NEWS: 'Unlimited' Life For New Mine

July 27, 2010 -- (Source: ABC.net.au) -- Two proposed mines in the western New South Wales region are expected to be operating within the next three years.

Alkane Resources is conducting feasibility studies into gold mining at Tomingley near Peak Hill and zirconia at Dubbo.

Managing director Ian Chalmers says changes to markets in China will help efforts to develop the mines.

"Things that they've been doing in the last six months will just ultimately force prices up on those commodities which is good for us," he said.

"As most people would know in the last two or three years we've had increased cost, and not just in the mining industry, but in the agricultural industry and a lot of other places. So, those increased costs, we've just got to look at the revenue and does the project give a proper return?"

Mr Chalmers says the Tomingley project has an expected life span of seven years while the company is predicting the Dubbo mine will be in production for the next 200 years.

Up to 180 staff could be employed at the two sites.

Mr Chalmers says the company plans to hire local people.

"Tomingley looks like probably in the range from 65 to 80. Our philosophy has been that we always try and get the majority of those people from local areas, so that's the target and the same thing with the zirconia project really, we're still talking about the same sort of numbers, maybe 80 to 100 people," he said.

"The nice thing about the Dubbo project is that it's almost an unlimited life."

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