James Wilson, CEO of Alchemy Resources (ASX: ALY), explains how the Valley Bore prospect in Western Australia is being prepared for the next phase of exploration.
Alchemy believes the combination of high-grade outcropping hematite mineralisation on a granted mining lease near major roads and infrastructure highlights the significant near-term development potential of the project.
Mapping and sampling by Alchemy in 2008 and 2009 discovered high-grade hematite and banded iron outcrops over 2km in strike and up to 66.3% iron . Recent rock chip sampling by Alchemy returned similar high grades up to 65.9%. Wilson says iron ore rock chip grades above 58% are very encouraging and highlight the direct shipping ore (DSO) potential of the project.
“It’s an exciting opportunity with our leases surrounded by majors in the sector such as Sinosteel Midwest Corporation to the south. Hematite outcrops are evident over a 900m strike extent at the Southern Ridge target, and we have high-grade rock chip assays from new areas 3km away, so there’s a lot of potential to grow the project.”
