Alkane Finds New High-Grade Zone at Costerfield Gold Mine

Alkane Resources found a new high-grade gold and antimony zone at its Costerfield mine in Victoria. The discovery came from 23 growth and infill holes that yielded 18 new intercepts on mineralised structures. One hit at the Cuffley Lode returned 1,360 grams per tonne gold.

The new zone sits directly adjacent a historical orebody that Alkane had not previously mined, Chris Davis, the company's chief geologist, said. He described it as "one of Costerfield's top-shelf historical orebodies" in the press release. "This discovery showcases the importance of Alkane's directive of revisiting and challenging old models," Davis said.

The Costerfield operation has been in continuous production since 2006. Alkane bought the mine from Mandalay Resources in 2020. The company also operates mines in New South Wales and Sweden.

Below the main Augusta mine, the Sub-KC domain also produced ore-grade intercepts. The best of those was a 1.09-metre section grading 413.5 grams per tonne gold equivalent in the 405 Lode. A second hole returned 81.8 grams per tonne gold equivalent over 2.55 metres.

Davis said the structural understanding of the Sub-KC zone is still emerging because limited drilling orientations constrain strike control. Most mineralisation sits in the footwall of the Lyre Fault and diminishes with distance from the fault plane, the company said.

The new Cuffley grade pod has already been added to the Costerfield mine plan and is scheduled for extraction, Davis said. Alkane plans to keep drilling for more, he said. Considerable scope remains for further growth within the Sub-KC domain, though drilling will need to be done from surface or through future development.

Alkane shares trade on the ASX and TSX under ALK and on the OTCQX under ALKRY. The company is a multi-mine gold and antimony producer with a strong balance sheet, according to its market filings.