ASX RELEASE
29 JULY 2016
CODE: ALY
BOARD OF DIRECTORS
Mr Oscar Aamodt
Non-Executive Chairman
Ms Liza Carpene
Non-Executive Director
Mr Lindsay Dudfield
Non-Executive Director
Mr Anthony Ho
Non-Executive Director
ISSUED CAPITAL
SHARES 230,788,035
OPTIONS 10,500,000 (Unlisted)
PROJECTS
BRYAH BASIN (80-100%)
KARONIE (100%)
LACHLAN (earning up to 80%)
Suite 8/8 Clive Street WEST PERTH WA 6005
Phone: +61 8 9481 4400
Facsimile: +61 8 9481 4404 www.alchemyresources.com.au
JUNE 2016 QUARTERLY REPORT
Highlights
LACHLAN PROJECTS (NSW) - gold & base metals
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High-grade gold - base metal projects in central Lachlan province secured through a Farm-in and Joint Venture agreement with Heron Resources Ltd (ASX: HRR)
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Drill-ready, high-grade gold - base metal targets identified at Overflow
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Initial RC-diamond drilling to commence upon receipt of statutory approvals
KARONIE PROJECT (WA) - gold
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Acquisition of significant gold prospective land-holding at Karonie in the Eastern Goldfields
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High-grade gold targets identified at multiple prospects
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Initial drill testing to commence upon grant and receipt of statutory approvals
BRYAH BASIN PROJECT (WA) - gold & base metals
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Base metals exploration continued through Independence Group NL (ASX: IGO) Farm-in/Joint Venture, with aircore drilling program to commence in August
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Gold exploration continued through Northern Star Resources Ltd (ASX: NST) Farm-in/Joint Venture, with planning of follow-up auger geochemical drilling of multiple gold targets
CORPORATE
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Cash at 30 June 2016 - $1.2M
Alchemy Resources Ltd (ASX: ALY; "Alchemy" or "the Company") is an Australian gold and base metal exploration company focused on growth through the discovery and development of gold and base metal resources within Australia.
The Company recently entered a Farm-in and Joint Venture Agreement on the Lachlan Projects in New South Wales (see ASX announcement dated 30 May 2016) where it will look to advance targets through discovery and extensional drilling to define sufficient resources to underpin a profitable near-term development scenario. This project is in a well-endowed gold and base metal district with significant upside in both gold and copper.
Alchemy also recently acquired a significant gold-prospective land package in the Karonie greenstone belt (see ASX announcement dated 24 May 2016) in the Eastern Goldfields region in Western Australia where it intends to test high-grade gold targets through extensional drilling. The Karonie Project is in one of Australia's premier gold provinces with significant potential to discover additional gold resources.
Alchemy maintains its interest in the Bryah Basin Project in the emerging gold and base metal-rich Gascoyne region of Western Australia where farm-in and joint venture partners, Independence Group NL (ASX: IGO; "IGO") and Northern Star Resources Ltd (ASX: NST; "Northern Star") are continuing to advance base metal and gold exploration, respectively.
In the June 2016 Quarter, the focus was on compiling historic exploration information and the assessment and planning for the commencement of field activities at the new Lachlan Projects and Karonie Project.
Lachlan Projects (NSW) (Alchemy earning up to 80%)
Alchemy has entered into a Farm-in and Joint Venture Agreement with Heron Resources Ltd (ASX: HRR; "Heron") to earn up to an 80% interest in three gold and base metal projects in the highly prospective central Lachlan province (Figure 1). The Lachlan Projects consist of the Overflow Gold-Base Metal Project, the Eurow Copper- Gold Project and the Girilambone Copper Project. Each of these projects contains identified gold and / or base metal targets, including drill-ready priority targets at the Overflow Project.
The Lachlan projects represent a strategic exploration project acquisition for Alchemy, with a large 674km2 land package in the underexplored central Lachlan province. The projects are proximal to high profile mining centres in the central Lachlan, including Hera/Nymagee (Aurelia Metals Ltd), Mallee Bull (Peel Mining Ltd), Mineral Hill (KBL Mining Ltd), Tritton/Murrawombie (Aeris Resources Ltd) and the Parkes mining centre (Figure 1).
