Alkane Resources uncovers new high-grade gold-antimony domain at Costerfield

Alkane Resources uncovers new high-grade gold-antimony domain at Costerfield

Proactive

Mon, August 24, 2026 at 2:19 AM GMT+3 3 min read

Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) has discovered a new high-grade gold-antimony domain at its Costerfield operation in Victoria, including an exceptional intercept of 580.9 g/t gold and 24% antimony over 0.61 metres at the Cuffley Lode.

The result from hole AD270 included an even higher-grade section of 1,360 g/t gold and 19.7% antimony over 0.25 metres, while other Cuffley drilling returned 168.9 g/t gold and 33.5% antimony over 0.9 metres and 60.1 g/t gold and 15.2% antimony over 1.26 metres.

Importantly for Alkane, the newly identified Cuffley pod sits in an unmined area between the historical Cuffley north and south high-grade panels, is readily accessible from existing underground infrastructure and has already been incorporated into the Costerfield mine schedule.

Regional map of the Costerfield Project in GDA2020 grid showing Alkane tenements and the main corridors of mineralisation identified, highlighting the location of the Cuffley and Sub KC deposits.

Cuffley drilling reveals new high-grade pod

Alkane completed 23 growth and infill holes for 3,255 metres of diamond drilling at Cuffley, generating 18 new intercepts on the mineralised structure.

The program tested a sparsely drilled area previously considered low-grade because of the influence of a cross-cutting fault, instead identifying a new grade pod containing areas of very high-grade gold and antimony.

Four holes intersected mineralisation above 10 g/t gold equivalent over mining width, including 124 g/t gold and 48.6% antimony over 0.23 metres in AD275. A further 4 holes returned more than 2 g/t gold equivalent over mining width.

The discovery is adjacent to historically mined areas of the Cuffley system and demonstrates the potential for additional high-grade material to remain around existing underground infrastructure.

Sub-KC drilling highlights further growth potential

Alkane also reported further high-grade results from the deeper Sub-KC domain below the Augusta mine, where 4 target-testing holes and 12 growth and infill holes were completed.

Significant results included 28.2 g/t gold over 0.99 metres in CSK044, 73.2 g/t gold and 18.8% antimony over 0.19 metres in CSK043 and 192 g/t gold over 0.17 metres in the same hole. CSK048 returned 16.1 g/t gold and 12.7% antimony over 0.37 metres.

Target testing north and south of the main Sub-KC block also provided new structural information that Alkane believes could help guide future exploration.

The company said there is considerable scope to expand the Sub-KC domain, although future drilling may need to be undertaken from surface or from new underground development to achieve improved intersection angles.

Alkane posts record FY26 profit

News at Costerfield comes shortly after Alkane delivered record profit and revenue for FY26, with the strong result prompting the board to declare the company's first dividend and approve an on-market share buy-back of up to A$50 million.

Net profit after tax for the year ended June 30, 2026, surged 592% to A$228.7 million, while revenue climbed 257% to A$935.8 million. Basic earnings per share increased 224% to 17.69 cents.

The result marked Alkane's first full year as a three-mine gold and antimony producer following its merger with Mandalay Resources Corporation in August 2025.

Full-year gold equivalent production reached a record 168,337 ounces, up 140% from 70,120 ounces in FY25.

Earnings were also supported by stronger gold prices, with Alkane achieving an average realised gold price of A$5,664 per ounce compared with A$3,770 per ounce a year earlier.

The company closed FY26 in a strong financial position, holding A$454 million in cash, bullion and listed investments, providing additional balance sheet flexibility alongside the maiden dividend and planned share buy-back.