Alchemy Resources (ASX:ALY)
In today’s Mining Minute, Alchemy Resources (ASX:ALY) CEO James Wilson joins Mining.com.au live from the company’s Karonie project, where it has boots on the ground to assess the region’s lithium potential.
In global news, First Quantum faces a legal hurdle for a copper mine in Panama, and Euro Manganese has struck a US$100 million non-dilutive financing deal for its Chvaletice Manganese Project in the Czech Republic.
Alchemy Resources (ASX:ALY) is looking to complete a project-wide soil sampling program at its Lake Rebecca Project in Western Australia on a 400m x 400m spaced grid followed by initial pXRF Lithium Index Evaluation.
The $11.78 million market capitalisation company says the current soil geochemistry program is scheduled to be complete by the end of November 2023 before a planned drilling program at the Karonie lithium-caesium-tantalum (LCT) pegmatite in December.
Follow-up laboratory assay analysis, field reconnaissance campaigns and target identification, and infill soil sampling to advance drill targets will then follow.
Alchemy reports soil sampling follows a recent field reconnaissance and a detailed geochemical review of lithium prospectivity and has been designed to assess the potential of all project areas at Lake Rebecca.
The company notes initial pXRF sample analyses to follow once samples are returned to Perth for analysis.
The regional soil sampling represents the first exploration program being undertaken for lithium, with the majority of the tenure having only ever been explored for gold.
Previous exploration at the Middle Tank prospect has identified lithium in soils anomalism with an area of interest characterised by a coincident lithium-caesium-tantalum (LCT), rubidium and rubidium/potassium ratio, along with elevated gold-related pathfinder elements.
Alchemy Resources Chief Executive Officer (CEO) James Wilson says the ongoing and future work will help the company flag targets for planned 2024 exploration.
“At the same time we are preparing to test our Karonie lithium-caesium-tantalum (LCT) pegmatite targets and hope to begin drilling in early December 2023.”
Alchemy Resources is an explorer focused on growth through the discovery and development of gold, base metal, and battery metals in Australia.
The company’s Lake Rebecca Project comprises 7 granted exploration licences and 3 applications covering a total 570km-square of Archean greenstones in the Eastern Goldfields of Western Australia. The project sits 100km east of Kalgoorlie.
As of 30 September 2023, Alchemy Resources had $4.369 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Alchemy Resources
‘All-in on copper’ company Helix Resources (ASX:HLX) reports it has no cause to question the accuracy or reliability of the West Lynn Project exploration results following a number of queries.
The company has released additional information to shareholders in relation to the West Lynn Project following some undisclosed enquiries.
As reported by Mining.com.au on 9 November 2023, Alchemy Resources (ASX:ALY) has executed an option agreement with Helix subsidiary Ionick Metals for the West Lynn tenements at Alchemy’s 80% owned Lachlan Projects in New South Wales.
On 19 February 2019, Alchemy announced that a maiden inferred Mineral Resource Estimate (MRE) had been completed for the nickel-cobalt zone of the West Lynn Project, an advanced project located 10km west of Nyngan and 40km north of Ionick’s nickel mineral rights.
As per recent announcements, Alchemy confirms the 2019 results showing West Lynn has an inferred MRE containing 21.3Mt @ 0.84% Ni, and 0.05% Co (180,000t of Ni and 11,000t of contained Co). The project also contains an additional alumina resource of 6.6Mt @ 20.8% Al203.
Today (13 November 2023), Helix reiterates that the MRE has been reported in accordance with the JORC Code (2012) and was completed by Resource Evaluation Services (RES).
The JORC Code (2012) describes a number of criteria, which must be addressed in the documentation of MREs, prior to public release of the information. These criteria provide a means of assessing whether the data inventory used in the estimate is adequate for that purpose.
Helix confirms it is relying on the reported resource prepared by Alchemy and that it has conducted a technical review of the data prior to execution of the option agreement.
The company says nothing has come to its attention that causes it to question the accuracy or reliability of Alchemy’s exploration results. The company adds that it has not independently validated the previous results and therefore is not to be regarded as reporting, adopting, or endorsing those results.
Helix did not disclose the nature of the queries it has received.
Upon exercising the option and acquiring the West Lynn asset, Ionick Metals proposes to undertake additional drilling to confirm and further expand the resource. As reported on 9 November 2023, the funds raised from Ionick’s proposed $10 million IPO will be used to complete stage one exploration work.
Helix Resources’ broader strategy includes splitting its copper-gold and nickel-cobalt mineral rights, with Ionick’s core assets including the Homeville nickel-cobalt deposit and as of last week, also the West Lynn Project.
For completeness, Helix has released a summary of its existing Homeville MRE which is also reported in accordance with the JORC Code (2012). The Homeville MRE was completed in 2018 by Optiro and is reported above a 0.7% nickel cut-off grade. The 2018 mineral resource was publicly reported by Alpha HPA (formerly Collerina Cobalt Limited) on 28 September 2018.
Metallurgical testwork undertaken in 2015 to 20171 examined atmospheric counter-current acid leaching, achieving >90% nickel and cobalt recoveries to produce nickel cathode and a cobalt-carbonate.
Write to Adam Orlando at Mining.com.au
Helix Resources (ASX:HLX) subsidiary Ionick Metals has executed an option agreement with Alchemy Resources (ASX:ALY) to acquire Alchemy’s 80% joint venture (JV) interest in the West Lynn Project in New South Wales.
Helix says the nickel laterite project holds an inferred mineral resource of 21.3 million tonnes (Mt) @ 0.84% nickel and 0.05% cobalt at a 0.06% nickel cutoff.
This means when considering Ionick’s Homeville mineral resource of 18 million tonnes (Mt) @ 0.9% nickel and 0.06% cobalt, the agreement increases Ionick’s total nickel resource inventory to nearly 40Mt containing 340,000 tonnes of nickel and 21,000 tonnes of cobalt.
The option deal comes ahead of Ionick’s proposed initial public offering (IPO).
As part of the arrangement, Alchemy will receive 6 million Ionick shares for its 80% of the mineral rights alongside up to 20 million performance rights.
Helix, which has a $9.29 million market capitalisation, says the agreement with Alchemy supports its strategy of achieving a Mineral Resource Estimate (MRE) greater than 80Mt.
