In May 2016 Alchemy entered into a Farm-in and Joint Venture Agreement to earn an 80% interest in six Cobar Basin / Lachlan Fold Belt exploration licences covering 674km2 in New South Wales. The licences are in well-endowed gold and base metal districts with significant upside for gold and copper mineralisation. In March 2018, Alchemy signed an Option Agreement with Heron Resources Limited (ASX: HRR) to include an additional 381km2 of Ni-Co and Cu-Au exploration licences into the earn-in agreement (refer to Alchemy Resources ASX release dated 14th March 2018). Alchemy intends to convert the existing West Lynn resource to a JORC 2012 compliant status, and drill test high priority gold and base metal targets including the Overflow Prospect in the Cobar Super-basin. Alchemy can now earn an 80% interest in all eight NSW licences by spending $1.5M over the remaining 3 year period.
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 along strike to the south of the Breaker Resources NL (ASX: BRB) Bombora deposit (Indicated and Inferred resource of 11.8Mt @ 1.6g/t Au for 624,000oz.) 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 560,000oz @ 2.34g/t Au). Drill testing of various high-grade gold targets at the Project is planned.
Alchemy 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, Independence Group NL (ASX: IGO) 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. Superior Gold are currently drilling at the Wilgeena (Hermes South) deposit in order to confirm potential for the resource to become a second open pit operation and mill feed for the Plutonic Gold Mine.