ALKANE Resources is not resting on its laurels as it waits for development approval for is ambitious $1 billion Dubbo Zirconia Project.
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A spokeswoman for the multi-commodity producer and explorer reports it has completed a drilling program at the Elsienora Project, not far from Blayney.
She said the testing of surface geochemical and geological targets had produced "encouraging results".
"A zone of gold mineralisation has been identified at the Cuddyong Prospect and a second, unrelated zone of gold-silver-barium mineralisation, was identified at the Picker Prospect," the spokeswoman said.
The Elsienora Project is located about 75 kilometres south of Blayney and Regis Resources' McPhillamys gold deposit.
In August 2013 Alkane Resources reached an agreement with Isabella Minerals Pty Ltd, a wholly-owned subsidiary of Balamara Resources Ltd, to "farm into" the Elsienora Project.
Under the agreement, it can acquire an 80 per cent interest by spending $500,000 on exploration across three years, at least half of which must be spent within two years.
The Australian Securities Exchange has announced that after Alkane Resources earned the 80 per cent interest, Isabella would have the option to "pro-rata contribute or dilute".
Alkane Resources names the Tomingley Gold Operations as its most advanced projects, along with the yet-to-be-approved Dubbo Zirconia Project at Toongi, south of Dubbo.