Alkane Resources advances Storheden towards potential 2029 production - ICYMI

Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) earlier this week increased the Mineral Resource at its Storheden gold deposit in northern Sweden to approximately 212,000 ounces, reinforcing the deposit’s potential to supply higher-grade satellite ore to the nearby Björkdal operation.

The updated estimate comprises an Indicated Resource of 1.07 million tonnes grading 2.51 grams per tonne gold for 87,000 ounces and an Inferred Resource of 1.85 million tonnes at 2.11 grams per tonne for 125,000 ounces.

The update delivered Storheden’s first Indicated Resource, while inferred contained gold increased by around 26% from the previous estimate of 99,000 ounces.

Managing director and CEO Nic Earner said the result improved both the size and quality of the resource, with material moving into the higher-confidence Indicated category and the overall grade increasing from the previous estimate of about 1.7 grams per tonne.

“What we really like about this is we have long stated that what we’re trying to do at Björkdal is bring on supplementary ore sources that will allow us to increase the overall grade going through the mill,” Earner said.

Storheden is around 700 metres north of Björkdal’s main deposits.

The location could allow the company to integrate the deposit into the existing operation, which processes approximately 1.4 million tonnes annually.

Björkdal produced slightly more than 41,000 ounces in the previous year, and Alkane Resources is seeking to lift annual output beyond 50,000 ounces.