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Alkane Advances Near-Mine Kendal Deposit with High Grade Antimony-Gold Intercepts at Costerfield

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Rhea-AI Summary

Alkane (OTCQX:ALKEF) reports extensive near-mine high-grade gold‑antimony results from the Kendal deposit at Costerfield, with multiple standout intercepts including 267.5 g/t Au and 50.5% Sb in individual holes.

The Kendal system now spans ~600m strike, 25 delineated veins, and has been accessed for development from existing infrastructure with drilling to continue in 2026.

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Positive

  • Multiple extreme assays including 267.5 g/t Au in BC464
  • Kendal spans ~600m strike with 25 delineated veins
  • High antimony content (examples up to 50.5% Sb)
  • Near-mine access started from existing infrastructure late 2025
  • Continuity demonstrated (520 vein traced ~500m strike, 200m vertical)

Negative

  • No mineral resource reported yet for Kendal pending modelling and reporting
  • Historic intercepts unverified by Alkane and shown for context only
  • Further drilling required with programs expected to resume in 2026

Key Figures

Kendal 501 vein intercept: 132.2 g/t gold & 19.8% antimony over 1.94m (ETW 1.04m) Kendal 501 vein intercept: 29.6 g/t gold & 50.5% antimony over 0.72m (ETW 0.26m) Kendal 520 vein intercept: 267.5 g/t gold & 5.6% antimony over 2.3m (ETW 1.22m) +5 more
8 metrics
Kendal 501 vein intercept 132.2 g/t gold & 19.8% antimony over 1.94m (ETW 1.04m) 501 vein, hole PD22 near Youle at Costerfield
Kendal 501 vein intercept 29.6 g/t gold & 50.5% antimony over 0.72m (ETW 0.26m) 501 vein, hole PD23
Kendal 520 vein intercept 267.5 g/t gold & 5.6% antimony over 2.3m (ETW 1.22m) 520 vein, hole BC464
Kendal 520 vein intercept 143.7 g/t gold & 10.8% antimony over 1.35m (ETW 1.06m) 520 vein, hole BC463
High‑grade 519 vein intercept 52.3 g/t gold & 43.1% antimony over 0.34m (ETW 0.29m) 519 vein, hole BC4681
Kendal 520 vein extent 500m strike & 200m vertical extent Interpreted dimensions of 520 vein
Kendal system strike length 600m strike, ~70m average width Overall geometry of Kendal vein system
Kendal 590 vein intercept 13.6 g/t gold & 16.4% antimony over 2.22m (ETW 1.37m) 590 vein, hole BC418

Market Reality Check

Price: $1.18 Vol: Volume 112,104 vs 20‑day ...
low vol
$1.18 Last Close
Volume Volume 112,104 vs 20‑day average 406,231 (0.28x typical activity), indicating muted trading ahead of this update. low
Technical Price $1.18 trades above 200‑day MA of $0.70, sitting 9.23% below the $1.30 52‑week high and well above the $0.251 low.

Peers on Argus

ALKEF was down 2.48% while peers showed mixed moves: RUPRF +4.5%, SXGCF +5.49%, ...

ALKEF was down 2.48% while peers showed mixed moves: RUPRF +4.5%, SXGCF +5.49%, SNWGF +5.36%, with MWSNF and RSRBF modestly negative. This points to a stock‑specific move rather than a clear sector rotation.

Historical Context

5 past events · Latest: Feb 12 (Positive)
Pattern 5 events
Date Event Sentiment Move Catalyst
Feb 12 HY2026 earnings Positive +4.3% Record HY2026 revenue, EBITDA and net profit with strong production metrics.
Feb 10 Results notice Neutral -0.5% Scheduling announcement for H1 and Q2 FY2026 results and investor call.
Jan 29 Nagambie earn‑in Positive -11.0% Proposed placement and earn‑in on gold‑antimony ground near Costerfield.
Jan 29 Record Q2 operations Positive -11.0% Record Q2 production, strong cash build and reaffirmed FY2026 guidance.
Jan 08 Quarterly production Positive +2.1% Strong quarterly AuEq output and robust cash position with minimal debt.
Pattern Detected

Operational and financial updates have generally been positive, but market reactions are mixed, with record production and strategic deals on Jan 29 seeing -11.02% moves despite strong fundamentals, while record HY results on Feb 12 drew a positive 4.25% response.

Recent Company History

Recent news flow has focused on record production and financial strength. On Jan 8, Alkane reported quarterly output of 43,663 AuEq oz and cash/bullion/investments of A$246M. Two Jan 29 releases highlighted record Q2 FY26 metrics, including site operating cashflow of $133M and full‑year guidance of 160–175koz AuEq, plus a proposed gold‑antimony earn‑in near Costerfield. On Feb 12, HY2026 results showed revenue of $404M, adjusted EBITDA of $185M and net profit of $65M, reinforcing a growth trajectory into which this Kendal drilling update fits as further resource upside.

Market Pulse Summary

This announcement details extensive high‑grade gold‑antimony intercepts at the Kendal system, near t...
Analysis

This announcement details extensive high‑grade gold‑antimony intercepts at the Kendal system, near the operating Costerfield mine, with veins traced over 600m of strike and locally 200m of vertical extent. Recent history shows Alkane delivering record quarterly and HY2026 results, including revenue of $404M and net profit of $65M. Investors may watch for future resource estimates, integration into life‑of‑mine plans, and follow‑up drilling at Kendal and nearby targets.

Key Terms

antimony, stibnite
2 terms
antimony technical
"The Kendal system is the antimony-rich, up-dip continuation..."
Antimony is a metallic element used as an ingredient in alloys, flame retardants, batteries and some electronic components; think of it as a small but critical hardware part that improves strength, safety and performance in manufactured goods. Investors care because changes in supply, mining output or industrial demand can shift its price and affect companies that mine, process or rely on it—similar to how a shortage of a car part can slow auto production and raise costs.
stibnite technical
"grading to massive stibnite towards the centre line of the veins."
Stibnite is a naturally occurring mineral made of antimony and sulfur (chemical formula Sb2S3) and is the main ore from which the metal antimony is extracted. It matters to investors because antimony is a raw material used in flame retardants, batteries, alloys and some electronic components, so discoveries, mining output or supply disruptions of stibnite can influence commodity prices and the prospects of mining and manufacturing companies — like finding a concentrated vein of a useful metal.

AI-generated analysis. Not financial advice.

PERTH, Australia, Feb. 24, 2026 (GLOBE NEWSWIRE) -- Alkane Resources Limited (ASX: ALK; TSX: ALK; OTCQX: ALKRY) (‘Alkane’ or ‘the Company’) is pleased to announce the latest exploration results for the extension and infill drilling of the Kendal deposit adjoining the currently mined Youle deposit at its Costerfield Operation in central Victoria, Australia.

Program Summary

  • The Kendal system is the antimony-rich, up-dip continuation of the high-grade Youle and Shepherd deposits, where mining is currently underway at Costerfield.
  • Infill and extension drilling over the past year has significantly extended the known size of the vein system, both offset from and adjacent to historic mine workings. Whilst historic mining has been undertaken in the area, this latest drilling has revealed significant veining that was undiscovered when the mine was active between 1861 and 1939.
  • The Kendal veins contain areas of very high gold and antimony grade that have historically correlated with higher production rates.
  • Development to access the newly extended Kendal system began in late 2025 and is ongoing as extension drilling continues.
  • An animation summarising these results will be available at alkres.com

Kendal Assay Highlights

  • From the 501 vein to the south and immediately above Youle:
    • 132.2 g/t gold and 19.8 % antimony over 1.94m (ETW 1.04m) in PD222
    • 25.3 g/t gold and 42.8 % antimony over 1.71m (ETW 0.97m) in PD220
    • 13.5 g/t gold and 22.1% antimony over 2.67m (ETW 1.24m) in AG023
    • 25.4 g/t gold and 8.3 % antimony over 1.28m (ETW 1.12m) in BC437
    • 34.1 g/t gold and 12.9 % antimony over 0.76m (ETW 0.69m) in BC112A
  • From the 520 vein spanning greater than 500m in strike and locally 200m in height.
    • 267.5 g/t gold and 5.6 % antimony over 2.3 m (ETW 1.22m) in BC464
    • 143.7 g/t gold and 10.8 % antimony over 1.35 m (ETW 1.06m) in BC463
    • 18.2 g/t gold and 11.9 % antimony over 2.44 m (ETW 1.92m) in BC466A

Alkane Managing Director & CEO, Nic Earner, said: “The drilling results obtained from the Kendal deposit over the past year demonstrate the large potential remaining for significant high-grade mineralisation at shallow levels near to the Costerfield mine. Accessing and mining the newly defined mineralisation is a top priority for the Costerfield team and should provide the processing plant with an additional source of high-grade gold and antimony ore for some time to come.” 

