Located in the gold and base metal-rich Gascoyne region of Western Australia

Base Metals Exploration (Alchemy 20%)

Leading Australian base metal producer Sandfire Resources NL is actively exploring the base metal prospective areas of the Sandfire Bryah Basin Joint Venture area (red outlines in Figure 1). Sandfire spent approximately $8.9M (including ~$2.9M spent by previous JV partner IGO) to earn a 70-80% interest. Alchemy is now free-carried on further exploration to completion of a Pre-Feasibility Study, and then carried on an interest-free deferred basis for a further $5M of Definitive Feasibility Study expenditure with the deferred amount to be repaid in full from 50% of Alchemy’s share of profits earned through production.

The Sandfire JV area contains more than 60km of strike extent of the Narracoota – Karalundi volcano-sedimentary sequence, host to Sandfire Resources’ DeGrussa copper-gold deposit and the high-grade Monty copper-gold resource (Fig. 1), and prospective for discovery of VMS-style copper-gold deposits. Sandfire has extensive local VMS exploration and discovery experience and is applying its state-of-the-art geophysical tools and renowned in-house geological team to comprehensively evaluate the prospective Narracoota– Karalundi stratigraphy on the JV tenements.

Subsequent to earning their JV interest, Sandfire completed an extensive aircore and follow-up RC program comprised of over 1,700 holes and more than 130,000 of drilling (Figure 2). Significant intercepts to date include:

Gold Exploration (Superior Gold earning up to 80%)

Exploration of Alchemy’s whole and part tenements that cover the gold prospective part of the Bryah Basin Project (Fig. 1) continues under a Joint Venture arrangement with Billabong Gold Pty Ltd a wholly owned subsidiary of Superior Gold Inc. (TSX-V: SGI) (“Superior Gold JV”). Superior has recently earned a 70% interest in Jackson Minerals tenements and an 80% interest in Alchemy tenements.

Alchemy’s interest is carried on an interest-free deferred basis to production, with Alchemy to repay the deferred amount at the rate of 50% of its share of free cash flow from production following commencement of mining.

The Superior Gold JV currently has a JORC Code 2012 compliant inferred resource of 114,000 oz @ 1.6g/t Au) at the Wilgeena Prospect (re-named Hermes South). The mineralisation is open at depth and further drilling has excellent potential to expand the area of gold mineralisation and add to the known resource. Superior plan to commence mining Hermes South during the first half of 2021.

Alchemy also retains a 1% NSR on 20,000oz beyond 70,000oz of gold production from Hermes where production is currently at ~50,800 oz.

Wilgeena / Hermes South Gold Deposit

At Wilgeena (Hermes South), five stacked mineralised zones have been defined by drilling to date. The zones strike approximately east-west, dip to the south at about 45 degrees, and plunge steeply to the east (Fig. 3).

The mineralisation is open at depth at Wilgeena and further drilling has excellent potential to add to the known resource and expand the area of gold mineralisation outside of the Indicated Resource.

Metallurgical test-work undertaken on oxide core material from Wilgeena, obtained from the diamond drilling program in 2010, indicates that the ore is amenable to treatment in a conventional crush, grind and CIL plant with good recoveries across all size fractions. A high proportion of gold is contained in the coarse fraction, and the test-work indicates that a large percentage (40-60%) of the free gold at Wilgeena could be recovered by gravity concentration. No technical issues have been identified that would result in a poor recovery or extenuating cost issues.