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Alkane Resources Ltd Finds Gold-Copper Evidence Of Another Cadia

Alkane Resources Ltd (ASX:ALK, OTCQX:ANLKY) has completed 2 drill programs at the Bodangora and Elsienora gold exploration projects.

The Bodangora Project, located in central west New South Wales produced intercepts such as: 111 metres at 0.61 g/t gold and 0.08% copper from 42 metres, including 4 metres at 9.69 g/t gold.

The small reverse circulation drilling program of 1,761 metres tested the Kaiser target within the Bodangora Project and has confirmed extensive gold and copper mineralisation.

The goal for Bodangora is to be a large standalone porphyry style gold-copper operation, similar to Cadia or Northparkes.

Mineralisation at Kaiser and associated targets Duke, Belgium and Boda, has been identified over a 1,500 metre strike length.

A second 1,594 metre reverse circulation drill program was completed testing the Cuddyong prospect within the Elsienora project.

Mineralisation at Cuddyong has been defined over a 700 metre strike length including 8 metres at 2.78 g/t gold from surface.

Bodangora Project

The Bodangora copper gold project is located circa 100 kilometres northeast of the Tomingley Gold Operations (TGO).

The Bodangora project includes the Kaiser tenement, which form part of the larger project area in

the northern Molong Volcanic Belt (MVB) .

The MVB is host to a number of mineral deposits exemplified by the world class alkalic porphyry deposits within the Cadia Valley Operations of Newcrest Mining Limited (ASX:NCM).

Exploration work at Bodangora have shown similarities to that at Cadia Valley and that the mineralisation is hosted by similar rock types

The recent drilling and the results from the extended induced polarisation survey continue to confirm the project area as a prime target for large tonnage gold-copper alkalic porphyry mineralisation.

Background

Alkane is a multi-commodity company focused in the central west region of New South Wales. Currently Alkane has two advanced projects - the TGO and the nearby Dubbo Zirconia Project (DZP).

Tomingley commenced production early 2014 and cash flow from the TGO has provided the funding to maintain the project development pipeline and will assist with the preconstruction development of the DZP.

Recent developments

Most recently Alkane executed initial documentation for a $14 million credit approved loan and hedging facility with Macquarie Bank (ASX:MQG).

The facility proceeds will be used to complete the definitive feasibility study (NYSE:DFS) for the unground operations at TGO, near mine exploration, to repay the existing $4 million facility and provide expanded working capital.

Alkane has also entered into AUD gold forwards for 48,633 ounces at A$1,715 per ounce, which will support 16 months of strong operating cash flows at the TGO.

Alkane is in the process of seeking to raise $16 million through a pro-rata non renounceable rights issue to progress the DZP.

Analysis

While the focus for Alkane remains the continued operation of its cash cow TGO and the development of the DZP, it continues to develop its exploration portfolio.

Alkane is attempting to identify a large copper gold porphyry at Bodangora, which we know exist in the region thanks to Cadia Valley.

Newcrest drilled intercepts similar to Alkane's of 102 metres at 0.13 g/t gold and 0.40% copper just 200 metres from the core of the system (296 metres at 4.41 g/t gold and 1.02% copper).

The Bodangora and Elsienora gold exploration projects are two more sources of interesting new flow for Alkane.

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