16 November 2016
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ASX Code: AGS
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ZEALOUS PROSPECT DRILLING RESULTS
WILCHERRY PROJECT JOINT VENTURE, SOUTH AUSTRALIA
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Alliance is pleased to report the results from a three hole drilling program by Tyranna Resources Ltd (Tyranna) at the Zealous prospect located within the Wilcherry Project, South Australia, a joint venture between Alliance (51%) and Tyranna (49%).
The drilling, completed prior to the commencement of the joint venture, primarily targeted a magnetic anomaly thought to represent a potential source for the tin previously intersected at the prospect, however there is insufficient magnetism in the core to explain the anomaly.
Only one hole intersected anomalous tin, 28m @ 469ppm Sn from 41m in 16ZLDH003.
However, significant lead (Pb), zinc (Zn) and uranium (U) results were intersected, e.g. 63m @ 1.06% Pb from 36m and 129m @ 0.24% Zn from 69m, including 3m @ 747ppm U in 16ZLDH003. Refer to Table A.
Table A - Significant intercepts from latest drilling
Hole ID
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Northing (GDA04)
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Easting (GDA94)
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Total Depth (m)
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Azimuth
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Dip
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Depth From (m)
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Depth To (m)
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Width (m)
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Sn (%)
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Cu (%)
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Pb (%)
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Zn (%)
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U (ppm)
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16ZLDH001
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6386051
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642628
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221.8
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69
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-70
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No signi fi cant results
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16ZLDH002
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6386063
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642806
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291.2
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264
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-60
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250.9
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255.5
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4.6
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0.28
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0.34
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16ZLDH003*
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6386127
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642534
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204.7
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70
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-60
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36
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99
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63
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1.06
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0.21
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incl.
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41
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69
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28
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0.05
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1.85
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incl.
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63
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69
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6
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4.02
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and
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69
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198
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129
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0.24
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incl.
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69
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79
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10
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0.12
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0.7
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0.84
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incl.
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90
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93
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3
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0.39
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0.21
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0.16
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747
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*There was substantial core loss in hole 16ZLDH003, with numerous intervals over the entire length of the cored hole from 66 to 204.7m depth which aggregates 44% core loss.
The lead-zinc anomalism has resulted in Alliance geologists revisiting the 2012-2014 drilling results by Trafford Resources Ltd. Significant base metal intercepts from the previous drilling programmes at Zealous are listed in Table B. Figures 2 and 3 are plans showing distribution of drilling intercepts for tin, and lead and zinc, respectively.
The results of this early stage review indicates a significant number of large, low grade lead-zinc intercepts at Zealous, which in conjunction with the tin results and known geology of the district, supports a distal mineralised environment which may be suitable for the development of a replacement sulphide hosted tin deposit similar to Renison, Tasmania.
The 2012 discovery of high grade tin in this region indicates that a reduced tin-bearing granite has intruded the Palaeoproterozoic sediments, which include multiple fold-repeated horizons of dolomite (the favourable host rock for replacement tin deposits), and potentially represents a new and significant tin province in South Australia.
Many positive geological vectors are present within the Project area. Alliance will continue to review the extensive existing drilling database and has planned an airborne electromagnetic geophysical survey over the Project area to test for conductors associated with massive sulphide (tin, copper-gold, lead-zinc-silver) deposits.
Background
The Project is located within the southern part of the Gawler Craton in the northern Eyre Peninsula and comprises six exploration licences covering 1,074 km2.
Figure 1: Wilcherry Project JV tenements and prospects on background gravity image
The Wilcherry Project area is prospective for economic concentrations of gold, tin, copper, zinc, lead, silver, iron, bismuth, tungsten and uranium in a variety of mineralisation styles.
The area is predominantly overlain by a shallow veneer of transported cover that has prevented exploration by early prospectors. Drilling by modern explorers has identified significant mineralised systems hosted within Palaeoproterozoic calcareous and iron-rich metasediments which are intruded by Hiltaba Suite Granites that are responsible for widespread gold, uranium and base metal mineralisation in the Gawler Craton. The recent discovery of high grade tin, which had previously not been recognised in the district, suggests a more complex mineralised history than previously thought.
There are twenty eight (28) existing exploration targets within the Project area. The three highest priority exploration targets at the Project are currently the Weednanna and Weednanna West gold prospects and the Zealous tin prospect.
Drilling from 2012-2014 at the Zealous prospect intersected significant tin grades. Refer to Alliance ASX announcement dated 23 September 2016 for further details.
In August 2016, Tyranna drilled at Zealous with the assistance of the South Australian government PACE funding program.
Planned Work
Continue reviewing the existing database of surface geochemistry (>9,000 samples), geophysics and drilling (>3000 holes); screening of historic drilling pulps for economic concentrations of base metals by portable XRF analyses prior to more accurate multi-element analyses; an airborne electromagnetic geophysical survey over the Project area to test for conductors associated with massive sulphide (tin, copper-gold, lead- zinc-silver) deposits; 3D inversion modelling and interpretation of aeromagnetic data; infill ground gravity surveys, 3D inversion modelling and interpretation of gravity data; re-logging of regional drill hole geology and alteration; integration of all data in order to identify and rank conceptual exploration target areas and drill testing of priority targets.
Steve Johnston Managing Director
Alliance Resources Ltd has projects in South Australia, Western Australia and New South Wales for gold and base metals. For further information about Alliance Resources Ltd, please visit www.allianceresources.com.au
Figure 2: Zealous Prospect - Plan view of tin intercepts
Figure 3: Zealous Prospect - Plan view of lead and zinc intercepts