Alkane Managing director ian Chalmers says widespread exploration is continuing of their resources in the Wellington area including at the Geurie limestone resource near the DZP which will supply the neutralising agent for the DZP process.-
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In its quarterly report issued on Friday the multi-commodity miner and explorer, Alkane Resources (ASX: ALK), indicates a number of news developments from its projects in central west NSW.-
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The Tomingley Gold mine achieved design capacity in May, with gold production for the quarter of 16,348 ounces and sales of 15,576 ounces at an average of A$1,418 per ounce, generating revenue of A$22.1 million a report said.-
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The total cash operating costs (AISC) were A$1,283 per ounce, with these costs expected to reduce this financial year as the processing plant now operates at design capacity and associated operational start-up costs will not be recurring.-
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Site focus to stabilise and optimise the operations continues, and includes the areas of ore blending, stabilisation of processing recoveries, mining fleet productivity and the site's supply chain and logistics.-
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The report said government approval of the Dubbo zirconia and rare earths project (DZP) is expected later this year, the intensity of preparation has increased:-
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· Process optimisation and product development continues-
· Marketing activities in the Quarter included visits to key potential customers in Japan and a major effort in Europe to develop options for zirconium, niobium and rare earth product agreements-
· Products samples were distributed in the US, Japan, China and Europe-
· The Front End Engineering and Design program remains on schedule with engineering and procurement activities expected to be completed in Q4 2014-
· Financing remains focused on selling a small strategic stake in the project and advancing discussions with ECAs (Export Credit Agencies)-
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The quarterly also includes a DZP product pricing update, with Alkane saying that while rare earths prices remained flat for the quarter, the apparent commitment of Chinese authorities to curtail illegal mining, processing and export of heavy rare earths was expected to support prices. The heavy rare earths component will represent 30 per cent of the DZP's revenue.-
