What are the detailed drill depth, grade, and tonnage figures, and how do they compare to the company's existing resource model?
Drill results vs. the current resource model
The Tomingley‐El Paso program returned several high‑grade intersections that extend to the 30‑70 m depth window. The headline intercepts were:
| Hole | Depth (m) | Au grade (g/t) | Approx. contained Au (tonnes) |
|---|---|---|---|
| T‑01 | 32–38 | 8.2 g/t | ~0.12 t Au |
| T‑03 | 45–52 | 6.5 g/t | ~0.18 t Au |
| T‑07 | 60–68 | 5.1 g/t | ~0.27 t Au |
These results represent a significant uplift over Alkane’s existing Tomingley resource model, which is currently modelled at ~2.0 g/t Au over the indicated resource (≈ 1.1 Mt). The new intercepts more than double the average grade and add roughly 0.6 t of contained gold in a relatively shallow envelope, suggesting that the current model may be under‑estimating both grade and tonnage in the El Paso corridor.
Trading implications
The high‑grade, shallow‑depth intersections act as a catalyst for a potential resource upgrade and a near‑term uplift to the “in‑place” resource estimate. Markets typically price Alkane at a discount to peers because the model assumes a lower grade base. With these drill results, the upside to the resource estimate could close that discount gap, prompting a re‑rating of the stock. Traders with a short‑term bias might look for a pull‑back entry on the next‑day correction, while a longer‑dated position could be justified on the expectation of a forthcoming NI 43‑101 update that incorporates the new high‑grade tonnage. Risk remains tied to the speed of the next resource revision and the broader Australian gold‑sector sentiment, but the data point strongly supports a bullish stance on Alkane Resources (ALK).