Costerfield Deposit

Alkane Resources Ltd 100%

The Costerfield antimony-gold deposit was discovered in 1861. Antimony had already been identified in the district as early as 1853, as prospectors attracted to the McIvor (Heathcote) alluvial gold rush began to explore the surrounding hills for the primary deposits. Several lodes along a 3km corridor were rapidly opened up, the bulk of historical production coming from leases at the northern end of the field; the Costerfield (Main), Bombay and Minerva mines. Production from these mines primarily took place in two phases, between 1861-1883 and 1903-1924, and a short-lived attempt at redeveloping the mine occurred between 1933-1939.

Modern mining has been continuous since 2006, when Australian Gold Development (AGD) commenced underground operations at Augusta, at the southern end of the field. AGD’s Costerfield operation was purchased by Mandalay Resources in 2010, and extraction of the vertically continuous vein system has progressively moved north beneath the Costerfield, Minerva and Bombay group of mines, where the high-grade Youle and Shepherd lodes were discovered.

Mandalay Resources merged with Alkane Resources in 2025.

As mining of the underlying vein systems has progressed, it has been recognised that significant amounts of untested mineralisation remain at the level of the historic mines (within 300m of surface) both laterally and within the footprint of the workings. This is primarily due to the structural complexity of the ore system, which consists in places of sheeted vein swarms that can be difficult to interpret along strike without modern methods, including close-spaced drilling that was unavailable to the historic miners.

Regional map of the Costerfield Project in GDA grid showing Alkane tenements and the main corridors of mineralisation identified.

Figure 1. Regional map of the Costerfield Project in GDA grid showing Alkane tenements and the main corridors of mineralisation identified.

Deposit Geology and the Kendal System

The Kendal deposit (and the Costerfield mine) is located on the hinge and western flank of the north-striking Costerfield Anticline which forms the culmination of the Costerfield Dome. The Costerfield Anticline is asymmetrical with a steeply dipping eastern limb, and a gentle dip to the western limb. Numerous smaller scale parasitic folds and warps occupy the broad hinge zone, which often exhibit a weak axial cleavage or parting fabric in the host siltstone. It is this fabric which appears to be the dominant structural host or control for the Kendal veins.

Numerous bedding parallel faults, often containing early-generation laminated quartz veins bisect the system and act as a significant control on grade. Individual veins appear to be offset to the west with depth across these faults, although vein development clearly post-dates fault activity and often can be seen to run along the shallow-dipping faults in a healed manner. Down-dip, the Kendal mineralisation encounters a major west-dipping thrust fault and becomes Youle Lode, which persists downward until the thrust fault begins to shallow, at which point mineralisation breaks back out into a vertical vein system mirroring Kendal, called Shepherd. The Kendal system does not appear to persist into the eastern limb of the greater Costerfield Anticline, which is consistent with other vertical vein systems at Costerfield, potentially due to the lack of cleavage development and small angle between bedding and veining.

Geological cross section of the Costerfield gold-antimony vein system at mine northing 7200N, showing the Kendal vein system’s position in the Costerfield Anticline and its relationship with the below Youle and Shepherd veins which are currently mined.

Figure 2. Geological cross section of the Costerfield gold-antimony vein system at mine northing 7200N, showing the Kendal vein system’s position in the Costerfield Anticline and its relationship with the below Youle and Shepherd veins which are currently mined.

2025 Drilling Program

When the upper portion of Youle Lode was first accessed in 2018 by Mandalay Resources, it was confirmed that the lode system was upwardly continuous, bifurcating and steepening over subhorizontal faulting to form the Kendal system. Over the period of mining, occasional diamond drill holes were placed through Kendal and the adjacent historic mines, which gradually built confidence that a significant amount of mineralisation still existed above the modern mining level. In September 2024, Mandalay Resources issued a TSX announcement, describing the first portion of the Kendal system (the 580 Vein) to be thoroughly tested with modern drilling. The drilling described in this update builds on that work and has tested along the length of the three main historic mines. The bulk of remaining mineralisation identified to date is located adjacent to the Minerva and Costerfield mines, although continuity of the system is demonstrated all the way through to the Bombay mine in the south.

Significant amounts of historical drilling have tested the near-surface portion of the Kendal system, including a campaign of RC percussion drilling conducted by Australian Gold Development in 1995-1996. These historic intercepts have not been verified or validated by Alkane, and their positions are displayed in the release figures due to their relevance to the Kendal target area at height and are indicatory only as support to the geological interpretation.

Drilling Results

With the drill information to date in hand, a total of 25 individual veins have been delineated by Alkane through the Kendal system, building on historical modelling with the inclusion of this program’s drilling data, providing linking intercepts between the three historical mines, and significant extension for some. The Kendal veins extend over a strike of 600m, and some individual veins can be traced for most of this length, for example the 520 vein, which has been interpreted over a length of 500m, with up to 200m of vertical extent. The width of the Kendal system averages around 70m for much of its strike.

The antimony content of the Kendal system, as tested in the program, is significantly higher than that of the Shepherd system, which is a main source of ore for the Costerfield operation, and also demonstrates very high gold content (refer to Appendix 1 for a complete list of significant intercepts from the current drill program).

Many exceptional intercepts were achieved during the program and integrated into the Costerfield geological model. Below are some highlights in addition to those stated above:

  • From the 501 vein:
    • 29.6g/t gold and 50.5% antimony over 0.72m (ETW 0.26m) in PD232
    • 40.6g/t gold and 40.4% antimony over 0.4m (ETW 0.26m) in BC308
    • 30.1g/t gold and 13.4% antimony over 0.67m (ETW 0.55m) in BC438
    • 25g/t gold and 28.1% antimony over 0.67m (ETW 0.36m) in BC328
    • 50g/t gold and 48.3% antimony over 0.21m (ETW 0.2m) in KD529
    • 5.3g/t gold and 5.3% antimony over 1.83m (ETW 1.78m) in KD698
  • From the 519 vein:
    • 52.3g/t gold and 43.1% antimony over 0.34m (ETW 0.29m) in BC468
    • 138g/t gold and 7.7% antimony over 0.27m (ETW 0.21m) in BC143
  • From the 523 vein:
    • 39.4g/t gold and 7.5% antimony over 0.85m (ETW 0.68m) in BC438
    • 261g/t gold and 32.5% antimony over 0.15m (ETW 0.09m) in BC416
  • From the 545 vein:
    • 18.1g/t gold and 12.9% antimony over 1.97m (ETW 1.45m) in BC453
    • 84.4g/t gold and 35.2% antimony over 0.41m (ETW 0.3m) in BC470
  • From the 587 vein:
    • 7.5g/t gold and 5.9% antimony over 2.45m (ETW 1.93m) in BC311  
  • From the 590 vein:
    • 13.6g/t gold and 16.4% antimony over 2.22m (ETW 1.37m) in BC418
  • From the 595 vein:
    • 42.2g/t gold and 35.9% antimony over 0.45m (ETW 0.3m) in BC477
    • 41.2g/t gold and 41.8% antimony over 0.32m (ETW 0.23m) in BC465

The 501 vein, which is near modern infrastructure and has recently been accessed for mining, hosts many of the recent (and earlier, unreported) standout intercepts. In addition to the above, several other highly promising intersections were recorded adjacent to the modelled veins:

  • 275g/t gold and 0.1% antimony over 0.49m (ETW 0.4m) in BC125
  • 187g/t gold and 37.8% antimony over 0.35m (ETW 0.32m) in BC313
  • 54.2g/t gold and 50.8% antimony over 0.55m (ETW 0.44m) in BC311
  • 165g/t gold and 34.8% antimony over 0.27m (ETW 0.24m) in BC312

It is anticipated that these intercepts will be integrated into the existing geological model as future drilling adds additional context.