Helix reports that the growth outlook for Ionick’s existing mineral resources is supported by numerous ‘high-grade’ nickel-cobalt prospects and early-stage targets outside of the existing resources.
These targets are home to results such as 24m @ 1.01% nickel (Ni) and 0.06% cobalt (Co) from the Sykes prospect; and 25m @ 0.82% Ni and 0.05% Co, including 8m @ 1.12% Ni and 0.09% Co, from the Browder prospect.
As of midday AEDT, Helix Resources shares have spiked 14.285% to $0.004.
The West Lynn Nickel-Cobalt Project covers the nickel-cobalt rights on exploration licences EL8318 and EL8631, which are currently held in the ‘Ochre Resources’ JV between Alchemy (80%) and Develop Global (ASX:DVP) (20%).
Under today’s agreement, Ionick has the option to acquire Alchemy’s 80% interest in the JV, with Develop retaining its 20% interest. The Ochre JV retains 100% ownership of all the non-nickel-cobalt minerals.
It all comes as part of Helix’s planned spin-out of Ionick into a separate listed entity. As part of this spin-out, the nickel-cobalt assets in the West Lynn region are being vended into Ionick by Alchemy, Helix, and private explorer Jodama, which holds mineral rights over the tenements.
The venders will receive a notional consideration of about $3 million to be paid via the issue of about 15 million Ionick shares. Alongside Alchemy’s 6 million shares, Helix and Jodama will receive 7.5 and 1.5 million shares, respectively.
Helix reports that a spin-out of Ionick Metals presents a ‘compelling’ opportunity to unlock the hidden value from its suite of nickel, cobalt, and platinum group metal (PGM) assets.
Helix notes an IPO is the ‘ideal’ pathway to appropriately fund and resource its development activity, with a business plan being finalised ahead of the proposed IPO. Delivery of the IPO is scheduled for the 2024 June quarter and is hoped to provide Ionick with $10 million.
Helix Chair and Ionick Director Mike Rosenstreich says the option with Alchemy completes a ‘significant local consolidation’ of nickel-cobalt assets and underpins the planned spin-out of Ionick Metals from Helix.
“A key objective for Ionick will be to define a large-scale, high-grade Mineral Resource Estimate greater than roughly 80Mt. We think this is a threshold for a ‘meaningful’ scale nickel project in terms of production output and mine life to initiate the appropriate feasibility work.
“This sizable bump in resources, plus the addition of numerous high-grade prospects, provides Ionick with strong momentum towards achieving its critical resource threshold”
This sizable bump in resources, plus the addition of numerous high-grade prospects, provides Ionick with strong momentum towards achieving its critical resource threshold.
Ionick’s development strategy, which currently emphasises consolidation and development of high nickel-grade and large-scale tonnage, highlights how alert we are to the challenges faced by other laterite projects which have become stranded in terms of interest and financing.“
Meanwhile, Alchemy Resources, which has a $12.95 million market capitalisation, notes the agreement with Ionick provides its shareholders with a potential value accretive opportunity via the spin-out of its non-core nickel-laterite and alumina assets.
Alchemy Resources Chief Executive Officer (CEO) James Wilson says: “When the opportunity arose to join with Ionick into what we consider to be a potentially significant critical metals exploration company in Australia, the rationale was compelling.
We are delighted to have reached an agreement with Ionick that may see our nickel-cobalt minerals and Alumina portfolio combined with their highly prospective tenement package located in a tier-one mining jurisdiction.
“The potential spin-out will result in the establishment of Ionick as a well-funded base metals explorer and will provide our shareholders with ongoing exposure to these expanded assets and strategy”
The potential spin-out will result in the establishment of Ionick as a well-funded base metals explorer and will provide our shareholders with ongoing exposure to these expanded assets and strategy. Additionally, the potential spin-out will allow Alchemy to focus on the ongoing development of its high-grade gold and base metals assets at Overflow and Yellow Mountain to the south.”
Helix Resources is ‘all-in’ on copper exploration and focused on making discoveries in the producing region of Cobar, New South Wales.
Alchemy Resources is focused on the discovery and development of gold, base metal, and nickel-cobalt resources within Australia.
Helix Resources had $4.2 million cash at hand as of 30 September 2023, according to its latest quarterly report.
At the same time, Alchemy Resources had $4.369 million cash and cash equivalents at hand as of 30 September 2023.
Write to Adam Drought at Mining.com.au
Images: Helix Resources
This article is a sponsored feature from Mining.com.au partner Alchemy Resources Ltd. It is not financial advice. Talk to a registered financial expert before making investment decisions.
Alchemy is a form of speculative thought that, among other aims, has tried to transform base metals such as lead or copper into silver or gold and to discover a cure for disease and a way of extending life.
According to Britannica, in 12th-century Latin Europe alchemy was the name given to an aspect of thought that corresponds to astrology. ‘Both represent attempts to discover the relationship of man to the cosmos and to exploit that relationship to his benefit. The first of these objectives may be called scientific, the second technological.’
Junior explorer Alchemy Resources (ASX:ALY) is combining a modern technological and scientific approach to its portfolio of 5 main projects covering a range of commodities including gold, lithium, base metals, nickel, and cobalt.
The $13 million market capitalisation company’s assets are all located in ‘mining-friendly’ parts of Australia and each have the potential to host ‘company-making’ deposits.
As CEO James Wilson explains to Mining.com.au, Alchemy Resources has a growth strategy focused on building quality mineral resources through innovative exploration and strategic acquisition.
In particular, Alchemy has built a significant land package in the Karonie-Carosue Dam greenstone belt in the Eastern Goldfields region in Western Australia. It’s here that an important milestone was achieved this year with the execution of heritage protection agreements over its Karonie and Lake Rebecca tenure, which was signed with representatives of the Kakarra and Nyalpa Pirniku People.
“We have a team in Western Australia, we have a team in New South Wales as well, but most of the work has been focused on Western Australia because the chances of a discovery are quite high here. We already have evolved deposits over there, but we’ve been working on land access.
Land access takes a lot longer in New South Wales than it does in Western Australia, and we actually have all our land access done. We’ve got 5 agreements over here and they’re great, everybody’s really easy to engage. New South Wales is different, it’s a lot more protracted to get it done, and we’re at that pointy end. You’ve got to be solid in how you approach heritage agreements to get the best outcome for everybody at the outset and then that will judge everything else down the track.”
