Alchemy Resources Limited (ASX:ALY) is an Australian gold, base metal, and nickel-cobalt exploration company focused on growth through the development of high quality exploration projects within Australia.
Alchemy has built two significant, 100% owned exploration licence packages in the Kurnalpi Terrane in the Eastern Goldfields region ~90km east of Kalgoorlie, Western Australia. The Karonie Project tenements surround Silver Lake Resources Ltd’s (ASX:SLR) Karonie/Harry’s Hill and French Kiss deposits (0.6Moz @ 2.1g/t Au) and cover 36km of the under-explored, gold endowed Claypan Shear Zone commencing just 12km along strike to the south of Breaker Resources NL’s (ASX:BRB) Bombora deposit (1.0Moz @ 1.3g/t Au). The Lake Rebecca Project is located ~10km to the southeast of the Saracen Mineral Holdings Limited (ASX: SAR) 5.4Moz Carosue Dam gold deposit, and immediately west of the Apollo Consolidated Limited (ASX: AOP) 1Moz Rebecca, Duchess and Duke deposits. The Projects are located in one of Australia’s premier gold provinces and have the potential for the discovery of significant gold resources.
Alchemy has earned a 51% interest in the Cobar Basin / Lachlan projects in New South Wales, and as per the terms of the Farm-in and Joint Venture Agreement with Heron Resources Limited (ASX:HRR), can earn an 80% interest by spending an additional $0.3M 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. Alchemy intends to progress several advanced exploration targets in NSW (including the Overflow and the Yellow Mountain Gold-Base Metal Prospects) via extensional drilling in order to define sufficient resources to support profitable near-term mine development.
The NSW portfolio also contains the West Lynn Project which contains an Inferred Resource of 21.3Mt @ 0.84% Ni, 0.05% Co, 2.4% Al, 20.0% Fe, 12.9% MgO) and an Inferred Resource 6.6Mt @ 20.8% Al2O3, 2.8% Fe2O3, 1.15% TiO2) at the Summervale Prospect. Positive metallurgical results for the Ni-Co mineralisation and for the alumina ore has prompted Alchemy to consider a scoping study on the Project as soon as DNi process capital expenditure estimates can be confirmed.
Alchemy retains a 20% interest in the Bryah Basin Project in the 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 JV includes an inferred resource of 2.2Mt @ 1.6g/t for 114,000 oz Au at the Hermes South deposit where Superior are expecting to commence open pit mining in the first half of 2021, and Alchemy will receive a 1% royalty on 20,000 oz of gold from the Hermes mine (Superior Gold) beyond 70,000 oz of gold production.