Alchemy Resources (ASX:ALY) has commenced a drilling program within the historic Overflow gold and base metal mine in the Cobar Basin, New South Wales.
The project forms part of a farm-in agreement with Heron Resources (ASX:HRR), where Alchemy can earn up to 80% of the Lachlan projects through an expenditure of $2 million within 5 years.
The three project areas within Lachlan – Overflow, Eurow and Girilambone – are prospective for cobar-style and epithermal gold and Tritton-style copper mineralisation.
The current drill hole is testing beneath two significant drill intercepts encountered in historic drilling – 16 metres at 3.28 g/t gold equivalent from 162 metres and 7 metres at 4.53 g/t gold equivalent from 198 metres.
An initial targeted 350-metre deep diamond hole has been planned to confirm the continuity of high grade gold-silver-lead-zinc mineralisation.
Subject to further geophysical modelling of both airborne and downhole electromagnetic data, a 600-metre deep diamond hole is planned to test strong anomalies identified earlier.
The Overflow mineralisation is located at the northern end of a 6-kilometre-long, sparsely tested ironstone gossan.
Alchemy’s share price has increased by about 29% since the start of 2017, last trading at $0.022.