Output from the Tomingley gold operation in New South Wales has dipped slightly in the last 12 months as Narromine Mayor Craig Davies describes the mine’s owner Alkane Resources as a good corporate citizen for the region.

Newly released figures show gold production fell from high levels in the 2023-24 financial year but it still met its production guidance.

The mine delivered strong production in the final quarter of the financial year to meet its updated production guidance of 55,000oz to 58,000oz Au.

Preliminary all in sustaining costs (AISC) are expected to fall within updated guidance (A$2,150/oz to $2,350/oz) for the same period.

FY2023 gold production was 70,253oz (guidance 65,000oz to 73,000oz).

Tomingley produced 57,217oz of gold for the 12 months to 30 June 2024.

It comes after a period where Alkane said that "Roswell ramp-up has not been sufficiently rapid for us to meet our original FY24 guidance, particularly given the recovery issues experienced in February from a discrete mining area in Caloma Two, as highlighted in our March quarterly report," Alkane managing director Nic Earner said.

PHOTO: Nic Earner. Image: Supplied.

But the production levels have since recovered.

2025 production at Tomingley is anticipated to be between 70,000oz Au to 80,000oz

“Tomingley is steadily increasing production from the Roswell underground,” Mr Earner said. “Tomingley is now performing well, and the paste plant and flotation circuit upgrades remain on schedule.

“Alkane’s board and management acknowledge and thank the employees and contractors of the company for their strong and continued commitment to safety, production and exploration performance.

“Tomingley has always been a great mine.

“I think they have found more gold there than they ever expected to”.

Image: Australian Mining Monthly

Cr Davies said Alkane Resources were a "great corporate citizen"

“You are talking about a mine that meant the Newell Highway had to be moved,” said Davies. “Tomingley Mine contributes a great deal to this community”.

Alkane announced in June it was looking to expand key infrastructure at Tomingley, increasing its production to above 100,000oz of gold per year while also expanding the site’s plant to a nominal 1.5 million tonnes per annum.

Alkane also delivered its five-year expansion plan on June 24. The company forecast gold production this financial year to be between 70,000 to 80,000 ounces, which was reconfirmed in Thursday’s announcement.

Alkane reported its unaudited cash, bullion, and listed investments position at June 30 was $54.5 million, comprising $45.5 million in cash, $8.7 million of bullion on hand, and $300,000 of listed investments.

"During the quarter, A$42.8 million was drawn from the Macquarie Bank $60 million debt facility," the company said.

Alkane also noted that the cash and liquid assets figure "assumes no value for shares in Calidus Resources Ltd, as receivers and administrators were appointed for Calidus on June 29, 2024."