Alloy Resources Limited (ASX: AYR) has announced an encouraging update on the exploration drilling activities at the Horse Well Gold Project Joint Venture in WA.
The company reported that the RC drilling at the Palomino area of the the Horse Well project has confirmed strong mineralisation. Significant intercepts include 14 m @ 5.22 g/t Au from 22 mdh; and 18 m @ 5.76 g/t Au from 28 mdh.
AYR said that the Bronco RC drilling also yielded encouraging results. Highlights include 11 m @ 2.06 g/t Au from 40 mdh; and 16 m @ 1.80 g/t Au from 102 mdh.
The company said that the data would be utilised for the update of geological and Resource models. AYR said that the Warmblood RC drill results are yet to be received.
Horse Well project
The Horse Well Gold Project is located in the Warburton Mineral Field of Western Australia and is approximately 85 kilometres northeast of the town of Wiluna. The project is a JV, with Alloy owning 60% and Silver Lake Resources Limited owning the remaining 40%.
Important prospects include Palomino, Filly SW, Filly, Bronco, Warmblood, Dusk til Dawn, and Crack of Dawn. The gold resources at Horse Well currently stand at 5,129,400 tonnes @ 1.5 g/t for 237,800 ounces.
RC drill program at Horse Well
The company had recently completed a drill program in November at Horse Well. The aim of the program was to test concepts for extensions and orientations of gold mineralisation within known Mineral Resources and advanced mineralized areas.
At the Palomino and Bronco Prospects, a total of 25 holes for 2,967 metres were drilled. A further six holes were drilled at the Warmblood Prospect.
Drilling at Palomino
The company reported that a total of nine RC holes for 1,221 metres and 779 samples were drilled within the mineralised trend.
At Palomino the purpose was two-fold, firstly to confirm the orientation of mineralisation and secondly to test for the extent of higher-grade shoots at depth.
Drilling at Bronco
The company reported that a total of 15 RC holes, were drilled for 1,746 metres and 997 samples at the Bronco prospect.
The drilling was testing potential high grade mineralised structures that were interpreted to be sub-parallel to historic drilling.
The drill results have now been reported for the Palomino and Bronco Prospects, while full results are still pending for Warmblood Prospect.
High-grade drill results
The company has now reported shallow, thick, and high-grade gold intercepts from Horse Well project.
Significant intersections at Palomino include 14 m @ 5.22 g/t Au from 22 mdh (hole AHWR094); 18 m @ 5.76 g/t Au from 28 mdh (hole AHWR096); 8 m @ 6.22 g/t Au from 72 mdh (hole AHWR097); and 11 m @ 6.62 g/t Au from 81 mdh (hole AHWR095).
Highlights from Bronco prospect include 11 m @ 2.06 g/t Au from 40 mdh (hole AHWR077); 16 m @ 1.80 g/t Au from 102 mdh (hole AHWR078); 1 m @ 28.60 g/t Au from 60 mdh (hole AHWR089); and 1 m @ 9. 91 g/t Au from 60 mdh (hole AHWR077).
Updates and next steps
The company noted that there are numerous significant assays from 4 metre composite samples. AYR said that the individual 1 metre samples are stored at the project and will be collected and submitted for analysis in January.
Alloy resources reported that upon receiving these final assays, new geological models will be interpreted and Mineral Resource updates completed.
Extra one metre samples for metallurgy were also collected from interpreted mineralised zones during drilling.
The company said that the mineralised areas will be reviewed and composite metallurgical samples defined before submission for basic gold leaching and gravity recovery testwork.
AYR said that the results suggest that the mineralisation is open along strike and at depth at the Warmblood‐Fill SW area. The company reported that RC and air‐core drilling will be conducted based on the assessed economic value of each target.
Alloy Resources’ Executive Chairman Mr. Andy Viner said: “The results at Palomino in particular, confirm that the Horse Well JV area has potential for high grade gold mineralisation which is very close to surface.
These results build on the data that will be used to advance our Mineral Resources towards Indicated status and then used for studies into economic development”.