Alchemy Resources' (ASX: ALY) has intersected wide zones of gold mineralisation outside of the known resource at the Wilgeena Gold Project.
The results from the second‐phase reverse circulation (RC) drilling program highlight the potential to substantially boost the project’s development prospects.
Highlights include:
- 12 metres at 7.21g/t gold (81m) in WGRC035;
- 17m at 3.26g/t gold (128m), including 2m @ 8.81g/t gold, in WGRC034; and
- 21m at 2.27g/t gold (80m) in WGRC036.
The RC drilling program comprised 20 holes for 2,076 metres. The 10‐20 metre widths highlight strong potential for a resource upgrade and new targets will be drilled in the March 2011 quarter.
The project is located 15km south‐west of Alchemy’s (ASX: ALY) Hermes Gold Project and lies within the company’s Magnus Copper‐Gold Project to the west of Sandfire Resources’ (ASX: SFR) DeGrussa Copper‐Gold Project in Western Australia.
Wilgeena has an Indicated Resource of 659,480 tonnes at 2.34g/t gold for 49,536 ounces (oz).
Also, metallurgical testwork done at Wilgeena is currently being interpreted by a consulting metallurgist.
The testwork is on oxide core material obtained from a diamond drill program in August 2010 from each of Wilgeena’s three discrete mineralized zones.
The drilling and metallurgical testwork results will be used to complete a scoping study to determine the economic viability of the gold resource and to establish a timetable for bringing Wilgeena into production.
Aircore and RC drill testing of additional gold targets outside of the gold resource will be undertaken in the March 2011 quarter.
Alchemy will undertake an optimisation of the project using current mining costs and gold price to determine if output from Wilgeena can be treated at the nearby Plutonic Gold Mine.
This will be in accordance with the terms of either a toll treatment or ore purchase agreement between Alchemy and Barrick (TSE: ABX).
Alchemy has obtained miscellaneous licences for the planned haul roads from Hermes to the Plutonic Gold Mine and the company will now determine the most efficient route to transport the ore from Wilgeena to Plutonic utilising these planned haul roads.