Alkane Resources has identified a previously unmined high-grade gold and antimony zone at its Cuffley Lode within the Costerfield project, with assay results revealing spectacular grades. The new discovery is being fast-tracked into the mine schedule, promising to bolster production at this Victorian underground operation.
- Discovery of new high-grade gold-antimony pod at Cuffley
- Exceptional assay results including 1360 g/t gold over 0.25m
- 23 new drill holes confirm mineralisation in previously overlooked zone
- Additional high-grade intercepts extend Sub-KC domain at depth
- New Cuffley pod incorporated into current mine plan
Breakthrough Discovery at Cuffley Lode
Alkane Resources (ASX:ALK) has struck gold, literally, with the identification of a new, high-grade zone within the Cuffley Lode at its Costerfield gold-antimony project in Victoria. The discovery comes from 23 diamond drill holes in an unmined area sandwiched between historically mined high-grade zones, overturning earlier assumptions that the area contained only low-grade mineralisation due to a crosscutting fault.
The standout intercepts are nothing short of spectacular, including a blistering 1360 grams per tonne (g/t) gold over 0.25 metres and a broader 580.9 g/t gold with 24% antimony over 0.61 metres. Other notable hits include 168.9 g/t gold and 33.5% antimony over 0.9 metres, and 124 g/t gold with 48.6% antimony over 0.23 metres. These grades place the new Cuffley pod among the highest-grade intersections at Costerfield to date.
Extending Mineralisation at Depth in Sub-KC Domain
Meanwhile, 17 additional drill holes targeted the Sub-KC domain beneath the Augusta mine and Costerfield property, confirming further high-grade gold shoots at depth. Highlights include 192 g/t gold over 0.17 metres and 73.2 g/t gold with 18.8% antimony over 0.19 metres. The Sub-KC system remains open for growth, with ongoing structural analysis guiding future drill targeting.
Alkane’s Managing Director Nic Earner emphasised the significance of revisiting old geological models: "This discovery of unmined high-grade material directly adjacent to one of Costerfield’s top-shelf historical orebodies showcases the importance of Alkane’s directive of revisiting and challenging old models and preconceptions surrounding mineralisation to extract value."
Geological Context and Mining Integration
The Cuffley Lode sits within the Central Corridor of the Costerfield Dome, a structural high hosting Silurian marine siltstones and turbiditic sediments. The mineralisation style is classic for Costerfield, quartz-carbonate veins grading to massive stibnite, with gold hosted in both quartz and stibnite phases. The newly discovered pod lies adjacent to existing infrastructure, facilitating its rapid integration into the current underground mine schedule.
The Sub-KC domain lies down-dip and is structurally linked to Cuffley by the King Cobra Fault thrust. Mineralisation there occurs within a complex fault and fold system, with veins exhibiting multiple generations and orientations. Alkane’s drilling has begun to unravel this complexity, with initial target testing revealing structural repetitions that could unlock further resources.
Robust Quality Assurance and Future Exploration
Alkane’s drilling and sampling protocols adhere to industry best practices, with diamond core samples assayed using fire assay and photon assay technologies at accredited laboratories. Quality control includes certified reference materials and blank samples to ensure data integrity. The company’s chief geologist, Chris Davis, has verified the results in line with JORC and NI 43-101 standards.
Looking ahead, the new Cuffley pod is already scheduled for mining, while the Sub-KC domain offers considerable upside potential. Alkane plans to continue drilling, likely from surface or via new underground development, to improve intersection angles and extend these high-grade zones further.
This discovery adds to Alkane’s growing portfolio of assets, which includes the Tomingley and Björkdal gold mines and the Boda-Kaiser gold-copper project. Following a record FY26 performance with a 590% surge in net profit and maiden dividend declaration, Alkane is leveraging its expanded resource base for sustained growth.
Bottom Line?
Alkane’s new high-grade discovery at Cuffley could meaningfully extend mine life and production, but further drilling is needed to define the full scale and continuity of this bonanza-grade zone.
Questions in the middle?
- How will the new Cuffley pod impact Alkane’s production guidance and cash flow forecasts?
- What are the geological controls limiting the extent of the Sub-KC domain, and can they be overcome with future drilling?
- Could the structural complexity at Costerfield hide additional high-grade pods yet to be uncovered?