The Global Mineral Resource (Indicated and Inferred) for the Roswell Deposit has been updated after an additional 7,000 metres of drilling, and now stands at: 14.1 million tonnes grading 2.00g/t gold (904,000oz).
Total contained ounces in Roswell have increased 37% from the previously announced Mineral Resource (ASX Announcement 4 November 2020).
The resource remains open to the north and at depth within the main andesite and the newly defined western monzodiorite.
Total SAR project resources (San Antonio and Roswell) now stand at: 21.4 million tonnes grading 1.90g/t gold for 1.31 million ounces.
Alkane's intention is to develop these resources as soon as possible. The approval process continues with expected Project Approval in mid-2022.
The underground exploration drive development from Tomingley Gold Operations is currently located approximately 1,400 metres north of Roswell.
Exploration drilling is ongoing at the recently discovered McLeans and Plains prospects.
Alkane Resources Managing Director, Nic Earner, said: 'The Roswell Resource continues to grow and, together with San Antonio, and continued reserve replacement at Tomingley underground, is showing the resources that should deliver a further 10+ year mine life for Tomingley.
'In June 2021 we detailed the Life of Mine plan and discussed the upside potential that exists to maintain production at over 100,000 ounces of gold a year not only from 2025, but beyond 2028. This resource upgrade certainly demonstrates that possibility.
'With the Project Approval process well underway we look forward to delivering on this potential for our shareholders, employees and other stakeholders in NSW.'
Geology
The Tomingley gold deposits are interpreted as orogenic gold systems positioned within a major structural zone. This style of deposit is well documented globally with the more significant examples in Australia being the Archean greenstone belts of the Yilgarn Craton in WA and the Paleozoic slate belts in Victoria. The Roswell deposit is hosted in the Mingelo Volcanic Formation, a strongly deformed and hydrothermally altered Ordovician aged belt of volcanics that are predominantly andesitic volcaniclastic breccias, lesser sandstone/siltstone units, lavas and black mudstones.
The volcanics are overlain by the younger Cotton Formation siltstones. The resource drilling program has defined a fault bounded section of volcanic stratigraphy that has been rotated 15 o east from striking approximately north-south. The mineralisation at Roswell is primarily hosted by three 'brittle' volcanic units (2x monzodiorite and an andesite) as per the structural setting observed at the Tomingley gold deposits. These volcanics host structural zones generated by a competency contrast between the 'brittle' volcanics and 'ductile' volcaniclastic sediments. Mineralisation is characterised as similar to the Tomingley gold mineralisation, as quartz-carbonatepyrite-arsenopyrite veins hosted in phyllic altered volcanics. These sheeted quartz veins are orientated as steep east dipping, striking approximately 10o east of north, and are typically constrained within the volcanic units or along their contacts. The mineralisation has been defined by drilling over a strike length of approximately 600 metres and remains open to the north and at depth. The higher grading mineralisation occurs in the southern section, proximal to and truncated to the south by a regional NW trending structure named the Rosewood Fault. The San Antonio deposit is a continuation of the mineralised zone to the south of the fault. The Rosewood Fault is of a similar orientation to the structure that dextrally displaces the Caloma deposits from the Wyoming deposits, positioned in the centre of the Tomingley 'gold camp'. The mineralisation at the Roswell Deposit is displaced by three significant, approximately 4 metres thick dolerite dykes dipping steeply to the NNE, striking WNW. The dolerites postdate the gold mineralisation.
Mineral Resource
The previous Mineral Resource estimation (ASX Announcement 4 November 2020) was calculated on the Roswell deposit with a nominal 20 metre drill hole spacing to depths ranging from 0mRL to -200mRL. The updated Mineral Resource estimation has been calculated using deeper holes extending the Inferred resources to depths to -300mRL. Cut-off grades were determined from the current cut-offs utilised by the Tomingley Gold operations for open cut and underground. An optimised pit shell determined open cut material could be mined to the -100mRL, and the remaining deeper resource could be mined with stopes as at TGO.
Exploration Upside at Roswell
The Mineral Resource remains open at depth with breccia textures as opposed to sheeted veins being observed in the deepest drilling, suggesting the mineralisation may become more focused in high grading breccia structures at depth that can be more easily delineated from the underground mine development than drilling from surface. Other exploration targets are at the poorly constrained northern zone where mineralisation is open at depth and along the andesite contact, where tonnage is low, but may improve at depth and with better geological understanding and further drilling. A newly defined, second monzodiorite (third brittle volcanic host rock at Roswell) was tested by deeper drilling west of the main andesite, defining significant Inferred mineralisation that is open north along strike and at depth.
Classification Criteria
Mineral Resources were classified as Inferred or Indicated to appropriately represent confidence and risk with respect to data quality, drill hole spacing, geological and grade continuity, mineralisation volumes, as well as metal distribution. There is no material classified as Measured. Indicated Mineral Resources were defined where a high level of geological confidence in geometry, continuity, and grade, was demonstrated, and were identified as areas where: - Drill spacing was averaging a nominal 20m, or where drilling was within 20m of the block estimate; - Estimation quality is of high confidence in respect to low kriging variance and - Higher number of samples used to estimate individual domains. Remaining estimated blocks within the defined mineralisation domains were classified as Inferred Resources (this included most blocks in the less well-informed domains and all blocks in the very poorlyinformed domains). The dimensions of the search ellipse were based on the recommended search neighbourhood parameters. All the estimation was based on one search pass with the exception of the western monzodiorite domain required three search passes to block the wireframe
ABOUT ALKANE www.alkane.com.au ASX: ALK
Alkane Resources is poised to become Australia's next multi-mine gold producer. The Company's current gold production is from the Tomingley Gold Operations in Central West New South Wales, where it has been operating since 2014 and is currently expediting a development pathway to extend the mine's life beyond 2030. Alkane has an enviable exploration track record and controls several highly prospective gold and copper tenements. Its most advanced exploration projects are in the tenement area between Tomingley and Peak Hill, which have the potential to provide additional ore for Tomingley's operations. Alkane's exploration success includes the landmark porphyry gold-copper mineralisation discovery at Boda in 2019. With a major drill program ongoing at Boda, Alkane is confident of further consolidating Central West New South Wales' reputation as a significant gold production region. Alkane's gold interests extend throughout Australia, with strategic investments in other gold exploration and aspiring mining companies, including 9.7% of Calidus Resources (ASX: CAI).
Contact:
Tel: +61 418 642 556
CALIDUS RESOURCES LIMITED 
