Alchemy Resources Limited (ASX:ALY) has reported extensive high-grade iron ore intersections from maiden reverse circulation (RC) drilling at the Southern Ridge target within the Valley Bore Project in Western Australia.
Valley Bore Project location.
The program, totalling 15 holes for 1,027 metres, tested the depth extent of high-grade hematite exposed at surface. Drilling confirmed continuous, high-grade mineralisation from surface to depths of at least 50 metres, with mineralisation remaining open along strike and down-dip.
Notable intercepts include:
- 5 metres at 60.1% Fe (61.6% Fe calcined) from 52 metres in VBRC002
- 8 metres at 61.7% Fe (63.5% Fe calcined) from 74 metres in VBRC002
- 20 metres at 62.9% Fe (64.8% Fe calcined) from 14 metres, including 16 metres at 64.3% Fe, in VBRC003
- 22 metres at 60.8% Fe (63.3% Fe calcined) from 5 metres, including 13 metres at 61.9% Fe, in VBRC010
- 8 metres at 60.1% Fe (62.4% Fe calcined) from 4 metres in VBRC011
- 17 metres at 59.8% Fe (62.1% Fe calcined) from 36 metres, including 8 metres at 61.2% Fe, in VBRC012
- 35 metres at 60.1% Fe (61.6% Fe calcined) from 42 metres, including 7 metres at 64.4% Fe, in VBRC014
- 35 metres at 58.8% Fe (60.4% Fe calcined) from 8 metres, including multiple higher-grade zones, in VBRC015
Southern Ridge prospect showing results from the recent RC drill program.
Assays for six remaining holes are expected mid-December.
CEO James Wilson said the results confirm substantial widths of high-grade hematite and support the company’s geological interpretation. Valley Bore sits on a granted mining lease and is close to sealed-road access to Geraldton and Port Hedland.
“We are extremely pleased with the exceptional high-grade assay results returned from Valley Bore. The drilling has delivered substantial widths of very high-grade iron ore, reinforcing the strength of the mineralised system and validating our technical approach. Importantly, the Project sits on a granted Mining Lease, offering a clear and potentially accelerated pathway to development should the economic case continue to build. These results represent a significant step forward for the Project, and we are already preparing for the next phase of work," ALY CEO James Wilson said.
"The opportunity is even more compelling given our recently executed heads of agreement option with Newcam Minerals Pty Ltd (“Newcam”), which not only strengthens our strategic partnership but also opens the door to potential logistics and transport solutions critical for commercialisation. Newcam is an iron ore producer with secure port facilities which is currently mining iron ore from its Mt Gould operations nearby. We look forward to progressing the next steps with Newcam as we advance this promising Project.”
The drill program forms part of the work commitment under Alchemy’s binding option agreement with Newcam Minerals Pty Ltd over the Bryah Iron Ore Project. Under the agreement, Newcam has subscribed for 10 million shares at $0.025 per share and paid a $500,000 option fee. Should Newcam exercise the option, it will acquire a 60% interest in several tenements for an additional $500,000 and assume management of a future joint venture. Alchemy will be free-carried to a decision to mine.
Previous mapping at Valley Bore identified multiple hematite-rich banded iron formations extending for more than 2 km, with rock chip samples returning up to 65.3% Fe. The recent drill results confirm that these high-grade zones persist at depth.
Alchemy plans further drilling to define the orientation and extent of the mineralisation and progress the project toward potential development.