Costerfield / Kendal area plan view with major Kendal vein best fit traces displayed (green), cross section positions (yellow lines), 2025 drill traces and >10g/t AuEq intercepts labelled. Historic Kendal intercept positions are shown as faded circle.

Figure 3. Costerfield / Kendal area plan view with major Kendal vein best fit traces displayed (green), cross section positions (yellow lines), 2025 drill traces and >10g/t AuEq intercepts labelled. Historic Kendal intercept positions are shown as faded circle.

Long Section of the Kendal 501 Vein with high grade assays highlighted. The lower portion of the 501 vein has already been accessed by Alkane, and diluted face grades are shown alongside drilling intercepts.

Figure 4. Long Section of the Kendal 501 Vein with high grade assays highlighted. The lower portion of the 501 vein has already been accessed by Alkane, and diluted face grades are shown alongside drilling intercepts.

Long Section of the Kendal 520 Vein with high grade 2025 assays highlighted. The section shows the strong continuity of the Kendal system outside of the historically mined sections, both vertically and along strike.

Figure 5. Long Section of the Kendal 520 Vein with high grade 2025 assays highlighted. The section shows the strong continuity of the Kendal system outside of the historically mined sections, both vertically and along strike.

The veins are dominantly single-generation, typically consisting of quartz and carbonate, grading to massive stibnite towards the centre line of the veins. Gold can be coarse and present in any part of the vein, and “rusty” gold is often noted, colloform free gold left after the chemical breakdown of the mineral aurostibite, which is common at Costerfield. The veins are surrounded by a narrow (>2m) wallrock sulphide alteration of pyrite and arsenopyrite.

Drill core photos from BC418 (590 Vein) showing the nature of veining with individual assay grades of the samples. Composited interval graded 13.6g/t gold and 16.4% antimony over 2.22m (ETW 1.37m).

Figure 6. Drill core photos from BC418 (590 Vein) showing the nature of veining with individual assay grades of the samples. Composited interval graded 13.6g/t gold and 16.4% antimony over 2.22m (ETW 1.37m).

Photo of drill core from BC463 (520 Vein) showing the sheeted nature of the ore veins. Note the oxidised interval adjacent to the intercept signifies an historical stope adjacent to the in situ high-grade veins. Composited interval graded 143.7g/t gold and 10.8% antimony over 1.35m (ETW 1.06m).

Figure 7. Photo of drill core from BC463 (520 Vein) showing the sheeted nature of the ore veins. Note the oxidised interval adjacent to the intercept signifies an historical stope adjacent to the in situ high-grade veins. Composited interval graded 143.7g/t gold and 10.8% antimony over 1.35m (ETW 1.06m).

Cross section looking north at mine northing 7120N showing Kendal veins in cross section and drill intercepts between 7000N and 7135N. 2025 drill intersections grading over 10g/t AuEq when diluted to 1.8m are labelled. The historic Costerfield Main shaft and workings can be seen centred at 15,500E, and the modern Alkane development offset to the west and depth. Note the average depth of the Kendal mineralisation ascends to the north with the plunge of the anticline.

Figure 8. Cross section looking north at mine northing 7120N showing Kendal veins in cross section and drill intercepts between 7000N and 7135N. 2025 drill intersections grading over 10g/t AuEq when diluted to 1.8m are labelled. The historic Costerfield Main shaft and workings can be seen centred at 15,500E, and the modern Alkane development offset to the west and depth. Note the average depth of the Kendal mineralisation ascends to the north with the plunge of the anticline.

Cross section looking north at mine northing 6780N, showing Kendal veins in cross section and drill intercepts between 6750N and 6825N. 2025 drill intersections grading over 10g/t AuEq when diluted to 1.8m are labelled. This northing passes through the old central Minerva mine and shows the sheeted nature of the east-dipping Costerfield, Minerva and Bombay (540,541 and 542) lodes, in contrast to the northern end of the system where the Costerfield lode is the most significant east-dipping vein.

Figure 9. Cross section looking north at mine northing 6780N, showing Kendal veins in cross section and drill intercepts between 6750N and 6825N. 2025 drill intersections grading over 10g/t AuEq when diluted to 1.8m are labelled. This northing passes through the old central Minerva mine and shows the sheeted nature of the east-dipping Costerfield, Minerva and Bombay (540,541 and 542) lodes, in contrast to the northern end of the system where the Costerfield lode is the most significant east-dipping vein.

Future Plans

Geological modelling and interpretation of results are ongoing, subject to reporting a mineral resource in respect of the Kendal system, the Company intends to work towards integrating those mineral resources into the Costerfield resource and life-of-mine plan in the near future. Early confidence in the southern portions of the tested veins led to the internal decision to begin access development from existing infrastructure late in 2025. Further drilling of the Kendal system is warranted, including on the underexplored Costerfield Main reef to the east of the historic mine. Currently, near mine drilling is focused on the south of the field, where the recently discovered Brunswick South deposit is being drilled alongside extensions to the Cuffley deposit. Drilling at Kendal is expected to resume in 2026.

This document has been authorised for release to the market by Nic Earner, Managing Director and CEO.

ABOUT ALKANE ‐ www.alkres.com ‐ ASX:ALK | TSX: ALK | OTCQX: ALKRY

Alkane (ASX:ALK; TSX:ALK; OTCQX:ALKRY) is an Australia-based gold and antimony producer with a portfolio of three operating mines across Australia and Sweden. The Company has a strong balance sheet and is positioned for further growth.

Alkane’s wholly owned producing assets are the Tomingley open pit and underground gold mine southwest of Dubbo in Central West New South Wales, the Costerfield gold and antimony underground mining operation northeast of Heathcote in Central Victoria, and the Björkdal underground gold mine northwest of Skellefteå in Sweden (approximately 750 km north of Stockholm). Ongoing near-mine regional exploration continues to grow resources at all three operations.

Alkane also owns the very large gold-copper porphyry Boda-Kaiser Project in Central West New South Wales and has outlined an economic development pathway in a Scoping Study. The Company has ongoing exploration within the surrounding Northern Molong Porphyry Project and is confident of further enhancing eastern Australia’s reputation as a significant gold, copper and antimony production region.

Alkane Resources Limited

Competent Persons Statement

As an Australian Company with securities listed on the Australian Securities Exchange (ASX), Alkane is subject to Australian disclosure requirements and standards, including the requirements of the Corporations Act 2001 and the ASX. Investors should note that it is a requirement of the ASX Listing Rules that the reporting of ore reserves and mineral resources in Australia is in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) and that Alkane's ore reserve and mineral resource estimates and reporting comply with the JORC Code.

Alkane is also subject to certain Canadian disclosure requirements and standards as a result of its secondary listing on the Toronto Stock Exchange (TSX), including the requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101). Investors should note that it is a requirement of Canadian securities law that the reporting of mineral reserves and mineral resources in Canada and the disclosure of scientific and technical information concerning a mineral project on a property material to Alkane comply with NI 43-101.

Unless otherwise advised above, or in the relevant ASX announcements referenced, the information in this announcement that relates to exploration results, mineral resources and ore reserves is based on, and fairly represents, information compiled by Mr Chris Davis, who is a Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Alkane Resources Limited. Mr Davis has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being undertaken to qualify as a Competent Person as defined in the JORC Code and as a Qualified Person under NI 43-101. Mr Davis consents to the inclusion in this announcement of the matters based on his information in the form and context in which they appear. The information in this announcement that relates to previously reported exploration results, mineral resources and ore reserves is extracted from the Company’s ASX announcements noted in the text of the announcement and available to view on the Company’s website. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original announcements and that, in the case of estimates of mineral resources or ore reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Technical Reports released to the TSX or for TSX Market

The NI 43-101 compliant technical report titled ‘NI 43-101 Technical Report, Costerfield Operation, Victoria, Australia’ and dated 28 March 2025, with an effective date of 31 December 2024 supports the information contained herein and is available on the ASX and under Alkane’s profile on SEDAR+ at www.sedarplus.ca.