Within its portfolio Alchemy has a joint venture with Develop Global (ASX:DVP) where it has earned an 80% interest in the Lachlan/Cobar Basin projects in New South Wales. Both regions are well-endowed metal provinces with significant upside for lithium, gold, silver, copper, lead, zinc, nickel, and cobalt mineralisation.
The company maintains its interest in the Bryah Basin Project in the gold and base metal-rich Gascoyne region, where farm-in and JV partners Sandfire Resources (ASX:SFR) and Billabong Gold, a subsidiary of Catalyst Metals (ASX:CYL), are continuing to advance base metal and gold exploration, respectively.
During 2023, Alchemy reviewed historic core from the Yellow Mountain and Overflow prospects at the Lachlan Project. Yellow Mountain is a promising base metal-gold target which has not been explored since 1986. Overflow has delivered a maiden Mineral Resource Estimate (MRE) of 342,300 gold equivalent ounces, which establishes a solid base for growth in the centre of the Lachlan projects.
“Moving forward, our strategy is to conduct exploration to expand our resource inventory, commencing at Overflow North which has seen almost no modern exploration. We are also planning work to target the depth and down plunge extensions of the existing resource. The area has a lot of potential for high-grade mineralisation close to surface with many targets having not been followed up in nearly 20 years.”
“The area has a lot of potential for high-grade mineralisation close to surface with many targets having not been followed up in nearly 20 years“
The CEO says while a 12th-century alchemist may have tried to transform base metals such as lead or copper into silver or gold, Alchemy Resources is transforming into a verified diversified mining company with exposure to a broad spectrum of commodities.
It’s an exciting time for the company. In early September, a diamond core drill program at the Karonie Gold and Lithium Project, located 100km east of Kalgoorlie, focused on the Challenger prospect. Challenger was targeted following assessment of historic drilling and mapping in 2021. Previous drilling returned anomalous intercepts up to 16m @ 1g/t Au from 112m.
Challenger is an advanced gold target with mineralisation hosted within a thick high-iron quartz dolerite sill, similar to the host rock mineralisation at Ramelius Resources (ASX:RMS) Bombora deposit. It sits along strike from the French Kiss open pit to the north-west operated by Silver Lake Resources (ASX:SLR). A significant Au-Bi-Mo-Te-W-Sb anomaly – considered the best pathfinder for mineralisation – has been recognised from aircore drilling.
A Karonie reverse circulation drill program at Taupo North also returned up to 0.1% Li20 with associated pathfinder elements up to 45ppm Ta205, 4,480ppm Rb, and 40ppm Sn.
These results outlined a new zone that remains open along strike with associated lithium in soils anomalism which extends for 3km to the south-east. Infill soil sampling will gather more detail over the areas to the south and the east toward Hickory to fully define the geochemical anomalism over a 4km x 3km footprint. Heritage survey requests have been submitted to clear the areas adjacent to Taupo North for future drill programs.
Wilson says these results and having exposure to battery metals are significant for a variety of reasons.
“Obviously lithium gives you the entry point with a lot of investors at the moment“
“Obviously lithium gives you the entry point with a lot of investors at the moment. I’m sure that landscape will probably change in some time, but the interesting thing with lithium is that Karonie was always gold, and it was just like most other companies in Western Australia.”
He adds that most of the lithium discovered to date has been ‘sticking out of the ground’.
“So, when you’re looking for lithium, in terms of undercover lithium deposits, no one’s found one yet. When someone does, it’s going to be the first one in the whole world. That’s no joke. If someone does, it will be the first lithium deposit in the whole world discovered that is undercover. And that’s the trick. That’s the space we’re in at the moment because everything’s covered in sand – there’s bloody bugger all outcrop. Or if there is, there’s no lithium in that bit. But where it goes undercover, we’re completely blind.
That’s what I’m trying to relay to people – we can’t just walk up and drill 20m at 1% at surface. It’s not going to happen, largely because the high degree of weathering depletes the very mobile lithium metal at surface, but what where left with is the more durable pathfinders like rubidium, tantalum, gallium and tin which we have in spades over a big footprint. The anomalism is huge and we just have to zero in on that zone of enrichment…it’s got to be there somewhere nearby.
Basically, Alchemy is trying to bring people across technically to try and understand the difficulty, or not the difficulty, but how well we are doing in discovering lithium mineralisation in a region that has had no lithium exploration.”
Alchemy’s Karonie and Lake Rebecca projects are contiguous with Global Lithium Resources’ (ASX:GL1) Manna deposit. Global Lithium has now defined a total indicated and inferred mineral resource of 54Mt @ 1.09% Li2O at its Manna and MBLP Lithium projects.
Like an alchemist, Wilson and his team are trying to understand through modern scientific and technological approaches, more about the lithium it has. The company will seek to vector in Global Lithium’s future results into its own data as work progresses.
However, this is within a new belt where the only lithium deposit is Manna, which Wilson notes was ‘found almost by accident’. He reiterates to Mining.com.au, the space is at an early and informative stage still in need of more understanding.
One aspect in particular that needs further investigation is identifying what the lithium pathfinders are, whether it’s tantalum, gallium, or some other element the company should be pursuing.
“We talk to a lot of the guys in the lithium space and we try and learn what’s learnable, but it’s different everywhere you go. Trying to explain to a smallcap investors that Karonie has always ever been explored for gold and we’ve got the right geology, the right rocks, the right chemistry, and we’ve even got lithium.
“We talk to a lot of the guys in the lithium space and we try and learn what’s learnable, but it’s different everywhere you go“
We only have a few metres of spodumene, but it’s there. And trying to bring these investors across and say, ‘look, if there’s metal there that means there’s going to be more metal somewhere else’, maybe. With the gold you get a little nugget and it’s an accumulation of the gold in the region and then you think, ‘there might be a few other nuggets around’, but there’s not going to be a 12-million-ounce gold deposit underneath these 10 nuggets because that would be found with the lithium.
It’s different, it’s crustal. So, you get a little bit of lithium, you go, ‘mate, there’s metal here, that means there’s going to be metal somewhere else’ and then we just need a trap, a right spot for it, so it’s really exciting. Nobody’s seen this stuff in 50 years of gold exploration in this area.
