Alchemy Resources Announces Promising Exploration Results at Lachlan Project
ALY (ALY) Share Update September 2024 Monday 23rd
Alchemy Resources Identifies High-Priority Exploration Targets at Lachlan Project
Alchemy Resources Limited (ASX: ALY) has announced promising exploration results from its Lachlan Project in New South Wales, identifying high-priority targets for further testing.
Instant Summary:
- Surface mapping and sampling completed at Overflow and Yellow Mountain Prospects.
- Rock chip samples confirm high-priority exploration targets for further testing.
- Overflow Prospect shows potential for mineralised structures to extend up to 1200m north and 300m south.
- Yellow Mountain Prospect reveals high-grade Cu-Au-Pb-Zn mineralisation over two extensive zones.
- Best sample results include 22.7g/t Au and 28.4% Cu.
Exploration Details
The recent fieldwork at Overflow and Yellow Mountain Prospects, part of Alchemy Resources' Lachlan Project, has yielded significant results. Surface mapping and sampling were conducted in collaboration with geological consulting firm Lithify to better understand the structural deposits and refine targets for upcoming drill programs.
At the Overflow Prospect (EL5878), the study highlighted substantial potential for mineralised structures to extend up to 1200m north and 300m south of the existing 342koz AuEq resource. High-grade gold rock chips were returned from surface unmined outcrops, indicating possible extensions of existing mineralisation.
Yellow Mountain Prospect
The Yellow Mountain Prospect (EL8356) mapping and sampling revealed high-grade Cu-Au-Pb-Zn mineralisation traceable over two extensive zones, which have been poorly tested by modern exploration methods. Notably, rock chips were last taken 24 years ago, and no new drilling has occurred since 1986.
Some of the best results from recent sampling at Overflow Prospect included:
- Sample ID: ALOF004 - 22.7g/t Au, 0.12% Cu, 0.68% Pb
- Sample ID: ALOF006 - 4.91g/t Au, 0.23% Cu, 0.89% Pb
- Sample ID: ALOF021 - 4.45g/t Au, 0.43% Pb (Mullock)
- Sample ID: ALOF023 - 14.95g/t Au, 0.89% Cu, 0.45% Pb, 26.2g/t Ag (Mullock)
At Yellow Mountain Prospect, notable results included:
- Sample ID: ALYM063 - 18.2% Pb, 20.4% Zn, 1.19g/t Au, 0.14% Cu (Mullock)
- Sample ID: ALYM064 - 28.4% Cu, 1.59g/t Au, 7.2% Pb, 0.65% Zn (Mullock)
- Sample ID: ALYM066 - 2.05% Cu, 2.34g/t Au, 8.5% Pb, 0.44% Zn
- Sample ID: ALYM067 - 1.88g/t Au, 0.51% Cu, 1.45% Pb, 720ppm Mo
Next Steps
Alchemy Resources has completed RC drill planning for Yellow Mountain with the aim of testing these targets pending final heritage and NSW regulatory approvals. Additionally, Overflow drill program planning is underway to test regional targets along strike from existing resource lodes.
The company remains well-funded for ongoing exploration, with $3.05 million at the end of the June 2024 Quarter.
The identification of high-priority exploration targets at both Overflow and Yellow Mountain Prospects is a positive development for Alchemy Resources. The potential extensions of mineralised structures could significantly enhance the company's resource base. This news is likely to boost investor confidence and positively impact the company's stock price.
Investor Reaction:
Analysts are likely to react positively to the announcement, given the high-grade results and the potential for significant resource expansion. The confirmation of high-priority targets and the company's strong funding position may lead to increased investor interest.
Conclusion:
Investors should keep an eye on Alchemy Resources' upcoming drill programs and regulatory approvals. The company's strategic focus on expanding its resource base at the Lachlan Project could offer substantial growth opportunities. Stay informed on further developments and consider the potential long-term benefits for your investment portfolio.