (ASX:ALK) managing director Nic Earner sits down with Proactive’s Tylah Tully to run through the company’s latest quarterly update. At its Tomingley Gold Operations in Central West NSW, gold production for the quarter reached 18,418 ounces, in line with the forecast.

Site operating cash costs were A$2,000/ounce and the All-In Sustaining Cost (AISC) was A$2,200/ounce. The site generated A$19.2 million in operating cash flow and gold sales totalled 19,000 ounces, generating A$65 million in revenue at an average price of A$3,400/ounce.

The full-year FY2025 production guidance remains unchanged at 70,000 to 80,000 ounces of gold, with an AISC between A$2,400 and A$2,600/ounce. The higher AISC is attributed to increased decline development costs. At its Tomingley Gold Extension Project construction on the paste plant and the process plant’s flotation and fine grinding circuit is on schedule for commissioning in Q4 2024. Mineral resources and ore reserves for Tomingley were re-estimated, resulting in an 11% net increase in reserve ounces.

Total mineral resources are estimated at 24.27 million tonnes grading 2.12 g/t gold for 1.656 million ounces with ore reserves at 11.76 million tonnes at 1.9 g/t for 705,000 ounces. Early-stage exploration at the Rockley Project, 35 kilometres south of Bathurst, identified base metal alteration and generated new prospective targets.

Exploration activities around Boda-Kaiser focused on re-assaying and passive seismic surveys and the drilling of bores for groundwater monitoring.

Cash, bullion and listed investments totalled A$50 million at the end of the quarter, with an additional A$15 million available from the undrawn portion of the A$60 million project finance facility. Significant investments of A$30 million were made in Tomingley’s expansion projects, nearing completion by the end of the year.

Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) managing director Nic Earner​​​​ joins Proactive’s Tylah Tully to discuss the company’s progress on regional exploration efforts at the Tomingley Gold Project (TGP) in Central West New South Wales.

Work at TGP is aimed at extending the life of the Tomingley Gold Operations (TGO), currently planned to operate until 2032. The TGP spans 440 square kilometres and includes the TGO’s open pit and underground operations. A processing facility expansion to a capacity of 1.75 million tonnes per year is planned by FY26.

Exploration success has previously added resources at the Roswell and San Antonio deposits, now integrated into TGO, with Roswell’s underground ore processing starting in April 2024.

Ongoing exploration focuses on new targets within TGP, including Plains, El Paso and Allendale. Recent activities include airborne geophysical surveys, aircore drilling, reverse circulation (RC) and diamond drilling, which have revealed promising assay results and new geological insights. Survey data and drilling have identified new structures, prospective volcanic belts and potential porphyry sources, prioritising future exploration targets.

Alkane Resources (ASX:ALK) is an emerging Australian gold producer that presents an intriguing investment opportunity for those seeking exposure to the precious metals sector.

With a clear growth strategy and potential for significant cash flow generation, Alkane is positioning itself as a noteworthy player in the mid-tier gold mining space. The company’s primary asset, the Tomingley Gold Operations in New South Wales, is currently undergoing expansion. Alkane is in the final stages of developing a new mining area, which includes underground mining at the Roswell deposit and the commissioning of new processing facilities.

This development is set to drive production growth from the current 75,000-85,000 ounces per annum to a targeted 100,000-110,000 ounces by 2027. Nic Earner, Managing Director of Alkane Resources, highlighted the company’s progress: “We’re in the really late stages of developing the new mining area. We are mining underground at Roswell, and we’re about to enter commissioning the paste plant and the flotation circuit. The most important thing about that is we’re 85% of the way through our capital spend.”

This expansion is expected to significantly boost Alkane’s cash flow generation. Management estimates project-level free cash flow of A$60-65 million for 2024, increasing to A$110 million or more in 2025. Importantly, the company anticipates funding its growth plans through operating cash flow, without the need for additional capital raises in the near term. Beyond its producing assets, Alkane holds the Boda Kaiser exploration project, a large copper-gold prospect that could provide substantial upside.

The company is considering bringing in a partner to advance this project, which could unlock additional value for shareholders without diverting resources from the core gold business. Alkane’s long-term strategy involves becoming part of a larger gold producer, potentially through mergers or acquisitions.

