Alkane Resources Limited (ASX: ALK; TSX: ALK; OTCQX: ALKRY) has unveiled promising exploration outcomes from its ongoing drilling program at the Kendal deposit, located adjacent to the active Youle deposit at the Costerfield Operation in central Victoria, Australia. The company reported high-grade intercepts of gold and antimony, marking a significant advancement in near-mine exploration efforts.
Expanding the Kendal Vein System
The Kendal deposit represents the antimony-rich, up-dip continuation of the high-grade Youle and Shepherd deposits, which are currently under mining operations at Costerfield. Over the past year, infill and extension drilling has substantially expanded the known size of the vein system, both offset from and adjacent to historic mine workings. This drilling has uncovered significant veining that remained undiscovered during the mine's active periods between 1861 and 1939.
Development to access the newly extended Kendal system commenced in late 2025 and continues as extension drilling progresses. The Kendal veins contain areas of exceptionally high gold and antimony grades, historically linked to increased production rates. An animation summarizing these results is available on the company's website at alkres.com.
Assay Highlights from Drilling
Key assay results from the drilling program include intercepts from the 501 vein, situated to the south and immediately above the Youle deposit:
- 132.2 g/t gold and 19.8% antimony over 1.94m (ETW 1.04m) in PD222
- 25.3 g/t gold and 42.8% antimony over 1.71m (ETW 0.97m) in PD220
- 13.5 g/t gold and 22.1% antimony over 2.67m (ETW 1.24m) in AG023
- 25.4 g/t gold and 8.3% antimony over 1.28m (ETW 1.12m) in BC437
- 34.1 g/t gold and 12.9% antimony over 0.76m (ETW 0.69m) in BC112A
From the 520 vein, which spans over 500 meters in strike and locally reaches 200 meters in height:
- 267.5 g/t gold and 5.6% antimony over 2.3m (ETW 1.22m) in BC464
- 143.7 g/t gold and 10.8% antimony over 1.35m (ETW 1.06m) in BC463
- 18.2 g/t gold and 11.9% antimony over 2.44m (ETW 1.92m) in BC466A
Management Commentary
Nic Earner, Managing Director and CEO of Alkane Resources, commented on the findings: "The drilling results obtained from the Kendal deposit over the past year demonstrate the large potential remaining for significant high-grade mineralisation at shallow levels near to the Costerfield mine. Accessing and mining the newly defined mineralisation is a top priority for the Costerfield team and should provide the processing plant with an additional source of high-grade gold and antimony ore for some time to come."
Historical Context of Costerfield
The Costerfield antimony-gold deposit was initially discovered in 1861, with antimony identified in the district as early as 1853 during the McIvor (Heathcote) alluvial gold rush. Prospectors exploring the surrounding hills for primary deposits led to the rapid opening of several lodes along a 3-kilometer corridor. Historical production primarily came from leases at the northern end of the field, including the Costerfield (Main), Bombay, and Minerva mines. Production occurred in two main phases: between 1861-1883 and 1903-1924, with a brief redevelopment attempt from 1933-1939.
Alkane Resources Ltd holds a 100% interest in the Costerfield deposit, continuing its legacy of mining in this historically rich region. The latest results underscore the ongoing potential for resource expansion and operational growth at this long-standing site.
