Alchemy Resources Ltd (ASX:ALY) has begun drilling at its West Lynn project in New South Wales with the aim of advancing its nickel-cobalt exploration target to an inferred resource.
West Lynn is part of a farm-in and joint venture agreement with Heron Resources Ltd (ASX:HRR), which will enable Alchemy to earn an 80% interest in eight NSW licences by spending $1.5 million over the remaining three-year period.
The company is planning 80 shallow aircore drill holes for a total of 4,300 metres at both the West Lynn and Summervale prospects, with 100 metres by 200 metres hole spacing.
High-grade historical intercepts
The drilling program is designed to progress the existing nickel-cobalt exploration target of 15-30 million tonnes at 0.7-0.9% nickel and 0.05-0.07% cobalt to an inferred resource estimate.
Alchemy managing director Leigh Ryan said: “Alchemy is confident that the West Lynn Exploration Target will convert into a significant Ni-Co-Al resource, comparable to that of the Homeville deposit 40 kilometres to the south.
“The drilling program will also provide some high quality specific gravity and metallurgical samples in order to progress the project towards an initial scoping study.”
Previous historical drilling at West Lynn included intercepts of: 19 metres at 1.21% nickel and 0.10% cobalt from 36 metres; 16 metres at 0.98% nickel and 0.07% cobalt from 37 metres; and 14 metres at 1.17% nickel and 0.07% cobalt from 36 metres.
The second phase of drilling will focus on expanding the known nickel-cobalt mineralisation along the 22-kilometre West Lynn serpentinite magnetic anomaly.