This vision aims to create a multi-asset company producing around 250,000 ounces of gold annually, which could attract increased investor interest and potentially lead to a re-rating of the company’s shares. However, investors should be aware of the risks associated with mining operations and the execution of growth plans.

These include potential delays or cost overruns in development projects, gold price volatility, and operational challenges inherent to the mining industry. From a macro perspective, Alkane is well-positioned to benefit from ongoing economic uncertainties and inflation concerns, which historically have supported gold prices. The company’s potential copper exposure through the Boda Kaiser project also aligns with the global electrification trend.

For investors, Alkane Resources offers exposure to a growing gold producer with clear expansion plans, strong cash flow potential, and exploration upside. The company’s focus on organic growth, combined with strategic ambitions for M&A, presents a compelling investment case in the Australian gold mining sector. As with any mining investment, thorough due diligence is essential. Investors should closely monitor Alkane’s progress in achieving its production targets, cash flow generation, and advancement of exploration projects. The company’s ability to execute its growth strategy effectively will be crucial in realizing its potential and delivering value to shareholders.

Alkane Resources Ltd (ASX:ALK) managing director Nic Earner joins Proactive’s Jonathan Jackson to talk about encouraging results from a drilling program at the Rockley Project in Central West New South Wales.

The company completed seven scout slimline RC drill holes, targeting multi-element and multi-point soil and rock chip geochemical anomalies and historical workings. Six out of seven drill holes intersected copper-zinc-lead-silver skarn mineralisation while mapping and rock chip sampling returned significant copper, zinc and lead grades at Apsley, Belmore East and Red Hill prospects as well as the new Stewarts Prospect.

Earner says the company is hoping to uncover a large VMS or skarn copper-gold system and multi-million-ounce deposit like others in the region. The company is well-funded and says the Rockley program is not cash-intensive.

Alkane is planning to further target generative exploration across the next 12 months. This includes mapping, rock chip sampling and soil sampling as well as additional scout drilling planned for Stewarts, Red Hill and Cow Flat South, along with testing ground EM plates generated at Belmore East and Red Hill South.

Earner discussed Alkane’s recent share price movement after it experienced massive volumes of trade over the past seven days.

Alkane Resources Managing Director Nic Earner and Technical Director Ian Chalmers provide an investor briefing following the release of the Boda-Kaiser Scoping Study.

Managing Director Nic Earner provides an investor update following the release of the Company’s plans for the next five years of operation at its Tomingley Gold Operations in the central west of New South Wales.

Alkane Resources (ASX:ALK), an established Australian gold producer, is embarking on an ambitious expansion of its Tomingley Gold Operations in New South Wales. The company aims to increase annual gold production from its current level of 60,000 ounces to 100,000 ounces by 2026, representing a significant 67% boost in output.

The expansion plan, outlined by Managing Director Nic Earner, involves a comprehensive A$132 million investment program. This includes underground development of newly discovered deposits south of the existing mine, new open pit operations, and upgrades to processing facilities. A key component of the expansion is the relocation of a national highway, highlighting the scale and complexity of the project.

Financially, Alkane is well-positioned to execute this growth strategy. The company has secured a A$60 million debt facility, which it plans to upsize to A$110 million. Importantly, Alkane expects to fund a significant portion of the expansion through operating cash flows. Earner projects potential free cash flow generation over the next five years at current gold prices, after accounting for expansion costs.

From a cost perspective, Alkane anticipates all-in sustaining costs (AISC) to average around A$2,000 per ounce (US$1,300-1,350) over the next five years. While costs are expected to be higher in the initial years due to increased development activities, they are projected to decrease below this average in later years, potentially enhancing profit margins.

The current resource base supports a mine life extending to 2032, but Alkane sees potential for further extensions. The company is actively exploring both near-mine and regional targets, allocating A$10 million annually to these efforts. Several opportunities for resource growth have been identified, including depth extensions at existing deposits and potential new underground developments.

As Alkane approaches the 100,000-ounce annual production milestone, it may attract increased attention from institutional investors. Many fund managers have minimum production thresholds for gold mining investments, often around this level. This transition could potentially lead to a re-rating of Alkane’s stock as it enters the investment universe of larger funds.

