Alchemy Resources (ASX:ALY) has acquired the remaining 50% interest in the iron ore rights from joint venture partner Carey Mining, becoming the sole owner of the Bryah Project.
Alchemy paid $75,000 cash, as well as a gradational royalty of the iron ore sold freight on board from the project to its joint venture partner.
Iron ore prices under US$100 ($153.99) per tonne will offer a royalty of $0.80/t, greater than US$125/t will offer a royalty of $1.22/t, while ore priced between the two markets will offer a royalty of $1/t.
The Bryah Project has approved programs of work, along with heritage surveys completed to plan logistics of a maiden drill program.
CEO James Wilson says the company is excited to bring its ownership of the iron ore on Bryah tenements to 100%.
“The project continues to deliver promising results, with high-grade iron ore rock-chip samples returning assays above 65% iron–strongly supporting the direct shipping ore (DSO) potential on a granted mining lease at Valley Bore prospect,” Wilson says.
The company previously conducted reconnaissance mapping and sampling at the Valley Bore prospect, where 20 rock-chip samples were collected from the banded iron formation.
Alchemy observed hematite and goethite rich units of banded iron formation at the Northern Ridge target, between 5m and 15m in thickness to extend along strike to the southwest. Historical work indicates grades up to 61.91% iron from the hematite outcrop.
The Southern Ridge contains a hematite unit running along strike for more than 800m, between 10m and 100m in width. Rock-chip sampling returned results up to 65.3% iron.
Sampling from the Old Highway target observes “high-grade” iron ore enrichment up to 64.09%, related to the hematite within a fold hinge east.
“The opportunity is particularly compelling given our strategic location 12km from the Great Northern Highway and surrounded by major players in the sector,” Wilson says.
Comprising 527km2 landholding, the Bryah Basin Project is located along strike west of Sandfire Resources’ (ASX:SFR) DeGrussa and Monty deposits. Alchemy previously retained a 20% interest in base metal and gold projects across this area with Sandfire, before acquiring its remaining interest in January last year, as reported by Mining.com.au.
The Hermes deposit within this project retains a net smelter royalty of 1% over 20,000 ounces of gold beyond 70,000 ounces of gold production, with production currently marked at 50,800 ounces.
Alchemy is an Australian explorer focused on the development of gold, base metal, and nickel-cobalt projects across New South Wales and Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Alchemy Resources
