Deep Drilling Intersects Epithermal Mineralisation 1 km Below Proprietary Pit at Peak Hill

Alkane Resources Limited (ALK) reported results from a single diamond drill hole, PHD084, at its Peak Hill Gold Project in New South Wales. The hole was collared at the site and drilled to a total depth of 1,651 meters to test for a copper-gold porphyry beneath the high-sulphidation epithermal Peak Hill system. The company stated that the hole "did not resolve the target" and "was not deep enough to transect the phyllic alteration or lithocap to an underlying porphyry intrusion."

Reported intercepts from the drill hole include: * 6.4 m @ 0.42 g/t Au and 0.01% Cu from 1,000.6 m, including 2 m @ 1.02 g/t Au and 0.01% Cu from 1,005 m. * 153 m @ 0.11 g/t Au and 0.02% Cu from 1,427 m, including 23 m @ 0.25 g/t Au and 0.03% Cu from 1,476 m, including 4.8 m @ 0.46 g/t Au and 0.06% Cu from 1,477.9 m.

The full table also lists numerous smaller intervals up-hole: 3 m @ 0.40 g/t Au (192 m), 7 m @ 0.03 g/t Au (944 m), 2.2 m @ 0.05 g/t Au / 0.12% Cu (1,083.8 m), 4 m @ 0.04 g/t Au (1,587 m), and 1.3 m @ 0.29 g/t Au (1,642 m).

The 153-meter interval is described as the interpreted "1 km depth extension" of the epithermal system below the Proprietary open cut. However, the release conceded that assays are "at lower grades than seen within the drilling approximately 1km above within the core of the deposit," suggesting the tenor may simply reflect "the periphery."

The NSW Critical Minerals grant of $165,000 part-funded the hole. Alkane plans 6,600 meters across six holes from November 2026, with assays expected in 2027. A study has also been commissioned on possible "pencil" porphyry intrusives near PHD084.

The existing resource at Peak Hill stands at 1.02 Mt @ 3.29 g/t Au and 0.15% Cu, equating to 108 koz Au (Inferred, 2 g/t Au cutoff, 2018).

Alkane Resources Limited (ALK) is a producer operating three mines—Tomingley, Costerfield, and Björkdal—with a FY26 net profit of A$228.7m and revenue of A$935.8m. The company holds A$454m in cash, bullion, and listed investments, alongside a maiden dividend and a A$50m buyback, against a market capitalization of approximately A$2.25bn.

Peak Hill’s entire existing resource consists of 108 koz Au (1.02 Mt @ 3.29 g/t), representing roughly 4% of a single year's group gold-equivalent production. This is dwarfed by the Boda-Kaiser project (multi-Moz AuEq) and the three producing mines. A single failed porphyry probe at 0.11 g/t Au does not alter the scale, grade, mine life, or net asset value of the portfolio.

The porphyry hunt at Peak Hill remains an early-stage, grant-funded, blue-sky option with no demonstrated geophysical or assay-supported high-grade core. The 6,600 m follow-up constitutes the real test, with assays not due until 2027.

There is no embedded anchor for this specific hole, as there is no prior comparable intercept on this target with gram-metres to beat. The stock has drifted down from A$2.03 on 18 Sep 2026 to A$1.65 over the past month, indicating it is not priced for a Peak Hill discovery. Consequently, there is no material negative from an expectation gap, but equally no positive: the result is a technical miss with sub-economic grades.

The outcome is immaterial to the equity, though mildly negative in signalling terms as the primary target failed and the secondary "extension" proved to be barren rock. This is a science hole, not value.

Alkane Resources Limited (ASX: ALK; TSX: ALK; OTCQX: ALKRY) is an Australia-based gold and antimony producer that operates three wholly-owned mines across two continents following its August 2025 merger with Mandalay Resources. The company’s producing assets include the Tomingley open pit and underground gold mine in New South Wales, which is adjacent to Peak Hill and hosts the Newell Highway realignment for San Antonio; the Costerfield underground gold-antimony mine in Victoria, described as the group’s high-grade, high-margin asset; and the Björkdal underground and open pit gold mine in Sweden.

Development efforts are focused on the Boda-Kaiser gold-copper porphyry project in Central West NSW. This multi-Moz AuEq resource was the subject of a July 2024 Scoping Study outlining a 20 Mtpa operation with an approximate 13-year mine life, producing roughly 159 koz of gold per year plus 35 kt of copper per year over the first five years. The project carries an approximate 24% internal rate of return at A$3,500/oz gold and A$15,000/t copper, with a final investment decision targeted for 2028. Exploration activities cover the Northern Molong Porphyry Project surrounding Boda-Kaiser, the Peak Hill site, Storheden at Björkdal, and a 40 km earn-in joint venture with Nagambie Resources near Costerfield.

Financial data disclosed in prior releases and the company presentation indicates a FY26 net profit of A$228.7m and revenue of A$935.8m. The company held cash, bullion, and listed investments totaling A$454m, with pro forma liquidity of approximately A$549m, including an undrawn A$110m revolving credit facility. The balance sheet is debt-free apart from approximately A$17m in equipment finance. A maiden fully franked dividend of 2.0 cents per share was paid in October 2026, and a A$50m on-market buyback was approved.

The group’s resource base as of 30 June 2026, per the FY26 statement, includes measured and indicated resources of 578.8 Mt containing 8.64 moz of gold, 1.01 Mt of copper, and 42.0 kt of antimony, alongside inferred resources of 275.6 Mt containing 3.76 moz of gold, 0.45 Mt of copper, and 12.9 kt of antimony. Ore reserves stand at 25.5 Mt at 1.7 g/t, containing 1.37 moz of gold and 15.0 kt of antimony. The presentation quotes Boda-Kaiser at 796 Mt at 0.58 g/t AuEq / 0.33% CuEq, equating to 14.7 moz AuEq; this metal-equivalent aggregate is distinct from the raw-grade resource statement.