While the growth prospects are promising, investors should be aware of potential risks. These include execution risks associated with the complex expansion project, gold price volatility, regulatory and environmental factors, and the inherent uncertainties in resource development. In the broader macroeconomic context, gold producers like Alkane are operating in a complex environment. Factors such as inflation concerns, geopolitical tensions, and currency fluctuations continue to influence gold prices. Additionally, industry-wide challenges in replacing reserves and increasing focus on ESG factors are shaping the competitive landscape.

Alkane’s expansion strategy aligns well with these industry trends. By growing production and maintaining competitive costs, the company is positioning itself to capitalize on potential upside in gold prices while building resilience against market volatility.

For investors, Alkane Resources presents an opportunity to gain exposure to a growth-oriented gold producer with a clear expansion plan, potential for increased cash flow generation, and possible re-rating as it reaches a more substantial production profile. However, as with any mining investment, careful consideration should be given to the associated risks and the investor’s own risk tolerance and investment objectives.

At the 121 Mining Investment Conference, Alkane Managing Director Nic Earner talked to Crux Investor about Alkane’s plans for gold production, growth & exploration.

Nic Earner, Managing Director of Alkane Resources, presentation at the 121 Mining Investment Conference in London.

Nic Earner, Managing Director of Alkane Resources Ltd, provided an overview of the company’s operations and financial status at the Proactive One2One Investor Forum.

Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) managing director Nic Earner is back with Proactive’s Elisha Newell after the company posted a resource update for the Northern Molong Porphyry Project’s (NMPP) Kaiser deposit in Central West New South Wales.

The revised figures now indicate an overall resource of 213 million tonnes at a grade of 0.55 g/t gold equivalent, totalling 3.74 million ounces. The update follows an extensive infill drill program, which amalgamated results from 217 holes and nearly 95,000 metres of drilling activity.

The resource update is part of Alkane’s broader revision for the NMPP, including the complementary Boda deposit, which now boasts a global resource of 796 million tonnes at 0.58 g/t gold equivalent for 14.7 million ounces. Of this, 537 million tonnes are categorised as indicated resources and 258 million tonnes as inferred, highlighting substantial deposits of both gold and copper in both camps.

Notably, the metallurgical results from these deposits have supported the development of a viable flowsheet, showing promising recoveries of 81% for copper and 71% for gold at Kaiser, with results slightly higher at Boda.

Earner emphasised the heightened confidence in the Kaiser deposit’s potential, noting the transition of some resources from inferred to indicated categories and improvements in metal grades. Consequently, an upcoming scoping study — expected later this quarter — will further detail the potential economic outcomes and development plans for the Boda and Kaiser districts.

‌Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) managing director Nic Earner joins Jonathan Jackson in the Proactive studio to talk through the company’s latest quarterly and plans for the next. Alkane reported A$30.5 million in gold sales from its Tomingley Gold Operations in Central West New South Wales for the March quarter.

The quarter saw 10,861 ounces of gold produced, which was below the forecast due to lower recovery rates from the Caloma Two ore, with site operating cash costs at A$1,953 per ounce and an All-In Sustaining Cost (AISC) of A$2,454 per ounce. Despite these challenges, the site generated operating cash flow of A$5.9 million, with 10,385 ounces sold at an average price of A$2,933 per ounce, while full year guidance remains the same.

During the quarter, Alkane also released an updated mineral resource and reserve for the Roswell Deposit as part of the Tomingley Gold Extension Project (TGEP). The updated figures for Roswell include 3.9 million tonnes at 1.7 g/t gold for 213,000 ounces in open cut and 5.55 million tonnes at 2.7 g/t gold for 489,000 ounces underground in resources. The reserve estimates are 3.9 million tonnes at 1.7 g/t for 213,000 ounces in open cut and 3.209 million tonnes at 2.3 g/t for 237,000 ounces underground.

Significant infrastructure developments include the completion of concrete works for the paste plant, commencement of stope mining at Roswell and nearing completion of concrete works at the process plant flotation and fine grinding circuit. Exploration efforts continue, particularly at Kaiser within the Northern Molong Porphyry Project, with results from diamond core and RC drilling expected to update the mineral resource by the end of April 2024. A scoping study for Boda and Kaiser is also due in the current quarter.

