Alchemy Resources (ASX: ALY) has received an upgrade for the JORC Indicated Resource at the Hermes Gold Deposit to 2.79 million tonnes (Mt) at 2.19 grams per tonne g/t gold, equivalent to 196,650 ounces (oz) of gold.
This revised resource, estimated by Simon Coxhell of Coxsrocks Pty Ltd using a 0.5g/t gold lower cut-off grade, represents an approximate 50% increase from the previous estimate.
The previous estimate was 1.68 Mt at 2.39g/t gold for 130,000oz of gold, conducted by Snowden & Associates based on drilling up to 1998.
Hermes is part of Alchemy’s Gascoyne Gold Project located 25 kilometres east of Peak Hill in Western Australia.
The resource consists of five areas of gold mineralisation – Trapper, Trapper West, Hawkeye, Winchester and Blake.
Since Alchemy acquired the project from Troy Resources in 2008, significant work programs including systematic data validation and review, geological mapping, aircore and RC drilling, diamond drilling and metallurgical testwork have greatly improved the understanding of the Hermes deposit to a vertical depth of 150 metres.
Assay results from recent diamond drilling into four areas of gold mineralisation confirmed the grade and width of mineralisation at Hermes and highlighted the presence of robust high-grade zones.
Highlights included: 8 metres at 24.75 g/t gold from 126 metres, 4 metres at 16.47 g/t gold from 90 metres, and 4 metres at 8.57 g/t gold from 136 metres.
The mineralisation is open at depth and further drilling has excellent potential to add to the known resource and expand the area of gold mineralisation outside of the Indicated Resource.
Total Indicated Mineral Resources at the Gascoyne Gold Project now total 246,000oz of gold, contained at the Hermes and Wilgeena deposits.
The company is planning follow-up resource definition drilling programs at Hermes and at the Central Bore Prospect.