Alchemy Resources (ASX: ALY) has found new gold mineralisation with potential for depth extensions of the existing mineral resource, from drilling at its Hermes Gold Deposit, part of its Gascoyne Gold Project in Western Australia.
Best intersections, applying a 1.0 g/t lower cut-off included:
- 8 metres at 24.75 g/t gold from 126 metres in hole HRD002
- 4 metres at 16.47 g/t gold from 90 metres in hole HRD003
- 4 metres at 8.57 g/t gold from 136 metres in hole HRD003
Assay results were received from four out of five diamond core holes drilled for geotechnical purposes during 2010. The holes targeted four areas of mineralisation at the Hermes Gold Deposit.
The Gascoyne Gold Project includes the Hermes and Wilgeena gold deposits and the Central Bore gold prospect. Hermes has an Indicated Resource of 1.68Mt at 2.39g/t gold (equivalent to 130,000 ounces of gold) and Wilgeena, located 15 kilometres south of Hermes, hosts an Indicated Resource of 659,480t at 2.34g/t (equivalent to 49,500 ounces of gold).
Diamond hole HRD003 was drilled into the Hawkeye area approximately 9 metres from RC hole TRC061 and 11 metres from TRC042. The 4 metres at 16.47 g/t intersection closely correlates with the 4 metres at 9.43 g/t gold from 95 metres previously reported in TRC061 and the 6 metres at 10.11 g/t gold from 65 metres in TRC042.
More significantly, the newly reported intersection of 4 metres at 8.57 g/t gold from 136 metres in HRD003 appears to be a newly defined zone of mineralisation.
A revised mineral resource estimate is currently being conducted on Hermes, which will incorporate drilling undertaken by Alchemy during 2009 and 2010 and a more constrained geological model.
This re-estimation is scheduled for completion before the end of September 2011.