Financially, the company ended the quarter with A$41.1 million in cash, bullion, and listed investments, plus an undrawn project finance facility of A$50 million, bringing total liquidity to A$91.1 million.

The company holds a 7% share in ASX-listed gold producer Calidus Resources and invested A$31 million in the Tomingley expansion during the quarter.

Alkane Resources Ltd managing director Nic Earner tells Proactive’s Stephen Gunnion the company has reached another milestone at its Tomingley Gold Operations in Central West New South Wales with the transition from ore development to production stoping at the Roswell deposit.

Earner detailed the completion of the exploration drive at Roswell, which had received full approval last year. He highlighted the ongoing vertical development and the commencement of stoping operations, marking a ramp-up phase. The site is set to produce a 23-24,000 tonne stope, followed by a larger phase nearly double in size.

This development supports a planned increase in mining activity to approximately 1.1-1.2 million tonnes per annum by next year. Additionally, Earner noted the construction of a new paste plant for backfill operations, aiming for full recovery with the ore graded over five grams per tonne.

Upcoming newsflow includes the company’s quarterly report this week, the long-awaited Kaiser resource statement for the Bodar and Kaiser exploration deposits, and a scoping study. Earner also mentioned a financial outlook aiming to provide a five-year projection by the end of June.

On the brink of significantly upgrading the mineral resource estimate for its Kaiser deposit in the Northern Molong Porphyry Project in New South Wales, Alkane Resources Ltd (ASX:ALK) managing director Nic Earner takes Proactive’s Jonathan Jackson through the latest drilling results. Alkane has delivered the highest gold grades observed to date at the site. Earner highlights the remarkable findings from the final 12,000-metre round of drilling, which confirmed the presence of high-grade sections and a ‘Boda’ style breccia, intensifying the deposit’s prospects. With these results, Alkane is poised to release an updated Kaiser resource estimate in April, enhancing the already impressive Boda resource figures. Looking forward, the company is conducting a scoping study to assess the mining viability of both Boda and Kaiser, with results expected in the June quarter.

Alkane Resources Ltd (ASX:ALK) managing director Nic Earner sits down with Jonathan Jackson in the Proactive studio to discuss the large increase in reserves at the Tomingley Gold Extension Project, where that increase has come from and what it means for the company’s mining plans. Earner addresses the adjustments in the resource statement compared to previous reports, highlighting the importance of these changes and the factors contributing to them. He also looks at the prospects for further expansion in Alkane Resources’ reserves and resources, examining the potential for growth and the company’s strategies moving forward.

Alkane Resources Ltd (ASX:ALK) managing director Nic Earner joins Proactive’s Jonathan Jackson in the Australian studio to talk about promising from recent infill drilling at the Northern Molong Porphyry Project (NMPP) in Central West NSW. Earner takes us through the highlights of the program and its aims to evaluate the potential of the Kaiser deposit as the company moves towards a gold-copper resource update at NMPP. Results yielded several broad intersections that reveal notable grades of gold and copper and give the company confidence in the continuity and extent of mineralisation across the project. Final results are expected to be available in March and the updated resource completed in March/April.

Alkane Resources Ltd (ASX: ALK) CEO Nic Earner joins Jonathan Jackson to discuss the company’s strong quarter and particularly the development of the Roswell resource. Earner says that extensive infill drilling of the Roswell orebody from underground continues, with around 17,000 metres drilled during the quarter. This drilling will be incorporated into an updated mineral resource in the coming quarter. Earner looks at gold production at the Tomingley Gold Operations as well as the further work being done at the Tomingley Gold Extension Project, which incorporates Roswell. Also, up for discussion is the work being done at the Boda and Kaiser deposits of the Northern Molong Porphyry Project as well as the company’s corporate highlights.

Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) Managing Director Nic Earner speaks to Thomas Warner from Proactive after the gold producer and explorer released fresh results from infill drilling at the Kaiser deposit of its Northern Molong Porphyry Project, following the previously announced resource update from the Boda deposit.

The 45,000-metre drilling campaign at Kaiser has uncovered strong mineralisation within the existing inferred mineral resource estimate (MRE) with a raft of positive results. Earner also emphasises the successful year Alkane has had, including the approval of the Tomingley Extension project and updates to the Boda and Kaiser resources. These developments have shifted the Kaiser resource from an inferred to an indicated category, marking a significant milestone for the company.

