Alloy Resources (ASX: AYR) has received results from its Horse Well RC drilling program with the extention of the Palomino resource's mineralisation 200m to the north and significant grades and broad zones of low grade gold mineralisation at the Filly resource.
Horse Well is located at the northern end of the Yandal-Millrose Greenstone belt in Western Australia.
Results at Palomino include hole AHWR010: 6m@4.8g/t from 345m (containing 3m@8.2g/t, hole AHWR007: 2m@3.4g/t from 253m, and hole AHWR008: 1m@3.2g/t from 276m.
Results at Filly include RC hole AHWR011: 1m@6.3g/t from 327m, which was 150m below hole HWRC252 that had 1m@7.9g/t from 232m.
Hole AHR011 also contains broad zones of low grade mineralisation and intense silica alteration. For example: 5m@1.0g/t from 158m, 4m@1.9g.t from 212m, and the hole ended in mineralisation with 1m@1.2g/t from 238m.
Peter Hepburn-Brown, managing director, said these holes show that both Palomino and Filly remain open along strike and at depth and there exists the potential to further increase resources at Palomino and Filly by drilling deeper and in gaps between existing holes.
The Yandal Belt hosts the multi-million ounce Darlot-Centenary, Bronzewing and Jundee gold mines, and Horse Well sits 50 kms to the north of the Jundee Gold Mine and 90 kms to the north of Wiluna.
The company owns 100% of the project tenement through its subsidiary Eskay Resources Pty Ltd, and there are a number of new applications in the name of Alloy Resources surrounding the Horse Well tenement potentially giving the Company a significant land position in the Yandal-Millrose Greenstone belt.
The Horse Well portion of the Yandal-Millrose greenstone belt has only been explored in detail along the southern part, where the Company and previous explorers have identified 78,000 ounces of JORC indicated gold resources in near surface, oxide deposits where weathered bedrock is exposed at surface.
The recent drilling results will be used to increase the size of the gold resource base at Palomino, and the high grade zone will be followed up by future drilling.
The Filly prospect is located 1.4 kms south-southeast of Palomino. Filly is a broad zone of gold mineralisation and related alteration about 1.5 km long by 300 m wide. The area consists of a number of deposits: Filly NE, Filly Central and Filly SW. Filly NE has had no resources calculated.
The broad zones of low grade gold mineralisation and intense silica (and sometimes pyrite) alteration observed in drilling suggest that this prospect has the potential to contain wider zones of high grade gold mineralisation.
Alloy said further infill and deep drilling is required to explore in the key target areas at Filly.