Alkane Resources Replaces All Mined Gold at Björkdal, Lifting Reserves to 563koz
Key Takeaways
- Björkdal Ore Reserves grew 3.7% to 563,000 oz as of 30 June 2026, replacing all 48,000 oz of FY2026 production depletion and delivering net growth — not just replacement.
- The Storheden deposit, located 600 m north of the operating mine, entered the resource statement for the first time with 87 koz Indicated and 125 koz Inferred, traced across an 800 m strike length and to depths of 450–500 m.
- Total Measured and Indicated Mineral Resources stand at 22.47 Mt at 2.07 g/t Au for 1,497 koz, with a further 611 koz Inferred, providing a deep conversion pipeline behind the current reserve base.
- Open pit stripping at Nylunds North Pit is underway now, with first ore expected in October 2026, lifting planned FY2027 mill throughput to 1.4 Mt from approximately 800 kt of underground ore in FY2026.
- The Ore Reserves support a nine-year mine life at Björkdal plus one additional year from Norrberget, with an environmental permit application for the Storheden underground extension planned for late 2026 or early 2027.
Björkdal Ore Reserves grow to 563,000 ounces as Alkane replaces mined gold and adds new material
Alkane Resources released its annual resources and reserves update for the Björkdal Operation in Sweden on 11 September 2026, with an effective date of 30 June 2026. Total Ore Reserves increased 3.7% to 563,000 oz despite absorbing 48,000 oz of production depletion during the year, meaning the operation replaced every ounce mined and then added more.
That distinction matters. This is not a return to a prior reserve level — it is net growth.
The full resource picture is equally solid. Measured and Indicated Mineral Resources stand at 22.47 Mt at 2.07 g/t Au for 1,497 koz, with an additional Inferred Mineral Resource of 12.09 Mt at 1.57 g/t Au for 611 koz.
Year-on-year Ore Reserve comparison
The table below shows the movement in Björkdal’s Ore Reserves between 30 June 2025 and 30 June 2026, drawn from Table 4 in the source announcement.
| Category | Tonnage (kt) — FY25 | Grade (g/t Au) — FY25 | Gold (koz) — FY25 | Tonnage (kt) — FY26 | Grade (g/t Au) — FY26 | Gold (koz) — FY26 |
|---|---|---|---|---|---|---|
| Proved | 848 | 1.54 | 42 | 1,155 | 1.63 | 61 |
| Probable | 12,200 | 1.28 | 501 | 11,966 | 1.30 | 502 |
| Total | 13,048 | 1.29 | 543 | 13,121 | 1.33 | 563 |
Reserve replacement at or above the rate of annual production is a key metric investors use to assess mine longevity. Alkane has cleared that bar for FY2026 at Björkdal with room to spare.
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What drives the Björkdal reserve upgrade — and why it matters for investors
Storheden deposit included in the resource statement
The primary driver of Mineral Resource growth in this update is the inclusion of the Storheden deposit. Located approximately 600 m north of the Björkdal Mine, Storheden contributed 87 koz Indicated and 125 koz Inferred to the total resource, entering the statement with 1,075 kt at 2.51 g/t Au in the Indicated category.
Drilling completed by Alkane across its 2025–2026 programs (detailed in ASX announcements dated 19 December 2025 and 29 July 2026) has traced Storheden along a strike length of approximately 800 m, a width of approximately 1,200 m, and to depths of approximately 450–500 m. That is a meaningful footprint for a deposit adjacent to an operating mine, and it opens the door to future conversion into reserves as definition drilling continues.
Understanding Mineral Resources versus Ore Reserves
These two terms represent different levels of confidence in the same gold in the ground, and the distinction shapes how you should read any resources and reserves update.
A Mineral Resource is an in-ground estimate of gold that may be economically extractable. It is categorised by confidence level — Measured (highest), Indicated, and Inferred (lowest) — under the JORC Code 2012 framework used here. A Mineral Resource does not mean the gold can be mined profitably; it means the geology is understood well enough to estimate it.
An Ore Reserve is a subset of the Mineral Resource that has been put through additional rigour. Engineers apply real-world modifying factors — mining method, dilution, costs, metallurgical recovery, environmental approvals — to demonstrate that the material is technically and economically mineable. Only Measured and Indicated Resources can be converted to Ore Reserves. Inferred Resources, by definition, carry too much uncertainty.
For investors, reserve replacement is the metric to watch. If a mine consistently replaces fewer ounces than it mines, the reserve base shrinks and the mine life shortens. When it replaces more than it mines, as Björkdal has done here, it signals that the exploration pipeline is keeping pace with production draw-down.
Open pit restart and a nine-year mine life underpin the growth story
The Ore Reserves support a nine-year mine life for Björkdal, plus one additional year from the Norrberget deposit. That timeframe is underpinned by a series of operational milestones already in motion:
- Open pit stripping at Nylunds North Pit is currently underway, with first ore expected in October 2026
- Crown Pillar mining at the Main Pit is planned for 2027, beginning with moraine and loose rock removal on the western side
- FY2026 underground ore production is approximately 800 kt; FY2027 planned mill throughput: 1.4 Mt, comprising 273 kt from the open pit and 325 kt from stockpile
- Norrberget open pit mining is planned for FY2036 as a late mine-life supplement
- The tailings storage facility (TMF) expansion is planned across CY2026–2027 to extend capacity to 2033
- An environmental permit application covering the Storheden underground extension is planned to be lodged in late 2026 or early 2027
The open pit restart is significant for your read of the production profile. Adding a second ore source alongside the underground operation introduces feed diversity, which reduces the risk of throughput shortfalls from a single source. The stockpile acts as a third buffer. Together, these three feed sources are designed to keep the plant running at approximately 1.4 Mtpa across the life of mine.
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A proven operation with room to grow
Björkdal has been in continuous production since 1988. Since 1989, the plant has processed more than 41.1 Mt of ore to produce approximately 1.73 Moz Au. Plant gold recovery averaged 86.0% during CY2025, within a historical range of 85.4% to 90% spanning 2011 to 2026. These are consistent numbers for a mature, well-understood operation.
Alkane holds Björkdal as one of three producing assets alongside Tomingley in New South Wales and Costerfield in Victoria. Near-mine exploration is ongoing at all three operations, and the Storheden inclusion at Björkdal is the clearest current example of what that strategy can deliver.
Alkane’s near-mine exploration strategy is producing results across its broader portfolio, with Tomingley drilling results from August 2026 adding to the picture of an operator actively replenishing its resource base at multiple assets simultaneously.
Sweden provides a stable, well-regulated mining jurisdiction. The operation holds full environmental permits for its current activities, and the TMF is permitted and in compliance with Swedish legislation. The combination of reserve growth, an upcoming open pit restart, and disciplined exploration investment positions Björkdal as a low-risk, long-life asset within Alkane’s portfolio.
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