Alchemy Resources (ASX: ALY) has kicked off some diamond drilling at the Gascoyne Gold Project this week with results to help underpin the Scoping Study on the Wilgeena project at Gascoyne.
Gascoyne includes the Hermes gold deposit, the Wilgeena gold deposit and the Central Bore gold prospect, which lies within the company’s Magnus Copper Project, strategically located to the west of Sandfire Resources’s (ASX: AFR) DeGrussa copper-gold deposit.
Exploration will include an air-core program to test numerous targets at Wilgeena outside of the existing resource, and then diamond drilling to test the continuity of high-grade veins at Central Bore.
The outcome of the program will effectively determine the viability of Gascoyne.
John Arbuckle, director, said “Continuing exploration success at Wilgeena and Central Bore confirms that the Gascoyne Gold Project shows encouraging signs that it can provide additional gold resources.
“These drilling programs, in conjunction with the results of metallurgical testwork, will provide the information needed to help determine the economics of bringing the Gascoyne Gold Project into production.”
Hermes has an Indicated Resource of; 1.7 million tonnes at 2.4 grams per tonne (g/t) gold, equivalent to 131,000 ounces.
At Wilgeena, located 15 kilometres south of Hermes, Alchemy estimated a maiden Indicated Resource of; 659,480 tonnes at 2.34g/t gold, equivalent to 49,536 ounces.