Alkane Resources reports a total of 1.97 million ounces of gold in Mineral Resources at its Swedish Björkdal operations, with underground mining ongoing and open pit mining paused until 2027. Exploration highlights suggest promising extensions near existing infrastructure.
- Total Mineral Resources at Björkdal, Storheden, and Norrberget reach 1.97 million ounces
- 71% of resources classified as Measured and Indicated
- Ore Reserves total 543,000 ounces with underground mining continuing
- Open pit mining paused to protect underground operations, planned restart in 2027
- Exploration drilling in FY25 identifies high-grade extensions and growth potential
Overview of Björkdal Resources and Reserves
Alkane Resources Limited has released its updated Mineral Resources and Ore Reserves statement for the Björkdal Mine and associated Storheden and Norrberget projects in Sweden as at 30 June 2025. The combined Mineral Resources stand at approximately 1.97 million ounces of gold, with a substantial 71% classified within the higher confidence Measured and Indicated categories. Ore Reserves, which represent economically mineable material, total 543,000 ounces.
The Björkdal operation comprises both underground and open pit mining, alongside an on-site processing plant. Currently, open pit mining is paused to avoid interference with ongoing underground operations, which continue to supply approximately 82% of the plant feed. Alkane plans to resume open pit mining from 2027, focusing initially on the crown pillar and satellite pits, while stockpiled ore will supplement mill feed through to 2032.
Mining and Processing Details
The underground mine employs longhole stoping with sub-level spacing between 15 and 20 meters, supported by conventional trackless mining equipment. Ore is processed through crushing, grinding, gravity concentration, and flotation to produce gold concentrates sold to European smelters. The plant operates near capacity at roughly 3,750 tonnes per day, with gold recoveries averaging around 85.6%.
Open pit mining, currently on hold, is planned to recommence with waste removal and ore extraction from multiple satellite pits concurrently, ensuring steady mill feed. The final pushback of the crown pillar is scheduled for 2030, coinciding with the winding down of underground operations.
Exploration Success and Resource Growth Potential
Exploration drilling in fiscal year 2025 has yielded encouraging results, including high-grade intercepts near existing underground development and extensions at Storheden and Norrberget. Notable intercepts include 34.2 g/t gold over 9.2 meters in the Lake Zone Skarn and 157 g/t gold over 0.6 meters in the North Zone below marble. These discoveries suggest potential for near-term production additions and longer-term resource growth.
Storheden and Norrberget deposits have been extended down-plunge and along strike, with drilling confirming mineralization continuity and higher grades at depth. While Storheden remains classified as an Inferred Resource pending further drilling, Norrberget’s extension adds valuable high-grade ounces to the project pipeline.
Governance, Environmental Compliance, and Community Relations
Alkane’s resource and reserve estimates have been independently reviewed and certified by competent persons from SLR Consulting, ensuring compliance with the JORC Code 2012 standards. The company maintains robust governance and internal controls over resource estimation and reporting.
Environmental permits are in place for Björkdal, with ongoing monitoring and management of water quality, waste rock, and tailings. The mine operates with a strong social license, engaging with local indigenous groups and communities through compensation agreements and social development programs.
Outlook and Strategic Implications
With a nine-year mine life supported by current Ore Reserves and an additional year from Norrberget, Alkane is positioned to sustain production through a combination of underground mining, open pit restart, and stockpile processing. The promising exploration results provide a foundation for resource growth, which could extend the mine life or enhance production profiles.
Investors and analysts will be watching closely for updates on the timing of open pit mining resumption, environmental permitting progress for Norrberget, and further drilling results that could upgrade resource classifications and add ounces to the reserve base.
Bottom Line?
Alkane’s Björkdal update underscores a stable resource base and operational continuity, but the open pit pause and permitting timelines warrant close market attention.
Questions in the middle?
- When exactly will open pit mining resume, and what are the key risks to this timeline?
- How will ongoing exploration results impact resource classifications and mine life extensions?
- What is the status and expected timing of environmental permitting for the Norrberget deposit?