New High-Grade Domain Discovered at Cuffley

Alkane Resources Limited has reported drilling results from the Cuffley Lode and Sub-KC domain at its 100%-owned Costerfield gold-antimony underground mine in Victoria, Australia. The program scope included 23 growth and infill holes totaling 3,255m at Cuffley, and 17 holes totaling 11,873.6m at Sub-KC. The Sub-KC work comprised four regional target-testing holes covering approximately 3,705m and growth/infill drilling covering approximately 8,168m.

Highlighted intercepts at Cuffley include AD270, which returned 580.9 g/t Au and 24.0% Sb over 0.61m (ETW 0.54m), including 0.25m @ 1,360 g/t Au and 19.7% Sb. Other notable results included AD265 with 168.9 g/t Au and 33.5% Sb over 0.90m (ETW 0.78m); AD292 with 60.1 g/t Au and 15.2% Sb over 1.26m (ETW 1.17m); and AD275 with 124 g/t Au and 48.6% Sb over 0.23m (ETW 0.22m). Four Cuffley holes exceeded 10 g/t AuEq over mining width, while four more exceeded 2 g/t AuEq over mining width.

At Sub-KC, highlighted intercepts included CSK044 with 28.2 g/t Au over 0.99m (ETW 0.82m); CSK043 with 73.2 g/t Au and 18.8% Sb over 0.19m (ETW 0.18m), and 192 g/t Au over 0.17m (ETW 0.07m); and CSK048 with 16.1 g/t Au and 12.7% Sb over 0.37m (ETW 0.34m).

A new high-grade pod in the previously low-grade Cuffley infill area is described as "readily accessible" and is being incorporated into the mine schedule. Regarding Sub-KC target testing, holes drilled approximately 400m north found the Lyre Fault stepped eastward and faulted out much of the favourable fold limb, with only moderate Adder Fault grades. Holes drilled approximately 300m south found an intact anticline but no ore-grade intercepts.

Alkane Resources Limited (ALK) is a producing company, not a junior explorer. The firm generated FY26 net profit after tax of A$228.7M, holds approximately A$432M in cash, and has a market capitalisation of roughly A$2.46B. At this stage, a drill release only moves the needle if it changes reserves, mine life, or the production profile materially.

The Cuffley pod is a near-mine infill discovery located between historical high-grade panels, directly adjacent to existing development, and is being added to the mine schedule. This may supplement near-term Costerfield feed with high-grade ore. However, the volume is likely small, characterized by sub-metre veins, 18 intercepts in a small area, and tightly clustered collars. Even a generous interpretation of tens of thousands of tonnes at several g/t AuEq is incremental relative to Costerfield's 44–48 koz AuEq/yr and the group's 168 koz AuEq/yr. Additionally, Sub-KC target-testing holes failed to find repetitions north or south, which tempers the "district-scale" growth framing.

The stock ran from approximately $1.52 on Aug 13 to $1.80 on Aug 21, an 18% increase in a week, into the FY26 record earnings, maiden dividend, and $50M buyback. This rally did not occur specifically into this Cuffley release, which came after the Aug 21 close. This release does not clear a new embedded bar; it is consistent with, but not transformative beyond, what the price assumes.

Alkane Resources Limited (ALK) is a Perth-based gold and antimony producer operating three wholly owned mines. The Tomingley mine in New South Wales, Australia, features open pit and underground operations targeting approximately 83,000 ounces of gold in fiscal year 2026. The Costerfield mine in Victoria, Australia, is an underground gold-antimony operation expected to produce approximately 44,500 ounces of gold equivalent in FY26 and is the subject of the current release. The Björkdal mine in Sweden is an underground gold operation projected to yield approximately 40,800 ounces of gold in FY26.

The company’s development assets include the large Boda-Kaiser gold-copper porphyry project, which holds a 14.7 million ounce gold equivalent resource and is currently in the scoping study phase with a permitting path to final investment decision around 2031. Other development assets include the Northern Molong Porphyry Project, Peak Hill, and an earn-in joint venture with Nagambie Resources.

In fiscal year 2026, Alkane reported record production of 168,337 gold equivalent ounces, generating A$935.8 million in revenue and A$228.7 million in net profit after tax. The company held A$438.9 million in cash and bullion and remained debt-free, aside from small equipment finance. Alkane also declared a maiden 2 cents per share dividend and a A$50 million share buyback.

For fiscal year 2027, the company has provided guidance for production of 163,000 to 177,000 ounces of gold equivalent at an all-in sustaining cost of A$2,900 to A$3,200 per ounce. Growth capital expenditure is estimated at A$160 million to A$190 million, with exploration spending projected between A$45 million and A$53 million.