The commodity explorer and miner Alkane Resources (ASX: ALK) has upgraded its resource of zirconia and rare earths at Dubbo in the central west of New South Wales.

One of the effects of the upgrade is to increase mine life to 36 years, which contrasts with a 20-year cash flow in its recent feasibility which gave a net present value of A$1.2 billion to the project based on a 1 Mtpa production model.

The revision of reserves gives a proved component of 8.07 Mt and probable at 27.86 Mt, totalling 35.93 Mt, and with an inferred component of 37.5 Mt giving a total resource of 73.43 Mt.

Alkane plans more drilling in early 2012, on its main deposit to test its depth below the current planned open cut operation on which the feasibility is based, as well as on a nearby and untested deposit.

Since the deposit is open at depth below the current planned operation there is the likelihood it could support open pit mining for over 100 years.

Alkane says it is on track for expected production in 2014 and it already has 61 per cent of potential production pre-committed, along with joint ventures to participate in upgrades of ore produced.

MOU's for the remainder of potential production are currently being negotiated and the heavy rare earths component of the project will make Alkane the world's largest producer of heavy rare earths outside China.

Alkane expects construction of the project to create 300 to 400 new jobs and the ongoing operation will provide 200 jobs.