The Gold Report - Wed, May 24, 2017

Rare Earths and Gold Projects Advancing in Australia

A recent report by Edison Investment Research has Alkane Resources back on track at its Tomingley Gold Operations after disruptive rains, and development is continuing at the multi-commodity Dubbo Project.

alkane jet engine.jpg

Edison Investment Research re-initiated coverage on Alkane Resources Ltd. (ALK:ASX; ANLKY:OTCQX) on May 15. The firm noted that while Alkane had a challenging H1/17 because of heavy rainfall at the Tomingley Gold Operation (TGO)—four times the average rainfall, which affected operations—Alkane's Q3/17 results showed a return to profitable operations for the project located in central-west New South Wales (NSW), Australia. According to Edison, "as weather conditions improved in NSW, Q317 gold production recorded a q-o-q increase of 59%, with 18,721ozs Au produced at AISC costs of A$1,201/oz."

Exploration has become a focus for the TGO, noted Edison: "This is not only to replenish depleted reserves, but also to gain greater confidence in planning for building out a UG [underground] mining phase at Wyoming and possibly also either at Caloma or Caloma Two." According to Alkane, TGO is an important revenue stream "to fund corporate and exploration expenditures."

Alkane's flagship is the Dubbo Project, also located in New South Wales. According to Alkane, the Dubbo Project hosts "one of the world's largest in-ground resources of zirconium, hafnium, niobium, yttrium and rare earth metals."

Edison stated that "the longstanding investment case for Alkane Resources is tied to the development of the Dubbo Project (DP), a strategic project in that it carries a multitude of key speciality metals outside of the dominant supplier, China. These metals feed not only into a wide range of green technologies and electric vehicles, but also into defence technologies that do not wish to be subjected to Chinese export controls, in whatever form they take. . .Alkane continues to progress its flagship DP, with financing to follow a finalisation of bankable studies into the project's revised modular design (by its consultant Outotec, due later in 2017)."

Alkane has a pilot plant facility at ANSTO, near Sydney. Edison stated that the plant "has provided the company with a crucial tool to tailor the DP's products to meet the ever-changing landscape of specialist metal applications alongside the development of the DP's front-end design. The use of the ANSTO pilot plant facility has allowed Alkane to develop its product suite at minimal cost."

The research firm noted that the multi-commodity DP "will extract and sell 12 of the 15 lanthanide group elements. . .the DP will also produce a highly pure form of chemical zirconia (free of the element hafnium, which itself will form a distinct revenue stream to service the growth in demand seen particularly in the aerospace sector) and zirconium basic carbonate, as it is the preferred feedstock material for use in a range of downstream industrial applications. The DP will also produce ferro-niobium, with this output already subject to a binding offtake agreement with German company, Treibacher Industrie." The elements that Alkane will produce at DP are in demand for clean energy, nuclear power generation, electric cars, jet engines and medical devices.

Managing Director Ian Chalmers stated that "the world class Dubbo Project is construction ready awaiting financing, and will become a strategically important producer of a number of metals required for modern technologies. Unlike other companies looking to develop similar projects, Alkane has profitable gold operation and maintains active exploration programs for copper and gold."

1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsor of Streetwise Reports: Alkane Resources. Streetwise Reports does not accept stock in exchange for its services. Click below for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. publishes interesting contributor articles in addition to its own content. We have not verified any of the above details.

Sign-up at (or for our Small Cap Stock Observer newsletter, and to set-up your own My Portfolio, My Watchlist & Alerts and News by Email preferences, or to post at our Bulletin Boards. Free!

Please note that nothing in this report should be taken as a recommendation in any way, and that everything from is subject to the terms of our Privacy Policy and Disclaimer.

comments powered by Disqus

Detailed Quote Portal

symbol lookup | (TSX add :ca)

Membership Privileges

  • Investors Guru Small Cap Stock Observer - newsletter emailed monthly!
  • Featured Stock Profiles - emailed on occasion!
  • News by Email - as it's released, according to your My Preferences!
  • My Portfolio - login to view or update your holdings, or have it emailed daily!
  • My Watchlist & Alerts - login to view or update your stock radar list, and set price triggers for email alerts!
  • Bulletin Boards - no need to request boards, just Quote it! Social Sign-on & Share your ideas, observations & trends!
  • Find it all! Find it Fast! Comprehensive stock research webpages. No more endless clicking!

Email: (see Privacy Policy)
Password: (4-15 characters)
Username: (4-15, BB posts etc)

unsubscribe anytime

Bookmark and Share

 Subscribe in a reader

Our Mobile Site