Earner concludes the interview by encouraging shareholders and potential investors to look forward to the forthcoming scoping study, which will elucidate the project’s economic potential. He expresses confidence that the study will reveal the project’s value, which he believes is not currently fully reflected in Alkane’s share price.

Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) Managing Director Nic Earner speaks to Thomas Warner from Proactive after the gold producer and explorer announced a revised indicated and inferred mineral resource estimate (MRE) for the Boda Deposit at its Northern Molong Porphyry Project (NMPP) in Central West New South Wales.

A revised indicated and inferred mineral resource estimate (MRE) for the Boda Deposit including Boda 2-3 now stands at 583 million tonnes at 0.58 g/t gold-equivalent (0.34 g/t gold and 0.18% copper) for 10.9 million gold equivalent ounces. This includes 6.38 million ounces of gold and 1.03 million tonnes of copper.

Earner highlights the key change from the original Boda resource: despite a slight reduction in tonnage, the metal grade has notably increased. He suggests that the shift is particularly beneficial as it implies mining lower tonnes for more metal, thereby increasing the potential profit margin.

Furthermore, Alkane is preparing to release updated Kaiser RC drilling results, potentially before Christmas, followed by a resource update in early 2024. He goes on to say that the company is also advancing scoping studies, including metallurgical results and engineering work, which will culminate in detailed mine plans for Boda and Kaiser.

Alongside these developments, Alkane’s Tomingley Goldmine continues to perform strongly, aligning with the company’s guidance and contributing to a successful 2023. Work on project delivery are expected to extend the mine’s life until 2032, staying within budget and schedule.

Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) MD Nic Earner tells Proactive the company has established a viable flowsheet for the processing of ore from the Boda and Kaiser gold-copper prospects within its North Molong Porphyry Project (NMPP) in Central New South Wales. Metallurgical test-work comprising conventional crushing, grinding and flotation circuits achieved overall recovery of 87.4% of copper and 80.9% of gold for Boda and 79.6% of copper and 70.7% of gold for Kaiser. Meanwhile, ALK has also reported further broad copper-gold results from drilling at Kaiser – the objective is to infill the inferred mineral resource estimation at the deposit, which currently contains 2.1 million ounces of gold and 500,000 tonnes of copper.

Nic Earner discusses current activities at Alkane and highlights from the September 2023 quarter.

Alkane Resources Ltd (ASX:ALK) managing director Nic Earner gives Proactive an overview of the company’s September quarter. Describing it as a solid period, he says the company’s met production guidance and the Tomingley Extension Project is well underway with the second vent rise completed at Roswell. Meanwhile, he says infill drilling occurred underground and surface works commenced for the Paste Plant. Earner adds that drilling at Boda and Kaiser continued through the quarter keeping the company on schedule to release the updated Boda resource in the current quarter.

Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) MD Nic Earner speaks with Proactive after reporting extensive high-grade results from the company’s now complete infill drilling program at the Boda prospect within the Northern Molong porphyry project in central NSW. Extending over five kilometres from Kaiser to Boda, through Boda 2-3 and south to Boda 4, the drilling was designed to infill the inferred Boda mineral resource estimation to a nominal 50-metre grid spacing. Earner says Boda continues to evolve towards its potential as a large, tier one gold-copper resource.

Alkane Resources Managing Director, Nic Earner, provided an update on the Australian gold miner in an interview at the Denver Gold Forum conference. Alkane currently operates the Tomingley Gold Mine in New South Wales, which produced around 70,000 ounces in 2021 at an all-in sustaining-cost under A$1,600/oz.

Looking ahead, Earner expects Tomingley production to increase in 2022 and costs to rise to A$1,750-2,100/oz. This reflects inflationary pressures in Australia on items like power, fuel, steel, and reagents. Earner believes cost increases of around 30% represent a new baseline for the Australian gold sector.

Alkane is using cash flow from Tomingley to advance exploration at its Boda-Kaiser copper-gold porphyry project, also in New South Wales. Boda-Kaiser currently hosts about 15 million ounce gold equivalent resources. Upcoming catalysts include a resource upgrade at Boda expected this quarter and initial resources at Kaiser in Q1 2023.