Overflow Gold-Base Metal Project
The Overflow Gold-Base Metal Project ("Overflow") consists of four exploration licences covering 390km2 located over a 50km long zone from 75km south-east of Cobar to adjacent to KBL Mining's Mineral Hill operation (Figure 1). The project is located along the northern extension of the Gilmore Suture within Ordovician-Devonian metasediments and prospective for epithermal and Cobar-style gold and base-metal mineralisation.
Overflow is centred on the historic Overflow mining centre (Figure 2), a past producer of gold, silver and lead, and has been the focus of previous exploration in the area since mining ceased in 1942. Mineralisation at Overflow is structurally-controlled, high-grade gold-silver with base metal credits, with known zones having relatively short strike lengths but potentially long in the down-plunge direction, typical of Cobar-style mineralisation.
Historic drilling at Overflow has returned a number of significant high-grade intercepts, including:
BOBRCPC6 4.6m at 8.49g/t gold, 79g/t silver, 13.5% zinc, 7.1% lead (from 185.4m) TBB001 10m at 4.44g/t gold, 21g/t silver, 3.0% zinc, 1.3% lead (from 163m) TBB006 16m at 1.13g/t gold, 88g/t silver, 1.15% zinc, 0.43% lead (from 162m)
TBB008 7m at 1.67g/t gold, 135g/t silver, 1.3% zinc, 0.5% lead (from 198m) & 7m at 5.46g/t gold, 19g/t silver, 1.9% zinc, 1.4% lead (from 236m)
TBB017 6m at 4.69g/t gold, 39g/t silver, 2.4% zinc, 1.9% lead (from 121m) & 6m at 7.55g/t gold, 29g/t silver, 3.6% zinc, 1.5% lead (from 136m)
Figure 1: Lachlan projects - Overflow, Eurow & Girilambone - Farm-in / Joint Venture Agreement with Heron Resources Ltd.
Outside of the historic mine area a number of regional prospects have been delineated and warrant further exploration. Along strike to the south of the Overflow mine, at the BOZ target (Figure 2), a single drill hole, OFTRC005, targeted an IP chargeability anomaly was terminated at the edge of the anomaly. The drill hole ended in weak mineralisation (12m at 0.42g/t gold to end of the hole) with visible chalcopyrite identified, and it represents a priority target for further drill testing.
At the Parkvale target (Figure 2), narrow high-grade intersections, including 0.7m at 5.7% copper and 1.2% lead in BO-1A drilled in 1977, have not been followed up. Coherent gold-zinc in soil anomalism over an area of 600 x 400 m at Prettyview South (Figure 2) has not been drilled tested. At Black Range Tank and Airport (Figure 2), outcropping gossans and limited shallow drilling has returned base metal anomalism with semi-coincident EM anomalies.
Figure 2: Overflow Gold-Base Metal Project showing Overflow mining centre, historic drilling & mineral occurrences, gold & base metal prospects, over aeromagnetic image and satellite imagery.
Eurow Copper-Gold Project
The Eurow Copper-Gold Project ("Eurow"), located 30 km southeast of Parkes (Figure 1), covers Ordovician and Devonian-aged meta-sediments intruded by Silurian and Devonian granites and proximal to the intersection of the Narromine-Coolac Fault Zone and the Lachlan Transverse Zone. The Project area contains the historic Eurow- Vychan copper-gold workings where drilling by previous companies below the workings returned high-grade intercepts of 8m at 2.94% copper and 0.85g/t gold from 47m, 3m at 4.0% copper and 1.25g/t gold from 73m, and
4.4 metres at 1.57% copper and 0.63g/t gold from 212m.
Copper-gold mineralisation at Eurow appears to be planar and stratiform and is associated with semi-massive and breccia zones of pyrite-pyrrhotite-chalcopyrite. The style of mineralisation is both conductive and magnetic with targets identified to the north and south of the historic workings. Heron undertook shallow aircore drilling in late 2013 on targets north and south of the historic workings that returned anomalous copper results. The drilling, which was hampered by thick clay zones, did not reach target depths and warrants further drill testing.