The Karonie Project, located 100km east of Kalgoorlie, comprises 8 applications and granted exploration licences covering over 670km2 of highly prospective Archaean greenstones in the Eastern Goldfields in Western Australia (Fig. 1). Karonie is strategically located close to existing processing plants, and given the already substantial gold endowment in the area (>370,000 oz. gold), Alchemy is focusing its near-term exploration efforts towards the discovery of additional high-grade gold mineralisation.
The Project surrounds Silver Lake Resources’ (ASX: SLR) Harry’s Hill deposit (Fig. 9) with a Probable Reserve of 1.05Mt at 2.2g/t gold for 75,000oz. gold (ref. Silver Lake Resources ASX announcement dated 26 August 2016). The Karonie Project is located between regional-scale Keith-Kilkenny and Claypan fault zones directly along strike from Breaker Resources’ (ASX: BRB) Lake Roe Project (Fig. 1) where RC drilling over a 4.4km strike at Bombora-Crescent continues to return high-grade gold assays including 39m @ 3.22g/t Au (ref. Breaker Resources ASX Announcement dated 19 December 2016).
Figure 1: Karonie Project – Alchemy tenements and prospects over simplified bedrock geology, major faults and aeromagnetic image.
Historic shallow RC, RAB and aircore drilling has outlined the Esplanade/Esplanade South, Batavia, Challenger and Admiral gold trends in the southern half of the Karonie Project. Follow-up RC drilling is planned for these areas targeting high-grade historic gold intercepts including 8m at 3.37g/t Au from 38m, 9m at 3.01g/t Au from 61m and 5m at 2.86g/t Au from 101m within the 4km long Esplanade trend, and 8m at 2.11g/t Au from 12m, 3m at 14.57g/t Au from 121m, and 1m at 24.81g/t Au from 70m at the Batavia Prospect (Fig. 2) (ref. Alchemy Resources ASX announcement dated 28 October 2016).
Figure 2: Karonie Project –Esplanade, Batavia and Challenger gold prospects – Maximum downhole Au values from historic drilling over Aeromagnetic image.
Follow-up RC drilling is also required at the Taupo Prospect (Fig. 1), about 2km north of the Karonie mine, where shallow broad-spaced historic drilling returned gold intercepts including 6m at 1.94g/t Au from 74m to EOH, 10m at 2.55g/t Au from 30m and 22m at 1.06g/t Au from 42m. Gold mineralisation remains open to the north and south of Taupo.
The KZ5 Prospect (Fig. 1) has gold and base metal anomalism, and untested IP and EM anomalies over a strike extent of 1.2km. Anomalous historic gold and zinc intercepts, including 20m at 1.58 g/t Au from 190m and 14m at 0.44% Zn (from 202m) and 12m at 1.37 g/t Au, 0.71% Zn from 42m also require drill testing (ref. Alchemy Resources ASX announcement dated 28 October 2016).