The Alkane Resources Ltd (ASX: ALK) share price is in focus after the company announced the discovery of a new high-grade gold and antimony domain at its Costerfield site, alongside impressive drilling results from the Sub-KC area with gold grades reaching up to 580.9 grams per tonne.
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What did Alkane Resources report?
- 23 new diamond drill holes in the Cuffley infill area revealed a new pod of high-grade gold and antimony.
- Significant intercepts at Cuffley included 580.9g/t gold and 24% antimony over 0.61m, and 168.9g/t gold and 33.5% antimony over 0.9m.
- 17 additional holes targeted the Sub-KC domain, with notable results such as 192g/t gold over 0.17m and 73.2g/t gold over 0.19m.
- The new Cuffley pod is accessible from existing mine infrastructure and will be integrated into the mine schedule.
- Further drilling at depth explored structural repetitions and growth potential at Sub-KC.
What else do investors need to know?
This new high-grade discovery sits in an area previously believed to be low-grade due to a crosscutting fault, emphasising the value of challenging established geological models. The Cuffley pod's ease of access from current mine workings means it can be quickly added to production plans.
Additional intercepts in the Sub-KC system point to continued prospectivity, with target-testing holes beginning to test for further 'repeats' of the structural setup that hosts gold and antimony mineralisation.
What did Alkane Resources management say?
Alkane Resources' CEO, Nic Earner, commented:
This discovery of unmined high-grade material directly adjacent one of Costerfield's top-shelf historical orebodies showcases the importance of Alkane's directive of revisiting and challenging old models and preconceptions surrounding mineralisation to extract value. We will continue seeking this new mineralisation alongside generating new targets within our leases.
What's next for Alkane Resources?
The newly identified Cuffley pod will be incorporated into the Costerfield mine plan and is scheduled for production. Alkane sees significant growth potential in the Sub-KC domain, though further drilling will likely require surface-based programs or later mine development to reach optimal angles.
Ongoing exploration across the company's Australian and Swedish assets continues to expand resources, supporting Alkane's growth strategy as a mid-tier gold and antimony producer.
Alkane Resources share price snapshot
It has been a strong 12 months for the Alkane Resources share price. During this time, the gold miner's shares have outperformed the S&P/ASX 200 index (ASX: XJO) with a gain of over 80%.