The fact that there’s even any metal at all here is really important. That’s what we’ve found. We’ve got to that point where we’ve found where the metal is, just got to find an accumulation of it. It might be tomorrow; it might be next week.
You wake up every day, and today might just be the day. We’ve had a few little bits and pieces like that where you walked out there and went ‘holy crap, there’s lepidolite there on surface’. We did that 10 weeks ago – it came back at 3,000ppm lithium, or 2,700ppm, and we released it.
You go, ‘oh wow look at that. There’s actually lepidolite at surface – that’s nuts’. So, you’re really excited and it’s just a function of just learning as much as you can. We’ve since discovered that the structural orientation of it is slightly different to what we thought. We drilled 2 holes and this was going this way and so we just started doing the numbers in our head and drawing pictures on the ground with a stick.
If you can find something, it’s amazing and there’s nothing better than the feeling you get when you walk out and you found something that no one else has seen before. When we found the lepidolite, albeit only 2,700ppm, but no one had ever seen that before there, so big high fives almost broke my hand. You just want to find a bit with 10,000ppm in it.”
Rock-chip assays at Karonie have indeed confirmed the presence of surface lithium mineralisation with results of 2,723ppm Li20, 167ppm Cs, 2,930ppm Rb, and 62.8ppm Ta205.
Much like alchemy is a form of speculative thought, Alchemy Resources is using this approach.
The CEO suggests that given the abundance of tantalum, this could be a pathfinder for the battery metal as it’s very durable and is residual meaning it stays around longer. The company appears to also have plenty of beryllium and rubidium within its landholding.
“We’re still trying to make heads or tails of it.”
Wilson explains that given there is only one lithium deposit within close proximity and so few lithium discoveries have been made in Western Australia (compared to gold), it could take decades before “everybody learns all that’s learnable on this”.
“Is it a hard sell? Well time will tell when it comes to learning about the lithium but for us, lithium helps fund everything and that’s been the aim – if you have a lithium focus that gets people’s interest, but we also have some really great assets.
“Well time will tell when it comes to learning about the lithium but for us, lithium helps fund everything and that’s been the aim – if you have a lithium focus that gets people’s interest, but we also have some really great assets“
I mean, in New South Wales at Yellow Mountain, we have 7% copper sitting on the surface in stockpiles and that’s part of what we’re negotiating now to get access to and that’s amazing. It hasn’t been drilled for 40 years.
It’s amazing, but we just want to get the agreement right so everybody’s happy and everybody’s aligned going forward. We want to get there – we want to go and focus on it. We’re budgeted to go in there and do a few drill programs and whatnot but we need those access agreements all bedded down first and we’re at the very pointy end of that. We’re hopeful that it will actually be quite short-term.”
With a range of projects and exposure to commodities, Alchemy has a de-risked and diversified portfolio. That means, it has a range of current and legacy shareholders each with different investment objectives. This is not unique by any stretch of the imagination but an aspect the CEO remains cognisant of in terms of its growth strategy.
As per Alchemy’s latest annual report, gold producer Northern Star Resources (ASX:NST) has a 6.63% interest in the company. To state the obvious, this significant shareholding is likely due to Alchemy’s gold assets.
However, Wilson spoke to one undisclosed investor the other day who, while their investment in Alchemy is for the precious metal, it was relayed to him they find the lithium story to be really interesting. The investor told him Alchemy should be worth multiples of its current $13 million market capitalisation, “even if the company can have half a win”.
“This investor said that that’s what they’re there for as you can’t really get most companies worth about $10 million with the portfolio we’ve got’. ‘So, if you find anything at all, you’re going to be $50 million’.”
While that is speculative thought, it appears Alchemy has all the right ingredients to achieve a re-rating down the line.
In Western Australia, work continues on the structural mapping, high resolution magnetics, and gravity surveys, soil sampling and RC drilling at the lithium targets at Cherry, Hickory, Mesquite, and Pecan and gold targets at Gilmore and KZ5.
In New South Wales, the focus is on a structural and historic drill core review of the Melrose, Yellow Mountain, and Overflow projects. As mentioned, New South Wales Land Access negotiations continue to progress access into the Yellow Mountain area for future drill programs. Heritage access agreements were completed in late 2022 over the majority of the Karonie and Lake Rebecca tenure, and multiple clearance surveys were conducted to facilitate drill access.
Meanwhile, Alchemy is waiting for permits for a lithium program and trying to figure out what the results of its neighbour Global Lithium looks like. It will then head back in and drill its own program and will try to leverage off their results.
“If they get any success, then we can vector in on our data a bit more. We have to come back and do it again so that’s exciting. You’re literally one drillhole away from discovery with this sort of stuff.
While we have plenty of opportunities before us, the biggest value-add for investors is generally at this early stage discovery and that’s the most exciting.”
Write to Adam Orlando at Mining.com.au
Images: Alchemy Resources
Alchemy Resources (ASX:ALY) will undertake heritage surveys at the Taupo North prospect in November this year in conjunction with project-wide soil geochemistry at its Lake Rebecca Project in Western Australia.
The $11.78 million market capitalisation company says heritage surveys will occur at the Taupo North prospect, where soil sampling demonstrates a ‘broad’ zone of anomalism across a 3km wide area, ahead of a targeted lithium drilling program scheduled to begin shortly after.
This work follows the recent mapping of lithium targets at its Karonie Project and a project-wide lithium geochemical review by an external lithium consultant at Karonie, Roe Hills, and Lake Rebecca.
Further structural mapping will be undertaken to determine where the other large north-northeast structures intersect the quartz dolerite. Samples have been submitted for multi-element analysis to geochemically classify the internal units within the dolerite and to find the most beneficial gold host unit.
Mapping to date at Karonie has identified additional lithium-caesium-tantalum (LCT) pegmatite outcrops at the Mesquite prospect, which contain coarse lepidolite crystals.
Alchemy says alongside the coarse lithium crystals observed in pegmatite outcrops at Mesquite, rock chips returned grades of up to 4,500 parts per million (ppm) lithium in sample PN004.
The company notes the outcrops trend to the northeast, versus the interpreted north-south orientation of the Hickory prospect, and have been mapped over 1,200m in strike length towards the Pecan prospect.
Alchemy reveals results from the lithium geochemistry review highlight numerous targets across the Karonie, Roe Hills, and Lake Rebecca projects.