Reference should be made to the full text of the foregoing technical report for the assumptions, qualifications and limitations relating to the Mineral Resource Estimates and Ore Reserves contained therein and herein. All material assumptions and technical parameters underpinning the estimates in the technical reports continue to apply and have not materially changed.

Cautionary Note Regarding Forward-Looking Information and Statements

This announcement contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation and may include future-oriented financial information or financial outlook information (collectively Forward-Looking Information). Actual results and outcomes may vary materially from the amounts set out in any Forward-Looking Information. As well, Forward-Looking Information may relate to: future outlook and anticipated events; expectations regarding exploration potential; production capabilities and future financial or operating performance, including AISC, investment returns, margins and share price performance; production and cost guidance and the timing thereof; issuing updated resources and reserves estimate and the timing thereof; the potential of Alkane to meet industry targets, public profile and expectations; and future plans, projections, objectives, estimates and forecasts and the timing related thereto.

Forward-Looking Information is generally identified by the use of words like "will", "create", "enhance", "improve", "potential", "expect", "upside", "growth" and similar expressions and phrases or statements that certain actions, events or results "may", "could", or "should", or the negative connotation of such terms, are intended to identify Forward-Looking Information.

Although Alkane believes that the expectations reflected in the Forward-Looking Information are reasonable, undue reliance should not be placed on Forward-Looking Information since no assurance can be provided that such expectations will prove to be correct. Forward-Looking Information is based on information available at the time those statements are made and/or good faith belief of the officers and directors of Alkane as of that time with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by the Forward-Looking Information. Forward-Looking Information involves numerous risks and uncertainties. Such factors include, without limitation: risks relating to changes in the gold and antimony price.

Forward-Looking Information is designed to help readers understand Alkane’s views as of that time with respect to future events and speak only as of the date they are made. Except as required by applicable law, Alkane assumes no obligation to update or to publicly announce the results of any change to any forward-looking statement contained or incorporated by reference herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the Forward-looking Information. If Alkane updates any one or more forward-looking statements, no inference should be drawn that the company will make additional updates with respect to those or other Forward-looking Information. All Forward-Looking Information contained in this announcement is expressly qualified in its entirety by this cautionary statement.

Disclaimer

Alkane has prepared this announcement based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of Alkane, its directors, officers, employees, associates, advisers and agents, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it.

This announcement is not an offer, invitation, solicitation, or other recommendation with respect to the subscription for, purchase or sale of any security, and neither this announcement nor anything in it shall form the basis of any contract or commitment whatsoever.

APPENDIX 1 – Tabulated Drilling Results

Significant intercepts from the Kendal drilling program at Costerfield

Drill Hole IDFrom (m)To (m)Interval (m)Estimated True Width (m)Gold Grade (g/t)Antimony Grade (%)Gold-equiv. grade diluted to 1.8 m (g/t)Interpreted Vein
AG02368.0570.722.671.2413.522.145.7501
BC001279.14279.620.480.380.600.1501
BC018224.51224.680.170.10.600501
BC098210.03210.120.090.071.610.2501
BC112A105.13105.890.760.6934.112.924.7501
BC113117.96118.870.910.752.71.72.9501
BC114131.75132.851.10.83.223.6501
BC122228.01228.190.180.141.200.1501
BC12542.1142.550.440.381.610.95.8501
BC12638.9239.140.220.21.18.22.3501
BC30768.6168.990.380.223914.39.1501
BC30851.9652.360.40.2640.640.419.7501
BC31155.4455.70.260.2118.66.53.9501
BC31232.2532.350.10.081.200.1501
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BC447149.17149.350.180.1418.94.92.3596
BC454164.46164.90.440.3127.111.59.3596
BC130168.31168.920.610.4431.83.910597
BC453165.66166.460.80.422.92.11.8597
BC30752.4352.610.180.081.50.60.150101
BC30841.3241.530.210.120.60050101
BC31457.5857.740.160.071.319.11.750101
BC32553.4253.790.370.180.210.350101
BC32659.5159.760.250.111.53.90.750101
BC32862.8363.130.30.151.100.150101
BC354143.1143.20.10.063.12.30.350101
BC35951.251.350.150.080.80050101
BC36039.5139.610.10.060.10050101
KD53073.5673.70.140.130.412.42.250101
KD57444.4547.082.631.840.913.350101
KD58810.911.040.140.132.612.22.350101
PD14434.1434.530.390.359.16.24.750101
PD25451.0151.50.490.260.81.40.650101
PD25546.1746.690.520.366.51.62.150101
PD25637.6137.710.10.0829.311.42.650101
BC008289.09289.190.10.070.90050102
BC414A76.9177.150.240.1411.416.23.950102
BC41591.1991.390.20.112.712.42.450102
BC416102.04102.20.160.073.618.8250102
BC442125.32125.490.170.130.213.23.650102
BC443135.85136.010.160.0914.715.32.650102
BC444147.65149.251.60.790.60.30.550102
BC461121.94122.070.130.084.37.3150102
BC463112.66112.880.220.1614.710.13.550102
KD57668.7268.880.160.0620.110.41.650102
BC114110.18110.290.110.070.922.62.250103
BC414A67.88680.120.053.570.550103
BC41579.879.970.170.072826.53.450103
BC41691.4891.590.110.041.60050103
BC439110.861110.140.091.70.20.150103
BC440105.16105.260.10.077.30.20.350103
BC441110.76110.860.10.0723.30.450103
BC441A110.96111.060.10.072.62.70.450103
BC442117.17117.270.10.061.80.70.150103
BC443126.41126.560.150.091.95.80.850103
BC444137.73138.350.620.361.20.80.650103
BC456114.72115.470.750.431.50.60.750103
BC461114.45114.550.10.061.400.150103
BC462104.07104.170.10.080.10.1050103
KD576484910.1612.91.11.450103
BC00385.4185.610.20.153.515.63.3Associated
BC112A99.3599.530.180.160.210.32.2Associated
BC112A107.16107.420.260.2413.412.1Associated
BC114169.59169.770.180.139.217.13.7Associated
BC114170.77170.910.140.119.113.62.9Associated
BC114173.62173.830.210.151226.411.7Associated
BC12537.137.210.110.091438.38.1Associated
BC12537.2137.980.770.620.45.64.7Associated
BC12539.3139.590.280.2323.20.33Associated
BC12544.6445.130.490.42750.160.8Associated
BC129156.62156.830.210.1614.814.54.4Associated
BC129158.841590.160.129.98.62.1Associated
BC129164.9165.070.170.1392.439.313.6Associated
BC143203.94204.390.450.284.242.2Associated
BC143210.62211.310.690.4332.42.1Associated
BC30891.7891.890.110.084.617.32.1Associated
BC30893.0693.170.110.0841.515.93.6Associated
BC30899.2399.430.20.1547.76.75.3Associated
BC3110.490.720.230.1817.516.75.9Associated
BC3112.553.50.950.761.122.5Associated
BC3113.54.050.550.4454.250.843Associated
BC3120.30.40.10.097.927.73.6Associated
BC3121.11.370.270.2416534.832.9Associated
BC31300.410.410.380.87.23.8Associated
BC3131.21.550.350.3218737.849.7Associated
BC314113.17113.310.140.0859.711.84Associated
BC354131.03131.30.270.1921.2125.3Associated
BC39899.6499.880.240.1411.424.35.3Associated
BC416142.73143.180.450.2923.71.64.5Associated
BC418193.51193.640.130.0915.119.12.9Associated
BC423173.98174.280.30.167.910.83Associated
BC426181.72182.150.430.328.504.8Associated
BC426182.15182.50.350.253.36.82.7Associated
BC430189.84190.10.260.1624.83.32.9Associated
BC431208.9209.080.180.1128.810.33.4Associated
BC434150.75151.20.450.367.61.92.5Associated
BC434170.98171.80.820.6660.12.3Associated
BC437112.24112.340.10.0928.212.12.8Associated
BC439127.05127.50.450.356.52.72.5Associated
BC440138.41138.520.110.0921.110.32.3Associated
BC440140.15140.390.240.195.411.63.6Associated
BC441164.3164.530.230.156.39.72.5Associated
BC443209.09209.320.230.129.814.63Associated
BC446145.91146.10.190.1386.98.88Associated
BC446149.05149.570.520.364.42.72.2Associated
BC44749.4949.790.30.22113.74.1Associated
BC447136.48136.860.380.284.15.22.6Associated
BC449204.82204.940.120.0540.911.32Associated
BC450127.66128.390.730.573.21.42.1Associated
BC450128.73129.70.970.7613.29.415.1Associated
BC452157.49157.690.20.135.421.54.2Associated
BC452157.69158.40.710.474.11.62.1Associated
BC452160.381610.620.413.57.85.1Associated
BC452163.64164.20.560.380.95.22.7Associated
BC453181.1181.20.10.062032.87.2Associated
BC454182.83183.070.240.1637.743.112.3Associated
BC463109.38109.530.150.11214.22.1Associated
BC465133.39133.660.270.1726.523Associated
BC466A136.22136.540.320.2412.44.43.1Associated
BC468130.32130.610.290.2284.12.1Associated
BC468164.47164.640.170.131.8162.9Associated
BC469113.38113.810.430.271.38.33.1Associated
BC469118.43118.950.520.320.65.82.6Associated
BC469169.64169.920.280.1816.6206.3Associated
BC469170.8171.240.440.2837.16.78.2Associated
BC470189.05189.790.740.4717.13.76.7Associated
BC477210.82211.260.440.260.282.8Associated
BC481182.2182.60.40.2131.47.95.9Associated
BC481182.6182.90.30.1618.68.43.4Associated
BC481182.9183.150.250.135.39.52.1Associated
BC481189.23189.930.70.370.84.22.2Associated
BC481200.8201.060.260.1419.811.63.6Associated
BC481201.23201.450.220.1221.721.54.7Associated
BC482232.73233.080.350.1512.88.82.9Associated
 
