Alchemy Resources (ASX:ALY) has begun a diamond drill program at the Challenger prospect within its wholly owned Karonie Gold and Lithium Project in Western Australia.
The $12.95 million market capitalisation company says drilling will include 2 diamond core holes at Challenger, which was targeted following an assessment of historic drilling and mapping in 2021.
Alchemy notes the prospect is situated along strike from the French Kiss open pit to the northwest, which is owned and operated by Silver Lake Resources (ASX:SLR).
Historic drilling at the prospect has also returned anomalous intercepts up to 16m @ 1 gram per tonne (g/t) gold from 112m.
Alchemy reports drilling is being undertaken in conjunction with Taupo North Lithium and rare earths soil sampling programs, which are due for completion shortly.
Taupo North heritage survey access requests are underway.
Preparations are also underway for the start of a reverse circulation (RC) drilling program at its Western Brown prospect.
Alchemy announces it is also nearing the completion of a Mineral Resource Estimate (MRE) for its Overflow Project in New South Wales.
Addressing the start of drilling, Alchemy Resources Chief Executive Officer James Wilson says: “We are excited to be back out at Karonie testing our gold targets at Challenger where there has been no follow-up drilling since 2012.
“We are excited to be back out at Karonie testing our gold targets at Challenger where there has been no follow-up drilling since 2012“
At the same time, preparations are underway for completing lithium focussed soil sampling at Taupo North and the next program at Western Brown adding to a strong pipeline of lithium and gold project news over the next quarter.”
Alchemy Resources is an ASX-listed explorer focused on growth through the discovery and development of gold, base metal, and battery metals in Australia.
The company also has a ‘significant’ land package in the Carosue Dam – Karonie greenstone belt within the Eastern Goldfields region in Western Australia.
The Karonie project is located about 90km east of the township of Kalgoorlie and is situated south of the Bombora deposit.
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