Alkane Resources has revealed significant high-grade gold and antimony intercepts from near-mine drilling at the Kendal deposit, adjacent to the active Youle mine at Costerfield, Victoria. The discovery extends the known vein system and promises to enhance the mine’s production profile.
- High-grade gold and antimony intercepts extend Kendal vein system
- Development to access Kendal mineralisation commenced late 2025
- Kendal veins richer in antimony than main Shepherd system
- Integration of Kendal resources into Costerfield life-of-mine planned
- Further drilling and exploration ongoing in 2026
Expanding the Costerfield Footprint
Alkane Resources Limited has announced a major step forward in its exploration efforts at the Costerfield Operation in central Victoria, Australia. The company’s recent drilling campaign at the Kendal deposit, which lies adjacent to the currently mined Youle deposit, has uncovered substantial high-grade gold and antimony mineralisation. This near-mine discovery significantly extends the known size of the vein system, revealing mineralised zones that historic mining operations, active between 1861 and 1939, had not detected.
High-Grade Intercepts Highlight Potential
The Kendal veins have returned some exceptional assay results, including intercepts such as 132.2 grams per tonne (g/t) gold with 19.8% antimony over nearly 2 metres and an extraordinary 267.5 g/t gold with 5.6% antimony over 2.3 metres. These grades are notable not only for their richness but also because the antimony content is significantly higher than that found in the Shepherd vein system, which currently supplies much of Costerfield’s ore. The combination of gold and antimony grades in Kendal veins suggests a valuable new source of ore that could enhance the operation’s economics.
Strategic Development and Integration
Recognising the importance of these findings, Alkane commenced development to access the Kendal system in late 2025. This development work is ongoing, with the company prioritising the integration of the newly defined mineralisation into the existing Costerfield mine plan. The goal is to incorporate Kendal’s resources into the life-of-mine strategy, thereby extending mine life and providing a steady supply of high-grade ore to the processing plant.
Geological Insights and Historical Context
The Kendal deposit is structurally complex, situated on the western limb and hinge of the Costerfield Anticline. The mineralisation occurs in a series of steeply dipping veins controlled by axial fabrics and fault systems. Modern drilling techniques, including close-spaced diamond drilling, have allowed Alkane to delineate 25 individual veins over a strike length of 600 metres and vertical extents up to 200 metres. This detailed geological understanding contrasts with the limited methods available to miners in the 19th and early 20th centuries, explaining why significant mineralisation remained undiscovered.
Looking Ahead
Alkane plans to continue drilling at Kendal throughout 2026, focusing on infill and extensions, as well as exploring underexplored areas such as the Costerfield Main reef. The company is also advancing other nearby deposits like Brunswick South and Cuffley, aiming to build a robust pipeline of resources. With a strong balance sheet and a portfolio of producing mines in Australia and Sweden, Alkane is well positioned to capitalise on these exploration successes.
Bottom Line?
Kendal’s high-grade veins could be a game-changer for Costerfield, but the market will watch closely as resource integration and mining development unfold.
Questions in the middle?
- How will the Kendal deposit impact Costerfield’s production profile and mine life?
- What are the timelines and costs associated with fully developing the Kendal system?
- Could further drilling reveal additional high-grade extensions beyond current Kendal boundaries?