The processing plant will continue to operate if the current open-cut TGO goes underground, a decision to be made by Alkane in December.

It would also be used if the discovery of “strong gold mineralisation” at nearby prospects extended the proposed underground operation or established satellite mines.

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The Australian Securities Exchange recently announced Alkane’s exploration progress at prospects including Roswell and Glen Isla where reverse circulation drilling continues.

“As we thought there is good mineralisation which may well end up being economic in time,” Alkane’s managing director Nic Earner told the Daily Liberal.

“In an ideal world we would find mineral deposits similar to those we found at Tomingley and we would then develop those with time and either run them in parallel or subsequent to underground (mining) at Tomingley.”

Mr Earner said they might be “close enough that they are reached by the underground” mining or require the building of stand-alone mines. “That all depends on depth, economics and other factors,” he said. “What we would not do is set up a new processing plant.”

Alkane reports of a  “gold mineralisation corridor between Tomingley and Peak Hill, and beyond. It is currently defining the likes of grade and quantity of gold at prospects within six kilometres of the TGO.

“We obviously hope to be in the region for quite some time,” Mr Earner said.