Alchemy Resources

Alchemy Resources delivers maiden 111,100oz MRE at Karonie Gold Project

Alchemy Resources Limited (ASX: ALY) has released its maiden JORC 2012-compliant Mineral Resource Estimate from its 100%-owned Karonie Gold Project near Kalgoorlie, Western Australia.

The inferred 111,100oz @ 1.2g/t Au (0.8g/t Au cut-off) resource was delivered following a targeted RC drilling program that was carried out in May 2021, and covers the the Taupo, KZ5 and Parmelia deposits.

Karonie Gold Project MRE

Potential for MRE expansion

Alchemy reports that the resource footprint covers only 2% of strike extent at the project, with known deposits open at strike and at depth, and a series of unassessed, advanced targets providing potential to expand the MRE via further drilling.

The Karonie landholdings cover prospective structures stretching approximately 30km north and 55km south of the current resource, and are considered to be under-tested.

Everybody needs good neighbours

The 1,200km² Karonie Project is is situated approximately 90km east of Kalgoorlie, surrounding Silver Lake Resources’ Aldiss Mining Centre (0.6Moz @ 2.1g/t Au) which is an operating open-pit mine, and along strike from Breaker Resources’ Bombora Deposit which hosts a reserve of 1.0Moz Au @ 1.3g/t Au.

The project includes four applications and ten granted exploration licenses across the ‘highly prospective’ Archaean greenstones in the Eastern Goldfields region.

Upcoming exploration at Karonie

Alchemy has stated that it plans to begin resource expansion via a phase 2 drilling program across the southern areas at Karonie, following reviews of historical assays that have revealed potential for shallow, high grades, and with little work over the previous 20 years.

Following this, phase 3 drilling is expected to move to the far north of the project at the Manhattan prospect, approximately 15km from the Bombora deposit.

“this is a high quality, independently conducted resource estimate which is largely contained within the top 150m and remains open at depth and along strike”

Management comments

Alchemy Resources Chief Executive Officer James Wilson said: “The maiden JORC 2012 Mineral Resource Estimate of 111,100 ounces of gold at Karonie establishes a solid base for growth in the centre of our 100% owned Karonie Gold Project. Importantly this is a high quality, independently conducted resource estimate which is largely contained within the top 150m and remains open at depth and along strike at all three deposits. The current resource footprint covers less than 2km combined of the +85km strike length of the Karonie tenement package, which has active mining operations along the length of the same highly prospective structures. That leaves a lot of real estate along strike and at depth for future growth.”

Images: Alchemy Resources Limited
Written By Tristan Gray
Originally from Canada, Tris trained as a journalist but early in her career moved into marketing and advertising. Tris now spends her days managing the systems and processes while overseeing all company operations.