Alkane Extends High Grade Gold Trend at Brunswick South

Alkane Resources Limited has reported results from 91 extension and infill diamond drill holes totaling 28,421 meters at the Brunswick South deposit within its Costerfield Operation in Victoria. The company highlighted high-grade gold and antimony intercepts from narrow veins, including BD468, which returned 50.1 g/t Au and 26.2% Sb over 2.17 m downhole (ETW 1.08 m), and BD433, which returned 109.9 g/t Au and 3.1% Sb over 0.65 m (ETW 0.62 m). Other notable intercepts include BD424 (50.2 g/t Au and 33.3% Sb over 0.86 m, ETW 0.62 m), BD408 (39.8 g/t Au and 0.7% Sb over 1.30 m, ETW 1.15 m), and BD513 in the Kiwi Zone (25 g/t Au over 1.70 m, ETW 1.64 m).

A new parallel structure identified as Brunswick West, located approximately 200 meters to the west, returned BD475 with 8.4 g/t Au and 1.3% Sb over 0.32 m (ETW 0.31 m). Capital development to access Brunswick South is scheduled to begin in the third quarter of 2026, with an updated Mineral Resource and Ore Reserve expected later this year.

Alkane Resources Limited (ALK) reported that the Brunswick South deposit, located 200 meters from existing underground development at its Costerfield operation, features high grades and low incremental capital requirements. The discovery de-risks a future production source and supports mine-life extension at Costerfield, which is Alkane’s highest-margin operation.

As a mid-tier producer with a A$1.8B market cap and a diversified asset base, Alkane’s share price fell from A$1.40 on July 10 to A$1.35 on July 13. This decline suggests the news was largely priced in or that broader gold-price weakness overwhelmed any positive sentiment. For a producer, near-mine infill or extension results rarely move the stock unless they materially change reserves or mine life.

The announcement of capital development in Q3 2026 and a pending resource and reserve update are tangible steps, but they were already flagged in prior releases. For example, the Kendal update in February 2026 showed the deposit’s potential. Thus, the news is incremental rather than transformational.

Alkane Resources Limited (ALK) is an Australian-based gold and antimony producer operating three mines: Tomingley in New South Wales, Costerfield in Victoria, and Björkdal in Sweden. The company’s portfolio was expanded through a merger with Mandalay Resources in August 2025.

Consolidated production for the fiscal year 2025 was approximately 160,000 ounces of gold equivalent (koz AuEq). For fiscal year 2026, the company has issued guidance for production between 160,000 and 175,000 koz AuEq at an all-in sustaining cost (AISC) of A$2,600 to A$2,900 per ounce. As of December 2025, Alkane held A$246 million in cash, bullion, and listed investments, a position that is growing, while maintaining minimal debt.

Costerfield is a high-grade, narrow-vein underground gold-antimony mine that has historically produced more than 900,000 koz AuEq. Its primary near-mine growth targets are the Brunswick South and True Blue projects. Additionally, the company holds the Boda-Kaiser gold-copper porphyry project, which contains a 14.7 million ounce gold equivalent resource, as a long-dated development option.