To fully realize Boda-Kaiser’s value, Alkane is considering strategic partnerships, minority investments, or even a potential split into separate gold and copper-focused entities. Earner believes Alkane’s track record of exploration success and experience in project development position it strongly.

The goal remains growing Tomingley’s production profile while advancing Boda-Kaiser to be construction-ready around 2026. This is expected to transform Alkane into a major dividend-paying gold producer. In the interim, Earner stressed profitable gold production and exploration success as key pillars to attracting investors seeking leverage to the upside.

Nic Earner updates us on the history and latest updates for Alkane Resources and the exploration currently underway to expand the resource and the strength of the company. Technical Director, Ian Chalmers was this year’s winner of the Gavin Thomas Mining Award.

Alkane Resources Ltd (ASX:ALK) MD Nic Earner tells Proactive the company has extended the gold and copper mineralised footprint at its Northern Molong Porphyry Project (NMPP) in Central New South Wales with further significant results from the project’s Boda, Boda Two and Boda Three targets. ALK has been running a drill program over a 3-kilometre mineralised zone spanning NMPP’s Kaiser and the Boda targets to prove up a large tier-one gold and copper camp. Core and reverse circulation (RC) drilling is ongoing at Kaiser, while the program at the Boda targets has been completed.

Alkane Managing Director Nic Earner tells ausbiz about the latest quarterly results and future plans for Tomingley.

Mandalay Resources Corporation (“Mandalay” or the “Company”) (TSX: MND, OTCQB: MNDJF) is pleased to provide an update on the Eastern Extension and North Zone drilling programs at its Björkdal operation in Sweden.

Alkane Managing Director Nic Earner tells Proactive the company continues to explore at Tomingley both within its approved mining areas and regionally. He says they uncovered gold at several regional prospects within seven kilometres of the Tomingley processing hub soon after regional drilling kicked off in early 2023.

Alkane managing director Nic Earner tells Proactive that the company’s Tomingley Gold Operations generated more than 70,000 ounces of gold over FY23, meeting the upper end of guidance calculations. The production metrics mean the NSW mine has met or exceeded guidance in every year of operations, while all-in sustaining costs are expected to clock in between A$1,550 and A$1,750 an ounce for the 12-month period. Earner says FY23 was a busy year for Tomingley, characterised by government approval for a project extension and underground development.

Managing Director Nic Earner explains how Alkane manages to consistently meet or exceed production guidance year on year, and outlines future expectations for Tomingley Gold Operations.

This presentation by Alkane Managing Director Nic Earner was filmed at 121 Mining Investment London on 10 May 2023

Alkane Resources Ltd (ASX:ALK) MD Nic Earner talks Proactive through the company’s March quarterly activities. At its flagship Tomingley Gold Operations the company achieved production of 16,641 ounces which met forecasts for the quarter. FY2023 production guidance for Tomingley has now been increased to 65,000 to 73,000 ounces. Also in the period, the company announced an initial inferred mineral resource for Kaiser Deposit of 270 million tonnes grading 0.54 g/t gold equivalent for 4.7 million ounces gold equivalent (480,000 tonnes of copper and 2.05 million ounces of gold).

Alkane Resources Ltd (ASX:ALK) MD Nic Earner tells Proactive the company has entered into an agreement with Sandfire Resources Ltd to acquire two packages of exploration tenements in the Macquarie Arc of New South Wales in return for $1.9 million worth of ALK shares. The two projects will be wholly acquired by Alkane with no underlying royalties or liabilities and are considered to be highly prospective for gold-copper porphyry deposits.

Alkane Resources Limited, Managing Director, Nic Earner and Technical Director, Ian Chalmers provide an investor update covering recent activity including the approval of the extension of the Tomingley gold operation, the release of the first half results for fiscal 2023 and the announcement of the maiden resource estimate for the Kaiser area within the North Molong Porphyry Project.

Alkane Resources Ltd (ASX:ALK) managing director Nic Earner brings Proactive up to speed on a key greenlight for the Tomingley Gold Extension Project. The government’s tick of approval paves the way for the company’s environmental protection licence and mining lease applications, which Earner expects to come to hand mid-this year. Alkane has also struck up a $50 million debt facility with Macquarie and cemented hedging agreements, locking in pricing over 100,000 gold ounces until 2026.