Alchemy Resources (ASX:ALY) is planning a drilling program at its Bryah tenement package in Western Australia, after the Valley Bore prospect was confirmed as “highly prospective” for iron ore.
Mapping and sampling by Alchemy in 2008 and 2009 discovered high-grade hematite and banded iron outcrops over 2km in strike and up to 66.3% iron. However, more recent sampling work returned up to 65.9%, including calcined iron grades up to 67.4%.
Alchemy believes the combination of outcropping hematite mineralisation and a granted mining lease near major roads and infrastructure highlights the near-term development potential of the project.
Once the drilling program has been finalised, the company will complete area clearance for heritage site avoidance and logistics planning.
Upon completion, a follow-up mapping and sampling program will be carried out to delineate south-western extensions at Valley Bore and begin work at the Old Highway target.
CEO James Wilson says the company has also identified a second iron ore occurrence at the Old Highway target, which has the potential to add further scale.
“With its proximity to the Great Northern Highway and its advancing mining permit status, the company believes there is a significant opportunity to rapidly advance this asset in the near term,” he says.
“It’s an exciting opportunity with our leases surrounded by majors in the sector such as Sinosteel Midwest Corporation to the south.
“Hematite outcrops are evident over a 900m strike extent at the Southern Ridge target, and we have high-grade rock chip assays from new areas 3km away, so there’s a lot of potential to grow the project.”
The Valley Bore prospect is a 50/50 joint venture between privately held Carey Mining and Alchemy. Alchemy retains rights to 100% of the mineral rights for all minerals except iron ore through the joint venture.
Write to Aaliyah Rogan at Mining.com.au
Images: Alchemy Resources
