Alkane Resources Ltd (ALKEF)

[iPrelude]

Quarterly Activities Report to 31 March 2019
Tomingley Gold Operations
? Development of the underground operation continues on budget and on schedule.
? Quarter Results
? Gold production was above forecast at 10,669 ounces.
? Site operating cash costs were A$800/ounce with AISC of A$956/ounce.
? Gold sales were 10,791 ounces for revenue of A$19.9M at an average price of
A$1,841/ounce.
? Guidance for FY19 has increased with production of 42,000 to 47,000 ounces of gold at an AISC
of A$950 to A$1,100 per ounce.
Corporate
? Cash, bullion and listed investments position totalled A$78.8M
o A$72.4M in cash, bullion on hand at fair value of A$1.8M, and $4.6M of listed investments
at market value.
? Continues to hold ~10.2% of ASX listed gold developer Calidus Resources Ltd (Calidus).
? Continuing to seek further investment opportunities.
Exploration
? 45 RC drill holes for a total of 9,843 metres testing the gold resource potential of the Roswell and
San Antonio targets were completed. Significant broad high grade gold intersections were
recorded at both prospects over a strike length of 1.5 kilometres and highlight the potential for
this discovery to extend the mine life at TGO, subject to successful approvals.
? A substantial resource drill out program is planned to commence as soon as practical.
Dubbo Project
? Offtake discussions continue to be held with third parties, with commitment dependent on
customers, particularly their view of supply risk from within China.
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