Alchemy has built a 829km2, 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 along strike to the south of the Breaker Resources NL (ASX: BRB) Bombora deposit (Indicated and Inferred resource of 24.6Mt @ 1.4g/t Au for 1.1Moz.) and along strike to the north and south of the Silver Lake Resources Ltd (ASX: SLR) Karonie/Harry’s Hill and French Kiss deposits (reserves/resources of over 590,000oz @ 2.0g/t Au). Drill testing of various high-grade gold targets at the Project is planned.
Alchemy also maintains its interest in the Bryah Basin Project in the emerging gold and base metal-rich Gascoyne region of Western Australia (Fig. 1) where farm-in and joint venture partners, Sandfire Resources NL (ASX: SFR) and Billabong Gold Pty Ltd, a wholly-owned subsidiary of Superior Gold Inc. (TSX-V SGI), are continuing to advance base metal and gold exploration, respectively. Sandfire have recently commenced a very large drilling campaign across the VMS prospective rock units ~30km along strike of their De Grussa Cu-Au mine. Superior Gold have recently upgraded the Wilgeena (Hermes South) JORC 2012 compliant indicated and inferred resource to 2.2Mt @ 1.6g/t Au for 114Koz. and have commenced studies to evaluate the potential for the resource to become a second open pit operation and mill feed for the Plutonic Gold Mine.
In May 2016 Alchemy entered into a Farm-in and Joint Venture Agreement with Heron Resources Limited (ASX: HRR) to earn an 80% interest in eight Cobar Basin / Lachlan Fold Belt exploration licences covering 1054km2 in New South Wales. The licences are in well-endowed gold and base metal districts with significant upside for gold mineralisation especially at the Overflow Prospect where additional drilling has been planned.
Alchemy recently announced a maiden inferred JORC 2012 compliant resource of 21.3Mt @ 0.84% Ni, 0.05% Co at West Lynn, and also a maiden inferred JORC 2012 compliant resource of 6.6Mt @ 20.8% Al2O3 (alumina) at Summervale. Alchemy have earned a 51% interest in all eight licences and can earn an additional 29% interest by spending $0.5M prior to May 2021.