The company expects to utilise these results to form the basis of exploration planning over the next year at Karonie and Lake Rebecca.
As of 10:25am AEDT, Alchemy’s share price has increased by 10% to $0.011.
Alchemy Resources Chief Executive Officer (CEO) James Wilson says both Karonie and Lake Rebecca are opening up as a new ‘fertile’ system potentially prospective for lithium mineralisation.
“This is a very exciting development, with a big pegmatite system that we can now confirm has lithium minerals outcropping. Our RC drilling previously intercepted spodumene at Hickory, and now we have exposures of lepidolite at Mesquite, which sits 2,500m to the north, with only a handful of holes located between the two target areas within our 100% owned tenure.
In addition, the recent geochemical review has highlighted that we have a fertile system over the whole Karonie and Lake Rebecca tenure which has almost no lithium-focused exploration. We have now prioritised our programs to follow up on these targets with work already underway.”
“We have now prioritised our programs to follow up on these targets with work already underway”
Alchemy Resources is a gold and base metals explorer focused on the discovery and development of resources within Australia.
The company’s Karonie project is located about 90km east of the township of Kalgoorlie, while its Lake Rebecca Project sits about 10km to the southeast of Northern Star Resources’ (ASX:NST) Carosue Dam gold deposit.
Both projects are wholly owned by Alchemy.
Alchemy Resources had $5 million cash and cash equivalents at hand as of 30 June 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Alchemy Resources
Alchemy Resources (ASX:ALY) is looking to move forward with drilling at the Overflow deposit within its 80% owned Lachlan Project in New South Wales after delivering a maiden JORC 2012 Mineral Resource Estimate (MRE).
The $12.95 million market capitalisation company today (20 October 2023) reports a maiden JORC 2012 MRE for Overflow stands at 8.189 million tonnes (Mt) @ 1.30 grams per tonne (g/t) gold equivalent (AuEq) for 342,000 ounces AuEq from surface using an inferred 0.7g/t AuEq cut-off.
Alchemy reports there is substantial potential to expand the current JORC MRE through additional drilling, as the deposit remains open along strike and at depth. Alchemy’s Overflow tenements cover prospective structures and host rocks which extend about 30km to the north and 40km to the south of the MRE and remain poorly tested by modern exploration methods.
Structural modelling is continuing to help understand the structural controls on the ‘high-grade’ shoots and structural logging of historic drill core has been completed. Further work is planned to assess the geological interpretation fully, the company says.
Fieldwork is lined up to assess 2 untested regional targets between the Overflow Shear and an East-West structure, as well as the Overflow Splay.
Mineralisation is reported to remain open along strike and at depth, demonstrating ‘substantial’ potential to expand the MRE.
This expansion potential is supported by numerous targets, including the ‘high-grade’ Yellow Mountain prospect located 20km to the south, which have little to no modern exploration.
The MRE was prepared and verified by Perth-based geological consultancy Auranmore Consulting using a methodology best suited for the mineralisation style at Overflow.
Today’s maiden MRE is a culmination of more than 12 months work by Alchemy including a review, verification and interpretation of historical data; validation of datasets; integration of historical datasets which had previously never been digitised; and, development of a new geological model.
Alchemy Resources Chief Executive Officer (CEO) James Wilson says this MRE is the starting point for future growth at Overflow.
“The maiden Mineral Resource Estimate of 342,300 gold equivalent (AuEq) ounces of gold at Overflow establishes a solid base for growth in the centre of our 80% owned Lachlan Projects.
Importantly this is a high quality, independently conducted resource estimate which remains open at depth and along strike. The current resource footprint covers only a small portion of the prospective stratigraphy and sits near a number of existing operations. We believe there is a lot of potential for future growth, both along strike and at depth.
“Moving forward, our strategy is to conduct exploration to expand our resource inventory, commencing at Overflow North which has seen almost no modern exploration”
Moving forward, our strategy is to conduct exploration to expand our resource inventory, commencing at Overflow North which has seen almost no modern exploration. We are also planning work to target the depth and down-plunge extensions of the existing resource. The area has a lot of potential for high-grade mineralisation close to surface with many targets having not been followed up in nearly 20 years.”
Alchemy Resources is a gold and base metals explorer focused on the discovery and development of resources within Australia.
The company’s majority-owned Lachlan Project is located within the ‘metal-rich’ Cobar Basin and Central Lachlan Fold Belt in New South Wales, with its Overflow deposit covering ‘prospective’ structures and host rocks which extend about 30km to the north and 40km to the south of the MRE.
Alchemy Resources had $5 million cash and cash equivalents at hand as of 30 June 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Alchemy Resources
Alchemy Resources (ASX:ALY) has begun a diamond drill program at the Challenger prospect within its wholly owned Karonie Gold and Lithium Project in Western Australia.
The $12.95 million market capitalisation company says drilling will include 2 diamond core holes at Challenger, which was targeted following an assessment of historic drilling and mapping in 2021.
Alchemy notes the prospect is situated along strike from the French Kiss open pit to the northwest, which is owned and operated by Silver Lake Resources (ASX:SLR).
Historic drilling at the prospect has also returned anomalous intercepts up to 16m @ 1 gram per tonne (g/t) gold from 112m.
Alchemy reports drilling is being undertaken in conjunction with Taupo North Lithium and rare earths soil sampling programs, which are due for completion shortly.
Taupo North heritage survey access requests are underway.
Preparations are also underway for the start of a reverse circulation (RC) drilling program at its Western Brown prospect.
Alchemy announces it is also nearing the completion of a Mineral Resource Estimate (MRE) for its Overflow Project in New South Wales.
Addressing the start of drilling, Alchemy Resources Chief Executive Officer James Wilson says: “We are excited to be back out at Karonie testing our gold targets at Challenger where there has been no follow-up drilling since 2012.
“We are excited to be back out at Karonie testing our gold targets at Challenger where there has been no follow-up drilling since 2012“
At the same time, preparations are underway for completing lithium focussed soil sampling at Taupo North and the next program at Western Brown adding to a strong pipeline of lithium and gold project news over the next quarter.”
Alchemy Resources is an ASX-listed explorer focused on growth through the discovery and development of gold, base metal, and battery metals in Australia.
