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Alkane Resources: Quarterly Report to 31 March 2012

 

April 27, 2012 (Source: Alkane) — Dubbo Zirconia Project (DZP)

Enhancements to rare earth recovery circuit to optimise recoveries – early results indicate significant improvements for important heavy rare earth elements

Product development continues and MOU discussions for the rare earth output are progressing well

Further process improvements have also been identified and will be trialled on the demonstration pilot plant

A Planning Focus Meeting with several State Government and Local Government agencies held on site at Toongi

A deep diamond core hole completed at Toongi and reconnaissance RC drilling at nearby Railway deposit – possible resource expansion, analysis under way

Rare earths prices stabilise but all prices substantially above feasibility study of September 2011

Tomingley Gold Project (TGP)

The Caloma deposit resource upgrade has delivered a 69% increase in total ounces to:

5.45Mt grading 2.1g/t for 369,400 ounces

Increasing the total for TGP resource by 24% to:

12.59Mt grading 2.0g/t for 811,700 ounces

Development approval of the project is still awaited from the NSW Department of Planning and Infrastructure

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