The board of Alkane Resources, which owns Tomingley Gold Operations south-west of Dubbo, has approved the transition from open-cut to underground mining. 

Managing director Nic Earner said the company would prefer to recruit underground miners already living in the region to fly-in, fly-out workers.

“We are a district with a pretty deep pedigree in underground mining,” he said.

“But we don’t really know who will potentially want to make a change.”

Development of the 40-month and $25 million underground operation is scheduled to begin in early 2019 with the “first ore” to be brought to the surface by mid-year.

MAP: Where is the mine located …

It will be stockpiled until the TGO processing plant is back in action late in 2019. 

“There’s 108,000 ounces to be mined but then after you have recovery through the processing plant you end up pouring 93,000 ounces,” Mr Earner said. 

“At today’s prices it would generate revenue of $153.5 million.”

Mr Earner said the company expected to find more gold underground at TGO and its exploration efforts between Tomingley and Peak Hill were designed to “find extra resources that can feed into the processing plant” and extend the life of the new venture.