The company also has a ‘significant’ land package in the Carosue Dam – Karonie greenstone belt within the Eastern Goldfields region in Western Australia.
The Karonie project is located about 90km east of the township of Kalgoorlie and is situated south of the Bombora deposit.
Alchemy Resources had $5 million cash and cash equivalents at hand as of 30 June 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Alchemy Resources
Assay results from reverse circulation drilling at Alchemy Resources’ (ASX:ALY) Karonie Project in Western Australia returned up to 0.1% lithium with associated tin, tantalum and rubidium. Now, CEO James Wilson tells Mining.com.au the company will focus on ‘tracing’ the zone of enrichment ‘because all the levels are on fire’ in what he describes as an ‘exciting part of the world’.
Alchemy Resources (ASX:ALY) is planning follow-up drilling on lithium targets uncovered at the Karonie Project in Western Australia.
The $15.31 million market capitalisation company plans further drilling once detailed lithium and rare earth element (REE) infill soil sampling on the Taupo North prospect has been completed.
The company has received results from the recent lithium drilling campaign at Karonie, which returned up to 0.1% lithium oxide (Li2O), with associated pathfinder elements up to 45 parts per million (ppm) tantalum oxide (Ta205), 4,480ppm rubidium (Rb), and 40ppm tin (Sn).
Alchemy says these results outline a new zone that remains open along strike, with associated lithium-in-soils anomalism, extending for 3km to the southeast.
Commenting on the recent results, Alchemy Resources Chief Executive Officer James Wilson says: “The results at Taupo North show that the pegmatite system remains fertile several kilometres west of where we previously discovered spodumene and lepidolite outcropping at Mesquite.
“The results at Taupo North show that the pegmatite system remains fertile several kilometres west of where we previously discovered spodumene and lepidolite outcropping at Mesquite“
Further work is needed to test this area, and our crews have commenced soil sampling, and heritage clearance planning to allow follow-up drill programs near term. In the meantime, 2 gold focussed drill programs will commence shortly to follow up targets at Challenger and Western Brown.”
Diamond core drilling and reverse circulation (RC) drilling will be completed on the Challenger and Western Brown prospects, beginning in early September 2023.
Challenger is an advanced gold target with intercepts of up to 16m at 1g/t gold (from 112m) in ISRC10353. Mineralisation is hosted within a thick high-iron quartz dolerite sill, which is a similar host rock to the mineralisation at Ramelius Resources’ (ASX:RMS) Bombora deposit and the Golden Mile.
A significant Au-Bi-Mo-Te-W-Sb anomaly, which the company says is considered the best pathfinder for mineralisation, has been recognised from the aircore drilling in the area.
In addition, heritage survey requests have been submitted to clear the areas adjacent to Taupo North for future drilling programs.
Alchemy Resources is an Australian exploration company, focused on the discovery and development of gold, base metal, and battery metals within Australia.
As of 30 June 2023, the company had $5 million cash at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Alchemy Resources
Mineral explorer Alchemy Resources (ASX:ALY) is awaiting results from new zones of pegmatites recently discovered at the Taupo North prospect within its Karonie Project in Western Australia.
During the June quarter, the company completed 7 holes at Taupo North for 948m of drilling. Results indicated multiple shallow dipping lodes, with up to 13 zones uncovered in drillhole TNRC001. The company reports the prospective zone is about 400m wide and remains open.
In addition, Alchemy adds that at the Taupo prospect, drill results displayed a broad zone of lithium anomalism that extended for about 3km by 1.5km.
In Alchemy’s June quarterly report released yesterday (31 July 2023), the $16.49 million market capitalisation company says it focused on the completion of geophysics, mapping, and follow-up reverse circulation (RC) drilling over the quarter, which also uncovered pegmatites at the Mesquite prospect.
This confirmed Alchemy’s interpretation of a system developing at depth and within proximity of the Cardunia granite ‘Goldilocks Zone’.
Alchemy reports rock chip assays of the outcrop returned peak values of up to 2,723 parts per million (ppm) Li2O, 167ppm Cs, 62.8ppm Ta2O5, and 2,390ppm Rb2.
Moreover, during the quarter, the company completed a project-wide soil sampling program over the priority area at the Karonie lithium targets, which aimed to cover the Roe Hills and Taupo prospect areas.
Further, the company’s joint venture partner in the Bryah Basin Gold Project, Superior Gold, was recently purchased by Catalyst Metals through the acquisition of all the issued and outstanding common shares in the capital of Superior. The acquisition was completed at the end of June 2023.
Alchemy also notes land access agreement discussions are progressing in New South Wales, with a reconnaissance field trip being undertaken to familiarise the company’s geologists with historical exploration core and project areas.
As of 30 June 2023, the company had $5 million cash at hand.
Alchemy Resources is an Australian gold, base metal, and nickel-cobalt exploration company focused on its portfolio of exploration projects located across Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Alchemy Resources Ltd
Australian explorer Alchemy Resources (ASX:ALY) has defined new zones of pegmatites through geological logging at its wholly owned Karonie Lithium-Gold Project in Western Australia.
The company says the new pegmatites were defined in drillholes at Taupo North, with multiple zones of up to 186m downhole. At Pecan, zones of pegmatites have been observed down-dip of the lepidolite and spodumene outcrops discovered last month up to 75m downhole.
Alchemy reports the pegmatites in both areas are interpreted to extend at least 100m vertically from surface and remain open with varying widths from 1m to 5m. Follow-up is planned with work underway.
Commenting on the results, Alchemy Resources Chief Executive Officer (CEO) James Wilson says: “The discovery of extensive stacked pegmatites at Taupo North and Hickory is a very positive development.
“This confirms our model that pegmatites occur in proximity to the Cardunia Granite”
This confirms our model that pegmatites occur in proximity to the Cardunia Granite. Importantly, the pegmatites mapped at Hickory are continuous at depth, have a stacked geometry, and continue to the north and west under the shallow alluvial cover which extends for approximately 3km to the north, masking any surface geochemical expression.
Planning is now underway for follow-up exploration including detailed surface mapping, geochemical sampling, shallow drilling, and geophysics to identify pegmatites under alluvial cover prior to further deeper drilling.”
The company reports the Karonie lithium-focused drill program included 28 reverse circulation (RC) holes completed for 3,732m over the Cherry, Hickory, Pecan, Mesquite, and Taupo North prospects. The holes were designed to target the gravity lows along with interpreted and mapped pegmatite structures.
