PERTH, Australia – Alkane Resources Limited (ASX: ALK; TSX: ALK; OTCQX: ALKRY) has reported a significant advancement in its Costerfield Operation, announcing the latest exploration results for the True Blue deposit. Located just 2 km west of the active underground workings in central Victoria, Australia, these new findings are poised to bolster the company’s plans for the deposit’s development, according to an update issued on July 05, 2026.
Enhanced Geological Understanding Drives Development Confidence
The recent exploration program at True Blue involved an additional 33 holes, primarily targeting the Freeman veining system. This infill drilling focused on the upper portion of the deposit, a strategic move designed to refine the geological model. Alkane stated that this intensive drilling has ‘significantly increased confidence in understanding the vein geometry and grade-controlling structures.’
While the higher resolution data has revealed ‘further veining complexity’ that breaks up a previously interpreted high-grade panel, this enhanced understanding is crucial for robust mine planning. The company’s previous update on the deposit was detailed in an ASX announcement on October 15, 2025, titled ‘Costerfield Resource and Reserve Statement,’ making this current update a critical step in advancing the project from exploration to potential development.
High-Grade Assays Highlight True Blue’s Potential
The drilling program yielded a series of compelling assay highlights, underscoring the high-grade nature of the gold-antimony mineralization at True Blue. These results are critical for defining the economic viability and future extraction strategies for the deposit.
From Freeman (700) Vein:
- 57.6g/t gold and 25.4% antimony over 0.25m (ETW 0.17m) in TB055
- 20.9g/t gold and 19.5% antimony over 0.31m (ETW 0.22m) in TB057
- 4.3g/t gold and 6.4% antimony over 0.8m (ETW 0.63m) in TB080
- 30.1g/t gold and 14.8% antimony over 0.27m (ETW 0.17m) in TB065
From Associated Veins:
- 84.1g/t gold and 15.4% antimony over 0.48m (ETW 0.36m) in TB084 (702 splay)
- 17.9g/t gold and 1.7% antimony over 3.2m (ETW 1.4m) in TB053 (705 vein)
- 19.3g/t gold and 29.3% antimony over 0.22m (ETW 0.16m) in TB079
- 11.2g/t gold and 5.7% antimony over 0.77m (ETW 0.54m) in TB055
These results, particularly the high gold and antimony grades over significant widths, demonstrate the robust mineralization present within the True Blue deposit and its associated structures. The presence of both gold and antimony is a key characteristic of the Costerfield operation, with antimony being a critical mineral with increasing industrial demand.
Management Optimistic on Development Pathway
Nic Earner, Alkane’s Managing Director & CEO, expressed confidence in the company’s forward strategy. “The infill drilling of True Blue gives us the geological confidence needed to proceed with our plans for development of the deposit,” Earner stated. He further added, “The geological context gained from the drilling has also enhanced the model for further targeting along the True Blue Corridor.”
Acknowledging the geological intricacies, Earner noted, “True Blue is certainly more complex than our original estimates, we are encouraged by the progress made and excited by the targets yet to be tested.” This statement highlights a pragmatic approach, recognizing challenges while maintaining an optimistic outlook on the deposit’s potential and the company’s ability to navigate its complexities.
Future Exploration and Historical Context
Alkane’s future exploration drilling at True Blue will extend beyond the current infill areas. The company plans to target along-strike repetitions of mineralization both to the north and south of the current deposit. Additionally, investigations will focus on establishing a potential link between True Blue and the West Costerfield prospect, suggesting a broader mineralized system within the Costerfield corridor.
The Costerfield gold-antimony deposit boasts a rich history, with its discovery dating back to 1861, following the identification of antimony in the district as early as 1853. Prospectors, initially drawn by the McIvor (Heathcote) alluvial gold rush, rapidly opened several lodes along a 3km corridor. Historical production, primarily from the Costerfield (Main), Bombay, and Minerva mines, occurred in two main phases between 1861-1883 and 1903-1924, with a brief redevelopment attempt from 1933-1939. Alkane Resources Ltd currently holds 100% ownership of this historically significant and presently active mining field.
The latest drilling results from True Blue represent a pivotal moment for Alkane Resources, providing the necessary geological clarity to advance development plans for a key component of its Costerfield Operation. With high-grade assays confirming significant mineralization and a clear path for future exploration along the True Blue Corridor, the company is well-positioned to capitalize on this valuable gold-antimony asset in central Victoria.
