Alchemy Resources (ASX:ALY) is now mapping out its upcoming work program for the Yellow Mountain Prospect after securing a land access agreement over its Lachlan projects in New South Wales.
The company executed a land access agreement in April with the Ngemba, Ngiyampaa, Wangaaypuwan and Wayilwan People (NNWW), which have native title claim over the Yellow Mountain, Overflow and West Lynn projects.
The agreement required formal ministerial approval via a section 31 deed, which has now been granted.
CEO James Wilson says the approval is a watershed moment for the company, enabling access to high-grade copper targets at Yellow Mountain which have not seen any modern exploration drilling since 1986.
“Historic sampling up to 7% copper in grab samples around the mine area and copper mineralisation from surface in previous drilling presents a compelling priority target for follow-up,” he says.
“This is a terrific opportunity for further discoveries in the region.”
The Yellow Mountain Mine was worked from the mid-1800s, and while Alchemy says accurate production records do not exist for the mine, it reportedly produced 2.74 tonnes of lead, 360kg of copper and 6.2kg of silver from an open pit.
The Yellow Mountain Prospect was last drilled in 1986, with most of the historic drilling shallow and many of the drill holes not assayed for gold.
In early 2012, Triako Resources collected 22 rock chip samples from the area to evaluate what had previously been a base metals target.
Five samples returned gold assays of over 1 gram per tonne (g/t) gold with maximum values of 5.5g/t gold, 267g/t silver, 24% lead and 11% zinc.
Four of those returned silver assays of over 100g/t, similar to the mineralisation at Alchemy’s Overflow Project, located 20km to the north.
Meanwhile, historic drilling returned broad zones of copper and gold mineralisation including 24.4m @ 1.12% copper, 1.19% lead and 1.02% zinc from surface and 16.5m @ 1.08g/t gold, 0.48% copper, 52g/t silver, 2.04% lead and 3.48% Zn from 198m.
Structural mapping and sampling to further define drill targets will begin immediately, ahead of a maiden drill program.
Alchemy has also submitted heritage survey requests for the Yellow Mountain drill program.
The company, which has a market capitalisation of $8.3 million, had $3 million cash on hand at the end of the June 2024 quarter.
Write to Angela East at Mining.com.au
Images: Alchemy Resources
