Alkane Resources Doubles Tested Depth at Storheden Deposit, Extending Björkdal Gold Potential

Alkane Doubles Tested Depth at Storheden Deposit

Alkane Resources Limited (ASX: ALK; TSX: ALK; OTCQX: ALKEF) reported on December 18, 2025, that recent exploration activities have significantly extended the known depth of the gold-bearing mineralization at its Storheden Deposit. The depth drilling program, conducted at the company’s Björkdal Operation in northern Sweden, successfully intercepted gold-bearing quartz veins at a depth of 464 meters, more than doubling the previous tested depth of 200 meters.

Exploration Program Signals Resource Extension

The Storheden Deposit is located approximately 600 meters north of the active Björkdal mine, which has historically produced 1.66 million ounces (M oz) of gold since 1988. As of June 30, 2025, the Björkdal Operation held 1.40 M oz in Measured and Indicated Mineral Resources, estimated at 20.35 million tonnes (Mt) grading 2.14 g/t gold.

The recent drilling campaigns were specifically focused on depth testing and evaluating the potential for resource extension below the initial Inferred Mineral Resource estimate for Storheden. That initial estimate, calculated in 2025, stood at approximately 99 thousand ounces (koz) of gold, based on 1,769 Kt grading 1.74 g/t gold.

“Alkane has successfully doubled the tested depth extent of the Storheden Deposit, confirming the continuity of the gold-bearing system well below the current resource estimate,” the company stated in its announcement.

The successful interception at 464m suggests a significant vertical continuity for the gold mineralization, which could substantially increase the overall resource base for the Storheden Deposit once follow-up drilling and resource modeling are completed. This development is material for Alkane as it seeks to extend the operational life and resource inventory at its flagship Swedish gold asset.

Björkdal Operation Context and Forward View

The Björkdal Operation remains a key asset for Alkane, providing steady gold production and a platform for regional exploration success. The historical production and current resource base underscore the importance of the ongoing exploration efforts, particularly those aimed at converting potential mineralization into defined resources.

• The Björkdal mine has produced 1.66 M oz of gold since operations began in 1988.
• Current Measured and Indicated Mineral Resources stand at 1.40 M oz (20.35 Mt grading 2.14 g/t gold) as of June 30, 2025.
• The Storheden Deposit's initial Inferred Mineral Resource was 99koz (1,769 Kt at 1.74 g/t gold) in 2025.

The positive depth extension results at Storheden are expected to lead to further drilling and geological modeling in 2026, aimed at upgrading the confidence level and size of the mineral resource estimate. Success in this area would enhance the long-term value proposition of the Björkdal Operation for Alkane Resources and its shareholders.