Alchemy Resources (ASX:ALY) CEO James Wilson says site visits are being conducted this week to assess the iron ore potential identified at its Bryah Basin portfolio in Western Australia.
Speaking to Mining.com.au following yesterday’s (30 April 2024) release of its latest quarterly report, Wilson says Alchemy also plans to complete the integration of the Bryah database, while reviewing the Sandfire Resources (ASX:SFR) JV database to generate future targets.
“In our Bryah assets in Western Australia, iron ore potential has been identified at the Valley Bore prospect, including two parallel ridges with massive hematite over 2km-long, 100m wide, and exposed 20m in height,” the CEO tells this news service.
“And same in the Bryah, our joint venture partner Catalyst Metals (ASX:CYL) has been conducting site visits to the Hermes and Hermes South gold deposits, which Alchemy has a 20% interest in. We’re hopeful that development will be pushed forward on these assets against a record Aussie dollar gold price.”
Exploration of Alchemy’s tenements that cover the gold prospective part of the Bryah Basin Project continue under a farm-in and JV arrangement with privately held Billabong Gold, now a subsidiary of Catalyst Metals.
Billabong now has an interest in 18 tenements in the Three Rivers Project, five of these being joint tenements where both Billabong and Sandfire (now Alchemy) have an interest in the tenements. Under the terms of the Billabong Gold JV, Alchemy’s interest is carried on an interest-free deferred basis to production, with Alchemy to repay the deferred amount from 50% of its share of free cash flow from production following the commencement of mining.
Field work during the quarter was limited to a reconnaissance geological visit to the Hermes and Hermes South mining areas.
Meanwhile, Wilson notes other highlights in the quarterly report include the Karonie Project in Western Australia, where assays received for RC drilling at the Mesquite prospect returned anomalous lithium results, “showing that the system does indeed remain fertile at depth”.
At Roe Hills and Manhattan, he says the two prospects which sit to the east and to the west of the Manor deposit, soil sampling was targeting gold and lithium, and it’s been completed with around 900 samples submitted to the lab with results pending.
“In New South Wales, land access agreements are well advanced for Yellow Mountain Crown land areas. Access agreements have been submitted for approval with the New South Wales government, with an expectation of result sometime this quarter,” Wilson says.
“Planning is underway for field exploration programs and we aim to target the historic high-grade copper zones at Yellow Mountain, as soon as access is granted. These areas returned mullock samples up to 7% copper assays back in 2000, so we know this is a significant target to follow up on there.”
Write to Adam Orlando at Mining.com.au
Images: Alchemy