Notes
1.   The AuEq (gold equivalent) grade is calculated using the following formula:
 
 AuEq g per t = Au g per t + Sb% x 
Sb price per 10kg x Sb processing recovery
   Au price per g x Au processing recovery
 
   

Price assumptions are:

  • Au US$/oz = 2,500 (Au US$/gram = 80.39); and
  • Sb US$/t = 19,000 (Sb US$/10kg = 190).

Recovery assumptions are:

  • Au Recovery = 91%; and
  • Sb Recovery = 92%

The Au recovery assumption and Sb recovery assumption is based on established processing and sales in respect of Costerfield.

It is the Company’s opinion that all elements included in the metal equivalent calculation have a reasonable potential to be recovered and sold.

2.   Composites that are not interpreted to be connected to a named vein and are below 2 g/t AuEq when diluted to 1.8m are not considered significant and are not recorded here.

Drill hole collar details from modern Kendal drilling at Costerfield:

Hole IDNorthingEastingElevationDepthAzimuthDipDate Completed
AG0196734152061193360.4498-4129/01/2019
AG0206528155371195287.68307-385/02/2019
AG02367731537495989.6646516/09/2019
AG247W1645415186967323.06501828/09/2025
BC0016724152031193394.30111-418/07/2014
BC0036873154121190160.0098-4522/07/2014
BC003A6873154121190144.40100-4531/07/2014
BC0047069154241195160.20106-3811/08/2014
BC005698815463119790.10103-4120/08/2014
BC0086749156351190500.30276-3815/12/2017
BC0097061152881192249.90114-3612/12/2017
BC0107062152881192329.9093-513/01/2018
BC0126770154521187251.60285-415/01/2018
BC0186569152611190402.00122-6126/02/2018
BC098703015269886279.50621227/04/2020
BC108701215354923229.9146143/07/2020
BC112A689115357937170.00932529/05/2020
BC113689015357937210.00943410/06/2020
BC114688915357938224.801293625/06/2020
BC122709215280860252.00561424/06/2020
BC12567941538095360.3765118/07/2020
BC12667941538095451.48851910/07/2020
BC128701315355925232.3049344/08/2020
BC129701115355924192.6181377/08/2020
BC130701015354924215.901094213/08/2020
BC1426751153221191208.30121-3228/08/2020
BC1436756153221191311.0355-3114/09/2020
BC307672515377969153.501015211/04/2022
BC308672415377969150.00784016/04/2022
BC31168791540795374.60113334/07/2022
BC31268801540795380.9078166/07/2022
BC31368791540795374.90112177/07/2022
BC314672415377970150.00694918/04/2022
BC325672515377969113.801314516/06/2022
BC326672415377969137.301463524/06/2022
BC328673415374969117.78553227/06/2022
BC353A666215299962180.75851021/09/2022
BC354666315299963202.70582118/09/2022
BC358665915298963226.00146239/09/2022
BC359673415374969100.10523027/09/2022
BC360672315376969110.50924022/09/2022
BC36167221537596873.001191924/09/2022
BC397701215353922200.0029-429/06/2024
BC398701215354922125.434232/07/2024
BC404701215354923300.07351019/07/2024
BC406701215355923162.00521623/07/2024
BC408701315353923216.0040616/08/2024
BC409701215354923220.00501028/08/2024
BC414A675915354961120.00662528/09/2024
BC415675915354961118.45551521/09/2024
BC416675915354960145.44511525/09/2024
BC417675915353960194.30431016/09/2024
BC418701315355924370.6056294/01/2025
BC419701215355925350.30432119/01/2025
BC420701315354924200.57342422/01/2025
BC421701315353923390.0624271/02/2025
BC422701315353923248.0029104/02/2025
BC423701315354924197.2040269/02/2025
BC424701315354923284.17361617/02/2025
BC425701115355925162.11672912/02/2025
BC426701315355924195.5952193/03/2025
BC427701315353924329.10272025/02/2025
BC428701015354924149.89833128/02/2025
BC429701315353923250.0023157/03/2025
BC430701215355925262.82603316/05/2025
BC431701315355924251.43472621/05/2025
BC434701315355924244.80933525/05/2025
BC437689015358938147.4986277/06/2025
BC438688915357938218.051023211/06/2025
BC439688815357939181.201103725/06/2025
BC440688815357938143.701163115/06/2025
BC441688815356938194.101323319/06/2025
BC441A688715356938149.701303321/06/2025
BC442688815356938278.03140332/07/2025
BC443688715356938232.921483118/08/2025
BC444688715355938210.091552921/07/2025
BC445701015354925221.73100421/06/2025
BC446689115357939235.72704030/07/2025
BC447689115357939244.74713426/07/2025
BC448689115357937191.11732413/07/2025
BC449689215356938229.60322514/08/2025
BC450689015357939166.2787366/07/2025
BC451689015357938175.6581309/07/2025
BC452689015357940218.90824731/08/2025
BC453689115357939222.7058373/08/2025
BC454689115356938215.0057286/08/2025
BC455689115356937247.00542010/08/2025
BC456688815357939292.601234227/08/2025
BC457688815356940280.001394823/08/2025
BC458688715356939301.411434119/08/2025
BC459688715356939350.231523717/10/2025
BC460688715355938295.811603222/10/2025
BC461688715356939233.10139385/09/2025
BC462688815357938197.16122285/10/2025
BC463688715356937195.87136258/10/2025
BC464688715356939281.721474429/10/2025
BC465688815356939277.50130442/11/2025
BC466A689115357937250.28592120/11/2025
BC467689115356937296.57471926/11/2025
BC468689115357938272.08643015/11/2025
BC469689015357940250.0073481/12/2025
BC470689115357940256.0962446/12/2025
BC475688715356939271.401534311/12/2025
BC476688715356939314.471543921/12/2025
BC477688815356939249.501354214/12/2025
BC481689115357939277.5055442/02/2026
BC482689215356938328.77383110/01/2026
BC483688915357940235.00895029/12/2025
KD52967591534495982.8080626/07/2019
KD53067581534495981.001031528/07/2019
KD55367651538396144.3078229/09/2019
KD55667731537495870.0065-226/09/2019
KD55767731537395882.00591223/09/2019
KD57467401537496970.00621722/10/2019
KD57667401537496990.45401323/10/2019
KD58067951539995135.00672425/10/2019
KD58867351539697034.90135118/11/2019
KD681701115355922115.4063228/02/2020
KD682701215355922127.905443/03/2020
KD683701215354922129.0053-210/03/2020
KD684701215354922145.5043-130/03/2020
KD68868241539995239.15123311/04/2020
KD696701115355923110.10691620/04/2020
KD698701015355923114.60922321/04/2020
KD700704115339895150.0048318/05/2020
KD701700915354923110.00104237/05/2020
KD702704115339895144.0052919/05/2020
MA0016754153231191239.53108-359/10/2020
MA0026755153231191257.1791-383/12/2020
MA0046753153221191256.40118-3822/10/2020
MA0056501155311188230.10290-416/11/2020
PD14467371537496959.481032013/09/2024
PD15268191541395612.751102317/01/2024
PD15368191541295624.03492719/01/2024
PD22068181541295624.40672831/05/2024
PD221A68181541295768.2362385/06/2024
PD221AB68181541295768.2362385/06/2024
PD22268171541295622.83924631/05/2024
PD22468041541095834.7676426/06/2024
PD23267991541095720.73164-1228/06/2024
PD25467361537496990.6451222/09/2024
PD25567361537496967.7373254/09/2024
PD25667361537496960.00862210/09/2024
PD25767361537496980.0372386/09/2024
TP0096402152701187135.6088-4515/02/2014
TP0186465152901188312.60114-453/06/2014

