Alkane Resources reports gold 1 km below Peak Hill pit in deep drilling

Alkane Resources Limited ASXALK TSEALK OTCMKTSALKRY reported on Wednesday that hole PHD084 returned 153 metres at 0.11 grams per tonne gold beneath the Proprietary pit at Peak Hill. The result identifies mineralisation about 1 kilometre vertically below the pit, giving Alkane a deeper target for a 6,600-metre program planned for November.

Shares traded lower at A$1.72 in Sydney at 12:48 p.m. AEDT on Thursday ASXALK.

The 1,651-metre hole tested for a copper-gold porphyry beneath the former mine in New South Wales, but did not reach an intrusion. Alkane commissioned a study to assess how close possible porphyry intrusions lie to the hole before further testing that target.

The planned drilling will test the gap between PHD084 and the Proprietary inferred resource, assessing whether grades continue at depth. The company said the lower grades could reflect a transition toward a porphyry setting or a hole on the edge of the system.

The broad interval also averaged 0.02 per cent copper and included 4.8 metres at 0.46 grams per tonne gold. Copper in that included run averaged 0.06 per cent, according to the Oct. 14 release.

A separate interval returned 6.4 metres at 0.42 grams per tonne gold from 1,000.6 metres. It included 2 metres at 1.02 grams per tonne gold.

The reported lengths are down-hole intervals from a single diamond-core hole. Alkane interpreted alteration at depth as similar to that mapped at surface, indicating vertical continuation of the previously mined epithermal system.

The deep hole was supported by an A$165,000 grant awarded in 2025 through the NSW Critical Minerals and High-Tech Metals Exploration Program. It was designed to look beneath zones interpreted as conduits for a possible porphyry system.

"The drilling highlights the potential for mineralisation to continue at significant depth beneath Peak Hill and identifies a substantial area for further exploration," managing director Nic Earner said in the release.

The release cites an existing inferred resource of 1.02 million tonnes grading 3.29 grams per tonne gold and 0.15 per cent copper beneath the pits. The deeper hole ended about 800 metres below that resource, leaving the intervening area for further testing.

Read more: P2 Gold identifies new gold-copper unit within Sullivan PEA pit shell

Alkane owns Peak Hill outright and keeps the former open-pit mine under care and maintenance. The project lies about 10 kilometres south of its operating Tomingley Gold Operations.

In its Oct. 9 update, Alkane reported A$440 million in cash and bullion at Sept. 30, alongside A$16 million in equipment finance.

Alkane is scheduled to release its September-quarter activities report on Oct. 23.