Alchemy says drilling targeted zones over a 5km strike length in the Hickory to Pecan corridor, and at Taupo North where historic shallow holes had intercepted pegmatites. The geology consisted of Archean volcanic basalts, intrusive pyroxene phyric dolerites, gabbros, and intermediate porphyries which cross-cut the older stratigraphy.
At Hickory, the lower-density pegmatites are interpreted to intrude into higher-density mafics, with the gravity lows trending towards the north from known pegmatite locations outlined from drilling and mapping.
Multiple previously unknown pegmatite targets were generated, as well as numerous large gravity lows flagged as ‘high-priority’ target areas for testing.
The company says known pegmatites occur at both Hickory and Pecan, trending north-south and north-east respectively. The gravity survey data shows analogous targets trending under the alluvial channel linking the 2 prospect areas over a 5km strike extent.
Alchemy says RC drilling at Taupo North targeted the down-dip extent of pegmatites observed in the 2 historic drillholes which were resampled and returned ‘highly anomalous’ multi-element re-assays. A total of 7 holes were completed at Taupo North for 948m of drilling.
Results indicated multiple shallow dipping lodes with up to 13 zones identified in hole TNRC001, while pegmatite intercepts were traceable over multiple holes with varying widths and depths up to 186m downhole.
Alchemy reports further drilling is required to explore for further pegmatites under cover to the north of Hickory towards Pecan, due to the presence of a ‘significant’ alluvial channel about 3km in strike which masks any geochemical signature.
The company says the recent drilling demonstrated that pegmatites continue undercover at Pecan and Taupo North. As a result, Alchemy will use geophysics, broad-spaced auger, aircore, and RC drilling to investigate prospective areas.
Alchemy Resources is an Australian explorer focused on discovering and developing gold, base metals, and battery metals across its Karonie Lithium-Gold Project in Western Australia, and its Lachlan/Cobar Basin Projects in New South Wales.
The company also maintains its interest in the Bryah Basin Project in Western Australia, where other explorers are continuing to advance gold and base metal exploration.
Alchemy has $5.6 million cash at hand, according to its latest company presentation published on 11 May 2023.
Write to Harry Mulholland at Mining.com.au
Images: Alchemy Resources Ltd
Alchemy Resources (ASX:ALY) has landed approval to begin a lithium-focused reverse circulation (RC) drill program in June 2023 at its Karonie Project in Western Australia.
The drilling program consists of 42 holes for about 5,000m and is designed to test a series of ‘high-priority’ gravity and geochemical targets of about 5km strike extent along the corridor where the Cherry, Hickory, Mesquite, and Pecan prospects lie.
Additionally, the holes have been designed to test the Taupo North target, which sits 3km to the west of Hickory and has pegmatites logged in historic holes that have never been assayed for lithium.
Commenting on the program, Alchemy Resources Chief Executive Officer (CEO) James Wilson says: “We are really excited to get back on the ground to test these targets following the extensive geochemical and geophysical analysis.
“We now have 7 highly prospective targets, heritage clearance, a drilling contractor, and ideal weather conditions ready for the drill campaign at our wholly owned project”
We now have 7 highly prospective targets, heritage clearance, a drilling contractor, and ideal weather conditions ready for the drill campaign at our wholly owned project.”
At the Hickory, Mesquite, and Pecan prospects, the drilling program will comprise 39 holes with depths of up to 132m.
Meanwhile, at the Taupo North prospect, the program will consist of 3 holes with depths up to 132m, which will target the down-dip extent of pegmatites observed in the 2 historic drillholes.
The Karonie Project is prospective for lithium and gold and is located 110km east of Kalgoorlie. The drill targets are located about 8km to the south of Global Lithium Resources’ (ASX:GL1) Manna Project.
Alchemy Resources is an ASX-listed exploration company focused on growth through the discovery and development of gold, base metal, and battery metals within Australia. The company’s wholly owned projects include the Karonie and Lake Rebecca projects in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Alchemy Resources Limited
ASX-listed exploration company Alchemy Resources (ASX:ALY) has uncovered pegmatite extensions under alluvial cover through a gravity survey conducted over the Hickory prospect, located within the Karonie Project in Western Australia.
This ground gravity survey was completed in December 2022 with custom data processing by Perth-based consultancy NewGen Geo, which specialises in the application of geophysics to pegmatite exploration.
The high-resolution gravity survey measured variations in the Earth’s gravity field caused by differences in rock density. Lower density pegmatites intruded into higher density metamorphosed mafics at Hickory are expected to be expressed as a gravity low response.
The gravity data, together with known pegmatite locations from drilling and mapping, were used to interpret the northern extensions and outline new targets for follow-up work.
Commenting on the gravity survey, Alchemy Resources Chief Executive Officer (CEO) James Wilson says: “We are extremely pleased with how well the gravity survey has managed to map out the extension of pegmatites at Hickory. The learnings and knowledge gained from this survey will be used to help map out pegmatites at our other high-priority lithium targets at Karonie.
“The learnings and knowledge gained from this survey will be used to help map out pegmatites at our other high-priority lithium targets at Karonie”
With approximately 4km of alluvial cover northwards to Pecan, we are excited to begin using gravity and high-resolution drone magnetics technology to aid in mapping out the pegmatite system to the north.”
Alchemy reports pegmatites are interpreted as the gravity lows that trend towards the north from the existing pegmatite drill intercepts. Known pegmatite locations from drilling and mapping were used to interpret these extensions and as a result, multiple previously unknown pegmatite targets have been generated.
The company says it has commenced planning for an expanded gravity survey to map the prospective structures under cover over a 5.4km by 1.6km area towards the Pecan prospect. The expanded survey will also extend to the west and east of the existing mapped pegmatites as it is believed the system remains open in all directions.
The processed gravity data suggests that the pegmatites that were intercepted in the 2022 Hickory drilling continue striking north towards the favourable structures, and the survey will assess the potential for pegmatites within the favourable northeast trending structures. Alchemy also notes structural weaknesses are an important factor for the formation of lithium-caesium-tantalum (LCT) pegmatite systems.
Alchemy will also continue detailed mapping in the areas north of Hickory to further enhance the geological model, and begin a mapping and sampling program on E28/2681 and E28/2667.
