Alchemy Resources (ASX:ALY) is looking to move forward with drilling at the Overflow deposit within its 80% owned Lachlan Project in New South Wales after delivering a maiden JORC 2012 Mineral Resource Estimate (MRE).
The $12.95 million market capitalisation company today (20 October 2023) reports a maiden JORC 2012 MRE for Overflow stands at 8.189 million tonnes (Mt) @ 1.30 grams per tonne (g/t) gold equivalent (AuEq) for 342,000 ounces AuEq from surface using an inferred 0.7g/t AuEq cut-off.
Alchemy reports there is substantial potential to expand the current JORC MRE through additional drilling, as the deposit remains open along strike and at depth. Alchemy’s Overflow tenements cover prospective structures and host rocks which extend about 30km to the north and 40km to the south of the MRE and remain poorly tested by modern exploration methods.
Structural modelling is continuing to help understand the structural controls on the ‘high-grade’ shoots and structural logging of historic drill core has been completed. Further work is planned to assess the geological interpretation fully, the company says.
Fieldwork is lined up to assess 2 untested regional targets between the Overflow Shear and an East-West structure, as well as the Overflow Splay.
Mineralisation is reported to remain open along strike and at depth, demonstrating ‘substantial’ potential to expand the MRE.
This expansion potential is supported by numerous targets, including the ‘high-grade’ Yellow Mountain prospect located 20km to the south, which have little to no modern exploration.
The MRE was prepared and verified by Perth-based geological consultancy Auranmore Consulting using a methodology best suited for the mineralisation style at Overflow.
Today’s maiden MRE is a culmination of more than 12 months work by Alchemy including a review, verification and interpretation of historical data; validation of datasets; integration of historical datasets which had previously never been digitised; and, development of a new geological model.
Alchemy Resources Chief Executive Officer (CEO) James Wilson says this MRE is the starting point for future growth at Overflow.
“The maiden Mineral Resource Estimate of 342,300 gold equivalent (AuEq) ounces of gold at Overflow establishes a solid base for growth in the centre of our 80% owned Lachlan Projects.
Importantly this is a high quality, independently conducted resource estimate which remains open at depth and along strike. The current resource footprint covers only a small portion of the prospective stratigraphy and sits near a number of existing operations. We believe there is a lot of potential for future growth, both along strike and at depth.
“Moving forward, our strategy is to conduct exploration to expand our resource inventory, commencing at Overflow North which has seen almost no modern exploration”
Moving forward, our strategy is to conduct exploration to expand our resource inventory, commencing at Overflow North which has seen almost no modern exploration. We are also planning work to target the depth and down-plunge extensions of the existing resource. The area has a lot of potential for high-grade mineralisation close to surface with many targets having not been followed up in nearly 20 years.”
Alchemy Resources is a gold and base metals explorer focused on the discovery and development of resources within Australia.
The company’s majority-owned Lachlan Project is located within the ‘metal-rich’ Cobar Basin and Central Lachlan Fold Belt in New South Wales, with its Overflow deposit covering ‘prospective’ structures and host rocks which extend about 30km to the north and 40km to the south of the MRE.
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