Alkane Resources Limited (ASX: ALK; TSX: ALK; OTCQX: ALKRY) says it has a major exploration development underway. The company discovered a new high-grade domain within the Cuffley Lode.
The discovery sits within the Costerfield gold-antimony field in Victoria. Alkane completed 23 new holes across an unmined Cuffley area. Another 17 holes tested the Sub-KC domain below the deposit.
Results confirmed exceptionally high-grade gold and antimony mineralisation. The new Cuffley grade pod occurs between historical northern and southern high-grade panels.
The area was previously considered lower grade because of faulting. Alkane now plans to incorporate the pod into its mine schedule. This could provide near-term operational value.
Alkane’s Cuffley drilling has identified a new high-grade mineralised domain. [Courtesy: Alkane Resources]
Cuffley Drilling Delivers Exceptional Grades
The latest drilling produced several standout results across the Cuffley system. Four holes returned more than 10g/t gold equivalent over mining width. The strongest result came from hole AD270.
It returned 580.9g/t gold and 24% antimony over 0.61m. The interval included 0.25m grading 1360g/t gold and 19.7% antimony. Hole AD265 returned 168.9g/t gold and 33.5% antimony over 0.9m.
AD292 delivered 60.1g/t gold and 15.2% antimony over 1.26m. AD275 returned 124g/t gold and 48.6% antimony over 0.23m. These results highlight strong mineralisation within the previously sparsely drilled area.
- AD270: 580.9g/t gold and 24% antimony over 0.61m.
- AD265: 168.9g/t gold and 33.5% antimony over 0.9m.
- AD292: 60.1g/t gold and 15.2% antimony over 1.26m.
- AD275: 124g/t gold and 48.6% antimony over 0.23m.
Signals Fresh Upside Alkane Resources At Sub-KC
Alkane also reported encouraging results from the deeper Sub-KC system. Four target-testing holes covered 3705.32m of drilling. Ten parent and two wedge holes added another 8168.28m.
Several ore-grade intercepts were identified within the system. CSK044 returned 28.2g/t gold over 0.99m. CSK043 returned 73.2g/t gold and 18.8% antimony over 0.19m. The same hole returned another 192g/t gold over 0.17m.
CSK048 delivered 16.1g/t gold and 12.7% antimony over 0.37m. These results support continued exploration across Sub-KC. They also provide structural information for future drilling campaigns.
Sub-KC drilling returned multiple high-grade gold intercepts at depth below Costerfield. [Courtesy: Alkane Resources]
Why The Costerfield Discovery Matters
The discovery challenges previous assumptions about mineralisation within the Cuffley area. Alkane said the new pod lies in a sparsely drilled zone.
Earlier interpretations suggested lower grades because of a crosscutting fault. New drilling has now shown significant high-grade mineralisation.
The pod is also readily accessible from existing infrastructure. This factor could improve its potential development pathway. Alkane Managing Director and CEO Nic Earner highlighted the discovery’s significance.
He said the result demonstrates the value of revisiting older geological models. The company intends to continue testing overlooked mineralisation. Further targets will also be generated across its leases.
- The pod sits near historical high-grade Cuffley panels.
- Existing infrastructure provides direct access to the area.
- The discovery is being incorporated into the mine schedule.
- Further exploration will challenge existing geological assumptions.
Costerfield Has A Long Mining History
Costerfield has hosted gold and antimony production for more than a century. The deposit was discovered in 1861. Antimony had already been identified locally in 1853.
Historical mining occurred during two major periods. Production ran between 1861-1883 and 1903-1924.
Another redevelopment attempt occurred between 1933 and 1939. Modern mining has continued since 2006. Australian Gold Development began underground operations at Augusta that year.
Mandalay Resources purchased the Costerfield operation in 2010. Mining progressively moved north through the field. Cuffley and N Lode became important areas from 2014. Brunswick followed in 2018. Alkane now owns the Costerfield operation.
What The Geology Means For Growth
The Cuffley and Sub-KC deposits form part of Costerfield’s Central Corridor. This corridor follows the apex of the Costerfield Dome.
The structure contains Silurian marine siltstones and turbiditic intervals. Cuffley occupies a vertical shear along the Cuffley Anticline. Mineralisation occurs through quartz-carbonate veining and massive stibnite.
Gold occurs within both quartz and stibnite. Sub-KC lies down-dip along the King Cobra Fault. Its mineralisation is mainly associated with the Lyre Fault.
Several vein types can host coarse, high-grade gold. This geological setting offers multiple targets for additional drilling. Structural understanding should guide future exploration across the system.
- Cuffley follows a major anticline-related structural setting.
- Sub-KC occurs along the continuation of the same geological system.
- Fault structures influence mineralisation distribution.
- Multiple vein types can carry high-grade gold.
What Happens Next For Alkane Resources
Alkane has already integrated the new Cuffley grade pod into its mine plan. The company expects the area to be mined. Considerable exploration potential remains within the Sub-KC domain. However, future drilling may require surface access. Additional development could also improve drilling angles into target areas.
Testing north and south of Sub-KC provided useful structural information. Holes approximately 400m north encountered a shifted Lyre Fault. Much of the favourable fold limb appeared faulted out.
Holes around 300m south found an intact anticlinal position. They encountered anomalous gold but no ore-grade intercepts. Alkane will use these findings to refine future targets. For more such insights, visit Colitco.com
Also Read: Netwealth June 2026 Update Signals Strong Future Growth in Australia
High-Grade Gold Pocket At Costerfield: FAQs
Q1: What did Alkane Resources discover at Costerfield?
Ans: Alkane discovered a new high-grade Cuffley domain within a previously sparsely drilled area. The pod contains exceptional gold and antimony grades and is now planned for mining.
Q2: What was the strongest Cuffley result?
Ans: AD270 returned 580.9g/t gold and 24% antimony over 0.61m. The interval included 0.25m grading 1360g/t gold and 19.7% antimony.
Q3: How much drilling targeted Cuffley?
Ans: Alkane completed 23 new holes totalling 3,255m of diamond drill core. The programme produced 18 new intercepts within the mineralised structure.
Q4: What is planned for the new Cuffley pod?
Ans: The grade pod has been incorporated into the Costerfield mine plan. Alkane also plans further exploration across the Sub-KC domain.
Disclaimer
This piece talks about exploration findings that were reported by Alkane Resources Limited on 24 August 2026. Just keep in mind exploration results don’t promise any future mineral resources, mine output, or even financial returns. The reported grades and the intervals are based on drilling information released by the company. Before any investment choice, investors really should read the full announcement plus the related technical disclosures. This article is only meant to be informational, and it does not count as financial advice.
Source Links
Alkane Resources official website
Luke Carlino is a seasoned Copywriter, Content Strategist, and Social Media Manager specialising in Mining, Finance, and Business journalism. With more than a decade of industry experience, he brings rigorous editorial standards and commercial acuity to every project.
