Alchemy Resources (ASX:ALY) will undertake heritage surveys at the Taupo North prospect in November this year in conjunction with project-wide soil geochemistry at its Lake Rebecca Project in Western Australia.
The $11.78 million market capitalisation company says heritage surveys will occur at the Taupo North prospect, where soil sampling demonstrates a ‘broad’ zone of anomalism across a 3km wide area, ahead of a targeted lithium drilling program scheduled to begin shortly after.
This work follows the recent mapping of lithium targets at its Karonie Project and a project-wide lithium geochemical review by an external lithium consultant at Karonie, Roe Hills, and Lake Rebecca.
Further structural mapping will be undertaken to determine where the other large north-northeast structures intersect the quartz dolerite. Samples have been submitted for multi-element analysis to geochemically classify the internal units within the dolerite and to find the most beneficial gold host unit.
Mapping to date at Karonie has identified additional lithium-caesium-tantalum (LCT) pegmatite outcrops at the Mesquite prospect, which contain coarse lepidolite crystals.
Alchemy says alongside the coarse lithium crystals observed in pegmatite outcrops at Mesquite, rock chips returned grades of up to 4,500 parts per million (ppm) lithium in sample PN004.
The company notes the outcrops trend to the northeast, versus the interpreted north-south orientation of the Hickory prospect, and have been mapped over 1,200m in strike length towards the Pecan prospect.
Alchemy reveals results from the lithium geochemistry review highlight numerous targets across the Karonie, Roe Hills, and Lake Rebecca projects.
The company expects to utilise these results to form the basis of exploration planning over the next year at Karonie and Lake Rebecca.
As of 10:25am AEDT, Alchemy’s share price has increased by 10% to $0.011.
Alchemy Resources Chief Executive Officer (CEO) James Wilson says both Karonie and Lake Rebecca are opening up as a new ‘fertile’ system potentially prospective for lithium mineralisation.
“This is a very exciting development, with a big pegmatite system that we can now confirm has lithium minerals outcropping. Our RC drilling previously intercepted spodumene at Hickory, and now we have exposures of lepidolite at Mesquite, which sits 2,500m to the north, with only a handful of holes located between the two target areas within our 100% owned tenure.
In addition, the recent geochemical review has highlighted that we have a fertile system over the whole Karonie and Lake Rebecca tenure which has almost no lithium-focused exploration. We have now prioritised our programs to follow up on these targets with work already underway.”
“We have now prioritised our programs to follow up on these targets with work already underway”
Alchemy Resources is a gold and base metals explorer focused on the discovery and development of resources within Australia.
The company’s Karonie project is located about 90km east of the township of Kalgoorlie, while its Lake Rebecca Project sits about 10km to the southeast of Northern Star Resources’ (ASX:NST) Carosue Dam gold deposit.
Both projects are wholly owned by Alchemy.
Alchemy Resources had $5 million cash and cash equivalents at hand as of 30 June 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Alchemy Resources
