Australian mining company Alkane Resources Limited has reported a major breakthrough in its exploration program at the Björkdal gold operation in northern Sweden. The company announced that recent drilling has more than doubled the tested depth extent of the nearby Storheden deposit, revealing significant new potential for resource growth.
Major Depth and Strike Extension Unlocked
The latest drilling campaigns, focused on depth testing and resource extension, have yielded highly encouraging results. Gold-bearing quartz veins have now been intercepted at a depth of 464 metres, which is a substantial increase from the previously tested depth of only 200 metres. This effectively more than doubles the known vertical extent of the mineralisation.
In addition to the depth expansion, drilling to the east and west has successfully extended the strike length of the known mineralisation to over 2.7 kilometres. Critically, the deposit remains open, with no indications that the gold grade is diminishing at greater depths. This suggests the mineralised system could continue even deeper.
High-Grade Assay Results Highlight Potential
The drilling programs returned several high-grade gold intercepts, underscoring the quality of the discovery. Highlights from the depth testing campaign include:
- 34.3 grams per tonne (g/t) gold over 1.6 metres
- 16.2 g/t gold over 0.70 metres
- 14.0 g/t gold over 1.2 metres
The resource extension campaign also delivered impressive numbers, with intercepts such as 142.0 g/t gold over 0.60 metres and 111.0 g/t gold over 0.50 metres. These high-grade zones are pivotal for the project's economic viability.
The Storheden deposit is situated approximately 600 metres north of the active Björkdal mine. Björkdal is a significant producer, having yielded 1.66 million ounces of gold since operations began in 1988. As of June 30, 2025, it still hosts a substantial resource base of 1.40 million ounces in the Measured and Indicated categories.
Strategic Importance for Future Production
Alkane's Managing Director and CEO, Nic Earner, stated that the results strongly support the view that the wider Björkdal mineral system is vast and underexplored. The company's current strategic focus at Björkdal is on improving mill feed grade by replacing low-grade stockpile material with higher-grade underground ore.
Storheden presents a clear opportunity to establish a distinct new production area alongside the existing operations, directly supporting this corporate goal. The geological interpretation suggests the Storheden vein system is hosted in rock units similar to those at the main Björkdal mine, and the two systems may even converge at depth.
The initial Inferred Mineral Resource for Storheden, estimated in 2025, stands at approximately 99,000 ounces of gold. The latest results, which have significantly expanded the deposit's dimensions, are expected to form the basis for a future resource update and further studies on its potential development into a new mining front for the long-life Björkdal operation.