Notes:

  1. Coordinate System: Local Costerfield Mine Grid

Appendix 2 - JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

CriteriaJORC Code explanationCommentary
Sampling techniques
  • Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.
  • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
  • Aspects of the determination of mineralisation that are Material to the Public Report.
  • In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.
Sampling of Au and Sb mineralisation is from diamond drill core (HQ2, HQ3, NQ2, BQ and LTK48) using standardised Alkane processes that have been in place for over a decade.

Due to the discrete mineralisation of the deposit, not all diamond drill core was required to be sampled. Sample intervals were determined and marked on the core by Alkane geologists using the following general rules:

  • All stibnite-bearing veins are sampled.
  • Intersections of polyphase breccias, stockwork veins, laminated quartz veins or massive quartz veins were routinely sampled.
  • A waste sample is taken either side of the mineralized vein (30–100 cm).
  • Siltstone is sampled where disseminated arsenopyrite is prevalent.
  • Fault gouge zones were sampled at the discretion of the geologist.
Diamond core sampling intervals were standardised wherever possible and ranged from 5 cm to 1 m in length. Diamond drill core samples have been cut in half using the orientation line or cut line, with a consistent side of the cut core selected for assay to ensure unbiased sampling. Whole core was sampled for LTK48 core. The methodology was validated by the Costerfield QA/QC protocols. No sampling instruments required calibration.
Drilling techniques
  • Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).
Diamond Drilling was undertaken using predominantly LM90 drill rigs, with NQ2 used in underground drilling and HQ2 and NQ2 on surface. HQ3 was employed where ground conditions or noise considerations required. Diamond Drilling from ore-drives and grade control drilling utilised a Kempe or Diamec rigs drilling in LTK48. A LM30 drilling BQ was used for a short period in 2020.

Core orientation was undertaken using the Axis or Reflex digital orientation kits.
Drill sample recovery
  • Method of recording and assessing core and chip sample recoveries and results assessed.
  • Measures taken to maximise sample recovery and ensure representative nature of the samples.
  • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
Diamond drilling was routinely checked for core loss during both drilling and sampling. Where zones of poor recovery were encountered, core loss was assigned at 0.1m intervals. Core loss blocks were added by drillers and then checked by geologists or field technicians when the core was measured, and depth marks made. If problems were encountered with recovery and core block depths, the drill shift supervisor was advised and depth marking stopped until the issue was rectified.

No relationship between grade and sample recovery has been established. Reported intervals reflect full recovery or composites with core-loss assigned a zero grade value. Mineralsiation zones with poor recovery are redrilled until a representative sample is achieved.
Logging
  • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
  • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.
  • The total length and percentage of the relevant intersections logged.
All drill core was geologically logged as full core for the relevant rock quality designation, lithology, weathering, alteration, mineralsiation, structural data, and sample intervals.

Logging is qualitative in nature for the geology, and quantitative for rock quality designation.

The total length of the intersections logged is 27,688m (being 100%).

Data capture was digital into the AcQuire software using validated codes.

All drill core was photographed wet with high resolution photographs stored on the site’s server, which is routinely backed-up.
Sub-sampling techniques and sample preparation
  • If core, whether cut or sawn and whether quarter, half or all core taken.
  • If non-core, whether riffled, tube sampled, rotary split, etc., and whether sampled wet or dry.
  • For all sample types, the nature, quality and appropriateness of the sample preparation technique.
  • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
  • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
  • Whether sample sizes are appropriate to the grain size of the material being sampled.
Diamond core sampling intervals were standardised wherever possible and ranged from 5 cm to 1 m in length. Diamond drill core samples have been pre-dominantly sampled by being cut in half using the orientation line or a cut line, with a consistent side of the cut core selected for assay to ensure unbiased sampling. Smaller diameter BQ and LTK48 core was sampled whole.

The following sample preparation activities were undertaken by Alkane staff for both diamond drill core and underground channel samples:

  • Sample information and characteristics were measured, logged, recorded in the acQuire database and assigned a unique sample ID.
  • Sample material was placed into a calico bag previously marked with the unique sample ID.
  • Calico bags were loaded into plastic bags such that the plastic bags weighed less than 10 kg.
  • An assay submission sheet was generated and placed into the plastic bag.
  • Plastic bags containing samples were sealed with a metal or plastic tie and transported to On Site in Bendigo via private courier or Alkane staff.
The following sample preparation activities were undertaken by On Site staff:

  • Samples were received and checked for labelling, missing samples, etc. against the submission sheet.
  • If the sample batch matched the submission sheet, sample metadata were entered into On Site’s LIMS. In the event that discrepancies were noted, Alkane was contacted by On Site to resolve the discrepancy prior to further work commencing. Records of all discrepancies and corrective actions taken are recorded by the Alkane database administrator.
  • A job number was assigned, and worksheets and sample bags were prepared.
  • Samples were placed in an oven and dried overnight at 106°C.
  • Samples were weighed and recorded.
  • The entire dried sample was crushed using a Rocklabs Smart BOYD Crusher RSD Combo with a jaw closed side setting of 2 mm.
  • If the dried sample weight was less than 3 kg, the entire sample was retained for pulverisation. If the dried sample weight was greater than 3 kg, the sample was spilt to 3 kg using the rotary splitter that is incorporated in the BOYD crusher.
  • Rejects from splits greater than 3 kg were retained as coarse rejects in labelled calico bags and returned to Mandalay Resources.
  • The 3 kg sample was then pulverised in an Essa LM5 Pulverising Mill to 90% passing 75 µm.
For fire assay and base metal samples:

  • The 3 kg pulverised samples were then subsampled to take a master ~200 g pulp split for assay by a manual scooping procedure across the full width and depth of the mill bowl and loaded sequentially into labelled pulp packets.
For all methods:

  • For every 21 primary samples, a sample was randomly selected by LIMS and a duplicate 200 g split for fire assay or second jar for photon assay was submitted for analysis using the same analytical procedure as the primary sample.
  • The remaining pulp was returned to its sample bag and then returned to Mandalay Resources for retention following the completion of assay.
A quarterly check-assay program is in place to monitor the representative nature of sampling and assay methodology.

Sample sizes are considered appropriate to the grain size of the material being sampled.
Quality of assay data and laboratory tests
  • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
  • For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
  • Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.
The assaying protocols used at Costerfield have been developed to ensure expected levels of accuracy and precision are met for the style of mineralisation tested.