Concurrently, the company is completing an XRD analysis of drill samples to further enhance the understanding of the pegmatite mineralogy of recent drilling, and is planning a follow-up reconnaissance mapping and sampling program at the Lake Rebecca Project.
Alchemy Resources is an exploration company focused on growth through the discovery and development of gold, base metal, and battery metals within Australia. The company’s wholly owned projects include the Karonie and Lake Rebecca projects in Western Australia.
It also holds an 80% interest in the Lachlan Fold Belt, and an 80% interest in the West Lynn Project in New South Wales with Heron Resources (ASX:HRR), as well as a 20% interest in the Bryah Basin Project with Sandfire Resources (ASX:SFR) in Western Australia.
Images: Alchemy Resources Limited
Alchemy Resources (ASX:ALY) reports it has completed first pass, project wide regional reconnaissance exploration at its 100% owned Lake Rebecca project in Western Australia (WA).
The Australian gold, base metal, and nickel-cobalt extraction company reports reconnaissance was undertaken throughout the ‘Goldilocks Zone’, which is considered prospective for lithium (Li2O) mineralisation.
It is also reported that the company has also received results from a targeting review conducted by geological consultancy company Lithify on the tenement package.
Results from the targeting review demonstrated that the Lake Rebecca project is a ‘highly prospective’ tenement that has regional scale flexures on both the Keith Kilkenny and Claypan shear zones.
The project is also considered prospective due to its proximity to nearby large scale 1 million ounce gold deposits.
Commenting on the commencement of exploration, Alchemy Resources Chief Executive Officer (CEO) James Wilson says: “This review is a great outcome and highlights the prospectivity of the Lake Rebecca tenements. Targets in the north of Lake Rebecca have never been explored for lithium and have had very little exploration of any kind historically.
“This review is a great outcome and highlights the prospectivity of the Lake Rebecca tenements”
Near term we are looking forward to conducting further reconnaissance exploration to determine if the numerous granite bodies and mapped pegmatites and other felsic dykes in the region display fertile chemistry for lithium-caesium-tantalum mineralisation. We aim to piggyback our gold exploration in tandem with this work.
The structural review reaffirms the exceptional prospectivity of our large tenement package for LCT mineralisation at Lake Rebecca in what has historically only ever seen gold and base metals exploration.”
Alchemy Resources also notes that the review focused on generating “camp scale” prospective areas for follow-up based on structural and lithological criteria.
Over 7 target areas for lithium exploration and 5 target areas for gold exploration are reported to have been defined by the study.
Meanwhile, reconnaissance work also discovered the existence of pegmatites and granite dykes in the region, however these discoveries require additional mapping and follow-up.
In addition, the combined lithium targets from both the Lake Rebecca and Karonie deposits represent over 160km of semi-contiguous strike that cover over 1,700km-square of highly strategic tenure.
Alchemy Resources is an Australian exploration company that is focused on growth through the discovery and development of gold, base metal and batter metals within Australia. The company’s Lake Rebecca project is located in Western Australia’s Eastern Goldfields and comprises 7 granted exploration licences and 3 applications that cover a total land area of 570km-square.
The project is located about 100km east of the township Kalgoorlie within a highly prospective geological setting, covering greenstones, numerous internal granites and known bearing structures.
With first pass, project wide regional reconnaissance exploration at the project now complete, Alchemy Resources announces it is progressing with access agreements with the Natrive Title Groups to enable access into the areas around the northern tenements.
Additional reconnaissance mapping and sampling of lithium and gold targets is also planned to identify prospective areas for follow-up soil sampling and aircore drilling.
Images: Alchemy Resources Limited & iStock
Alchemy Resources (ASX:ALY) report its wholly owned subsidiary Goldtribe Corporation has won a ballot for a key exploration licence application (E28/3207) on a tenement that forms part of Alchemy’s 100% owned Karonie Lithium and Gold Project.
The new licence is located 120km to the east of Kalgoorlie and is contiguous with both GL1 to the east and BRB to the north.
The area is highly prospective and Goldtribe’s application was competing with multiple parties. As a result, priority to the ground was determined by a ballot conducted by the Mining Warden in Kalgoorlie, with Goldtribe drawn first in the ballot.
The application will now progress through statutory process with title expected to be granted later this year.
“E28/3207 is strategically located on the doorstep of Global Lithium Resources’ Manna Deposit, and along strike of Breaker Resources’ Lake Roe deposit”
Addressing the result, Alchemy Chief Executive Officer James Wilson commented: “E28/3207 is strategically located on the doorstep of Global Lithium Resources’ Manna Deposit, and along strike of Breaker Resources’ Lake Roe deposit.
The acquisition of this tenement builds on our footprint of highly prospective and strategic tenure which sits in proximity to some of the most prolific lithium and gold projects in Western Australia.
The new lease covers 24.8km-square of greenstone and intrusive units and has seen limited drill testing with modern exploration methods. We are delighted to have secured this ground and look forward to starting work as soon as the tenement is granted.”
The Karonie Project now includes 12 exploration licences and two exploration licence applications covering 1,220km-square of highly prospective mineralised structures within Kurnalpi Terrain greenstones 100km east of Kalgoorlie (Figure 1).
The tenements are located along strike of Silver Lake Resources (ASX:SLR) Aldiss Mining Centre, are within 50km of Silver Lake’s Randalls processing plant and cover 38km of the under-explored, gold endowed Claypan Shear Zone commencing just 12km along strike to the south of BRB’s Lake Roe deposit.
Lithium pathfinder anomalism has recently been outlined within 8km of GL1’s Manna Lithium deposit.
Alchemy Resources is an Australian exploration company focused on growth through the discovery and development of gold, base metal, and battery metals within Australia.
Alchemy has built a significant land package in the Carosue Dam – Karonie greenstone belt in the Eastern Goldfields region in Western Australia and has an 80% interest in the Lachlan/Cobar Basin Projects in New South Wales.
Alchemy also maintains its interest in the Bryah Basin Project in the gold and base metal-rich Gascoyne region of Western Australia, where Superior Gold (TSX-V:SGI), and Sandfire Resources (ASX:SFR) are continuing to advance gold and base metal exploration, respectively.
Write to Adam Orlando at Mining.com.au
