Alchemy Resources Limited (ASX: ALY) is an Australian gold, base metal, and nickel-cobalt exploration company focused on growth through the discovery and development of high quality exploration projects within Australia.
Alchemy has recently earned a 51% interest in the Cobar Basin / Lachlan projects in New South Wales, including the West Lynn Nickel-Cobalt Project, and as per the terms of the Farm-in and Joint Venture Agreement with Heron Resources Limited (ASX: HRR), can earn up to an 80% interest by a further $0.5M expenditure prior to 30 May 2021. The projects are located in well-endowed gold, base metal and nickel-cobalt districts with significant upside for high grade and bulk tonnage mineralisation. A JORC Code 2012 Edition Inferred Resource for West Lynn (21.3Mt @ 0.84% Ni, 0.05% Co, 2.4% Al, 20.0% Fe, 12.9% MgO) was released Q1 2019. Positive metallurgical results for Ni-Co-Al has prompted Alchemy to undertake a scoping study in the near future. Alchemy also intends to progress other advanced exploration targets in NSW via extensional drilling in order to define sufficient resources to support profitable near-term mine development.
Alchemy has also built a significant, 100% owned land package in the Karonie greenstone belt in the Eastern Goldfields region in Western Australia. The Karonie Project is in one of Australia’s premier gold provinces with significant potential to discover additional gold resources.
Alchemy retains a 100% and 20% 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, Sandfire Resources NL (ASX: SFR) and Superior Gold Inc. (TSX-V: SGI) are continuing to advance base metal and gold exploration, respectively. The Superior Gold Inc. JV includes a JORC Code 2012 Edition Inferred Resource of 1.37Mt @ 2.0 g/t for 87,000oz Au (0.6g/t Au lower cut-off) at the Hermes South deposit, and Alchemy is expecting a 1% royalty on 20,000oz of gold from the Hermes mine off Superior Gold to commence in Q4 2019.