Samples were assayed for gold, antimony, arsenic, and iron using representative partial digest methodologies:

  • Gold grades were determined either by a 25g charge with lead flux fire assay and an AAS finish.
  • Antimony, iron and arsenic concentrations were determined using an aqua regia based acid digest with an AAS finish.
Assaying techniques are considered total for gold and antimony.

The quality control procedures utilised at Costerfield used CRMs prepared by commercial laboratories Geostats and OREAS.

CRMs were either prepared using Costerfield material or were otherwise matrix matched to ensure a representative nature.

At least one CRM was submitted with every batch of diamond core samples and typically at a rate of 1 standard per 25 samples. Up to six CRMs covering the expected ranges of gold and antimony mineralisation were in rotation during routine sampling.

An assay result for a CRM was considered acceptable when the returned assay fell within three standard deviations of the CRM certification grade. Outside this range, the CRM assay was considered to have failed and all significant mineralised samples within the batch were re-assayed, where significant grades were defined as mineralised samples that may have a material-impact in future resource estimates. All actions or outcomes were recorded as comments in the QA/QC register.

Alkane submitted uncrushed samples of basalt as blank material sourced from Geostats into assay sample lots, at a rate of 1 in every 30 samples, to test for contamination during sample preparation.

The failure threshold for gold is 0.10 g/t, which was chosen since it represents ten times the detection limit of 0.01 g/t for AAS. The failure threshold for antimony is 0.05%, which was chosen for being five times the detection limit of 0.01% for AAS.

Pulp duplicates were collected routinely at a rate of 1:22 by On Site and submitted with the primary sample for analysis. Precision was in line for the expected a variance in both gold and antimony.

Umpire laboratory checks to three additional commercial assay laboratories are completed each year covering all new assays generated at the property.

Verification of sampling and assaying
  • The verification of significant intersections by either independent or alternative company personnel.
  • The use of twinned holes.
  • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
  • Discuss any adjustment to assay data.
Sampling intervals and numbering were validated by geologists prior to cutting, with pre-numbered sampling bags systematically used by the field technicians to ensure the correct sample was submitted under each ID.

Internal validation of significant intercepts was completed by the exploration and senior geologists. Photographs, logging, sample weights and assay results were checked to ensure manual errors were eliminated.

Key intercepts at Costerfield were also validated by the Resource Geologist and Competent Person during the interpretation and modelling or the Costerfield resource estimation.

Assay and sampling data was automatically uploaded into the Acquire database system and QA/QC validated at the point of upload. Any issues were entered into a QA/QC register and resolved before data acceptance.

Alkane staff conduct periodic visits to the On Site Laboratory in Bendigo and meet regularly with the Lab managers. In early 2023 a review was conducted by a third party (RSC Consulting Pty Ltd) to ensure the practices are appropriate. Nothing of major concern was found.

Twinned holes are typically only drilled intentionally to get full recovery of an ore zone when the initial hole has core loss. There are inadvertent twinned intercepts within the database, particularly when the collar position is close to the mineralisation. Twinned intercepts provide consistent correlation of structure and mineralisation character however due to the short range grade variability common structurally controlled gold systems, may not have the same mineralisation tenor. No adjustment has been made to the assay data.
Location of data points
  • Accuracy and quality of surveys used to locate drill holes (collar and downhole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
  • Specification of the grid system used.
  • Quality and adequacy of topographic control.
Drill hole collar locations have been determined by differential GPS or theodolite surveying methods, either by external surveyors or Alkane surveyors. A digital report is created and entered into the acQuire Database. Data entry accuracy is validated against a LiDAR topographic map and high-resolution satellite imagery. Topographic control is considered adequate.
A local mine grid system is in use at Costerfield. The MGA94 (Zone 55) coordinates can be obtained from the Costerfield Mine Grid (CMG) coordinates from the following:

MGA 'E' = (CMG 'E' x 0.945671614) - (CMG 'N' x 0.325123399) + 291068.619

MGA 'N' = (CMG 'E' x 0.325123399) + (CMG 'N' x 0.945671614) + 5905061.714

Where CMG north is +29o and +17.6 o from Magnetic North and True North respectively.

Downhole surveys were conducted using either the digital Reflex EZ-TRAC tool in both single-shot (30 m while drilling) and multi-shot mode (3 m spacing at end of hole) where required, or Axis Gyro (2024 onwards) in both over-shot and continuous modes as required.

All downhole survey data is digitally uploaded to the Reflex hub or Axis Connect respectively and automatically imported into the acQuire database.
Data spacing and distribution
  • Data spacing for reporting of Exploration Results.
  • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
  • Whether sample compositing has been applied.
The Kendal drilling reported in this announcement comprises infill and extension drilling at spacings that vary across the deposit as complexity dictated. In infill areas, drill spacing is approximately 40m by 40m. In extension areas, drill spacing is approximately 100m by 100m.

This approach is considered appropriate for establishing a geological and grade continuity acceptable for either an Inferred or Indicated Mineral Resource Estimation.

Where modelled veins or mineralisation zones were sub-sampled, a full-length composite of variable thickness has been reported.
Orientation of data in relation to geological structure
  • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
  • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
Drill holes at Kendal are designed to ensure an Alpha angle greater than 30°, indicating that the orientation of the drill holes (and therefore samples) are appropriate for the structure.

The drilling orientation compared to that of key mineralised structures is not considered to have introduced any sampling bias as the structures are currently interpreted.
Sample security
  • The measures taken to ensure sample security.
All drill core was delivered to the Brunswick site, which is securely gated, with video surveillance, and time stamped swipe card access.

Drill core logging and sampling was completed in this secure facility.

Sample bags containing sample material are placed in heavy duty plastic bags in which the sample submission sheet is also included. The plastic bags are sealed with a metal twisting wire or heavy-duty plastic cable ties.

The bags are taken to a storage area that is under constant surveillance.

A private courier collects samples daily and transports them directly to On Site in Bendigo, where they are accepted by laboratory personnel.

Sample pulps from On Site are returned to Alkane for storage. The pulps are stored undercover, wrapped in plastic.
Audits or reviews
  • The results of any audits or reviews of sampling techniques and data.
Internal reviews of the exploration process and procedures are completed by senior geologists.

Routine monthly lab visits and reviews are conducted by site personnel and make up part of the QA/QC protocols.

RSC Consulting Pty Ltd reviewed the sampling and QA/QC procedures and practices in early 2023. There were no major outcomes related to sampling techniques and data.


Section 2 Reporting of Exploration Results

Criteria listed in the Section 1 also apply to this section.

CriteriaJORC Code explanationCommentary
Mineral tenement and land tenure status
  • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
  • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
Alkane manages the Costerfield Operation and holds a 100% interest in licences MIN4644, MIN5567, EL5432, EL5519, EL6842, EL6847, EL8320 and RL007485 which comprise the Property. There are no advanced projects in the immediate vicinity of the Property, and there are no other Augusta-style antimony-gold operations in production within the Costerfield district.

Drilling activities and the associated Kendal veining, this report, were located on MIN4644.

There are currently no known impediments to obtaining a licence to operate in the area. Alkane (or its predecessors) has been conducting both exploration activities and mining activities on mining lease MIN4644 since 2006.
Exploration done by other parties
  • Acknowledgment and appraisal of exploration by other parties.
The Costerfield Property has been explored using modern methods since 1966. Previous exploration by Mandalay Resources (2009–2025), prior to its merger with Alkane, represents the most significant period of exploration having discovered Cuffley, Youle and Shephard lodes in that time. No Exploration Results prior to Mandalay Resources have are reported in this release.
Geology
  • Deposit type, geological setting and style of mineralisation.
Narrow vein, antimony-gold and gold-only lodes are the targeted deposit styles at the Costerfield Property. Economic lode material consists of either a ‘typical’ gold-bearing quartz and carbonate with massive stibnite, or gold-only quartz and carbonate veining as seen in the Shepherd system. The Kendal deposit is situated in the western limb and hinge of the north-striking Costerfield Anticline, individual veins are controlled by the sub-vertical axial fabric imposed on the host siltstones during compression/folding, exploiting weakly developed cleavage and north-south shears in an approximately 50-70m wide zone. From structural observations it is currently thought that the mineralisation formed under an extensional stress regime, after the host structural framework was set up. Bedding-parallel faults with laminated quartz fill are common throughout the stratigraphic sequence and often offset individual veins westward with depth (up to 2-3m in the Kendal area), the offset being an apparent one as antimony-gold mineralisation post-dates most movement on the faults. The footwall of the Kendal system is complex, but generally lies on the No. 4 Fault which forms an anastomosing thrust ramp system with the below No. 3 Fault which breaches the Costerfield Anticline. The Kendal mineralisation progressively increases in westward dip with depth and finally becomes the Youle Lode within the No. 4 Fault.

Drill hole Information
  • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
    • easting and northing of the drill hole collar
    • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar
    • dip and azimuth of the hole
    • downhole length and interception depth
    • hole length.
  • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
Refer to Appendix 1 for the summary of all information material to the understanding of the exploration results from the modern Kendal drilling at Costerfield.
Data aggregation methods
  • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.
  • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
  • The assumptions used for any reporting of metal equivalent values should be clearly stated.
Reported Exploration Results are intercept length weighted with no truncation of minimum and/or maximum grade applied.

Exploration Results have been reported to represent the discrete structural shear or vein as determined by the resource geologist and Competent Persons. There is no cut-off grade for the inclusion of drill intercept if it is on structure.

Aggregates are full-width of target structures/lodes and limited in true width to underground ore development widths of mining of 4.5 m and rely on structures being interpreted as parallel in orientation and representative in nature of the continuous vein.

Gold is the dominant element of value and exploration results are reported as gold equivalent (AuEq) where:



And the AuEq factor of 2.39 is calculated:

  • at a gold price of US$2,500/oz = US$80.39/gram
  • an antimony price of US$19,000/t = US$190/10kg
  • with assumed metal recoveries of 91% Au and 92% Sb.
The Au recovery assumption and Sb recovery assumption is based on established processing and sales in respect of Costerfield. All elements included in the metal equivalent calculation have an established potential to be recovered and sold.

Relationship between mineralisation widths and intercept lengths
  • These relationships are particularly important in the reporting of Exploration Results.
  • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
  • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘downhole length, true width not known’).
Exploration Results that have been included in this announcement have been reported as drill widths and estimated true widths. Mineralisation was modelled as sub-vertical veins that were broadly north-south in strike and consistent with historical plans and sections of the Costerfield Mine. Estimated true widths were determined from assigned dip domains for each of the modelled veins. Estimated true widths from associated mineralisation was determined using an average vein orientation of 88 degrees dip, with a dip direction of 280 degrees.
Diagrams
  • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
Refer to following diagrams included in the body of this announcement:
  • Figure 1 – Regional map of the Costerfield Project
  • Figure 2 – Geological cross section of the Costerfield gold-antimony vein system
  • Figure 3 – Costerfield / Kendal area plan view
  • Figure 4 – Long section of the Kendal 501 Vein
  • Figure 5 – Long section of the Kendal 520 Vein
  • Figure 8 – Cross section looking north at mine northing 7120N
  • Figure 9 – Cross section looking north at mine northing 6780N
Balanced reporting
  • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
For veins that are interpreted though multiple drill holes all intercepts are tabulated in Appendix 1 and illustrated in the images within the body of this announcement. Any intercepts that are not interpreted at this stage, to be part of a wider structure are tabulated in Appendix 1 if the sampled grade is above 2g/t when diluted to 1.8m.
Other substantive exploration data
  • Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
Additional exploration data used to assist and validate interpretations at Costerfield include the use of surface geological mapping and a 2D seismic line.

Bulk density work using the immersion methodology was completed in 2021 on similar lode and waste material at the Costerfield deposit.

A regression formula is used for the BD of lode material:

Kendal:

  • If (Sb%>1) BD=((1.3951 × Sb%)+(100-(1.3951 × Sb%)))/(((1.3951 × Sb%)/4.56)+((100-(1.3951 × Sb%))/2.69) )
  • If (Sb%<1) BD= (0.05661 × Fe%) + 2.5259
Where:

  • Empirical formula of stibnite: Sb2S3.
  • Sb%: Antimony assay as a percentage by mass.
  • Molecular weight of antimony (Sb): 121.757.
  • Molecular weight of sulfur: (S): 32.066.
  • 1.3951 is a constant calculated by 339.712/243.514 where 339.712 is the molar mass of Sb2S3, and 243.514 is the molar mass of antimony contained in one mole of pure stibnite.
  • BD of pure stibnite: 4.56.
  • BD of unmineralised gangue: 2.69, representing a ratio of 1:3 siltstone to quartz.
  • Fe%: Iron assay as a percentage by mass.
The host rock BD of waste rock is 2.76 g/cm3.

There are no material occurrences of deleterious elements or contaminating substances.
Further work
  • The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).
  • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
The Exploration Results reported in this document refer to areas of the Costerfield Property already in production as well as potential future production areas. Future exploration will be focused on advancing these areas through to an Indicated Resource, if drilling is successful. In addition, exploration will be conducted on the margin of currently operating areas to increase mine life where possible.


CONTACT:  NIC EARNER, MANAGING DIRECTOR & CEO, ALKANE RESOURCES LTD, TEL +61 8 9227 5677
INVESTORS & MEDIA:  NATALIE CHAPMAN, CORPORATE COMMUNICATIONS MANAGER, TEL +61 418 642 556


Images accompanying this announcement are available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/fe1859e1-d5e4-4c5e-be34-91775ae5de0b

https://www.globenewswire.com/NewsRoom/AttachmentNg/bed7012e-c22b-490e-b861-333ac2c23fd3

https://www.globenewswire.com/NewsRoom/AttachmentNg/8afe8654-2c61-4fe4-9dad-213d4c6a428a

https://www.globenewswire.com/NewsRoom/AttachmentNg/fbcfab45-58bd-4719-96d7-7298ed770a75

https://www.globenewswire.com/NewsRoom/AttachmentNg/dd924b09-f601-4a6b-93b3-13c2086cd798

https://www.globenewswire.com/NewsRoom/AttachmentNg/d45c1d0e-0a1d-412d-8c57-84feff276b16 

https://www.globenewswire.com/NewsRoom/AttachmentNg/278957a5-60e6-4f55-a4a8-91a489062056

https://www.globenewswire.com/NewsRoom/AttachmentNg/725cf5d1-e86b-499d-9cdc-ab303f5a21a4

https://www.globenewswire.com/NewsRoom/AttachmentNg/42f29b9e-24e8-4a5e-b7bd-976b8e7204a3

https://www.globenewswire.com/NewsRoom/AttachmentNg/a7ba9b5c-75e7-43d4-b957-d0dd3b55eb96


FAQ

What were Alkane (ALKEF) highlight assay results from the Kendal drilling in Feb 2026?

Top direct highlights include intercepts such as 267.5 g/t Au and 5.6% Sb and 132.2 g/t Au and 19.8% Sb. According to the company, multiple veins in Kendal returned very high gold and antimony grades across narrow widths, informing ongoing mine access and modelling.

How large is the Kendal system reported by Alkane (ALKEF) at Costerfield?

Kendal now spans roughly 600m of strike with about 25 delineated veins identified. According to the company, individual veins like the 520 vein extend ~500m along strike and locally 200m in vertical extent, near current mine infrastructure.

Does Alkane (ALKEF) report a mineral resource for Kendal from the 2025 program?

No, Alkane has not yet reported a mineral resource for Kendal and modelling is ongoing. According to the company, results will be integrated into the geological model with the intention to work toward resource reporting and inclusion in life-of-mine planning.

Will Kendal drilling and development affect Costerfield production for ALKEF shareholders?

Alkane says Kendal should provide an additional source of high-grade ore for the processing plant. According to the company, near-mine development began late 2025 to access Kendal and drilling is planned to continue, aiming to add ore feed to operations.

Are the historical Kendal intercepts verified in Alkane's Feb 2026 update (ALKEF)?

Historical near-surface intercepts shown in figures are indicatory only and have not been verified by Alkane. According to the company, those historic RC results are displayed for geological context but remain unvalidated and are not used as formal resources.
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