Alchemy Resources (ASX Code: ALY) has completed the company's 2009 drilling program at its Hermes Gold Project, hitting more significant gold intersections.
The assay results received from 2 reverse circulation holes drilled at Trapper West have intersected zones of significant gold mineralisation outside of the existing JORC code compliant indicated gold resource of 1.7Mt @ 2.4g/t gold (which equates to 131,000 ounces of gold).
The best results include 9m @ 6.54g/t gold from 126m (including 4m @ 14.07g/t gold from 126m) and 12m @ 8.35g/t gold from 74m (including 1m @ 84.2g/t gold from 82m).
During the recent drilling program, which commenced in October 2009, Alchemy drilled 18 RC drill holes of which 11 holes returned significant gold intersections. This represents a 61% success rate with regards to the current drilling program.
A series of new and existing targets have been identified for further drilling planned in the first quarter of 2010. The aim of this drilling is to increase the size of the existing indicated gold resource.
Aircore drilling results are due within the week.
Alchemy is awaiting final assay results from the 172 aircore drillholes (6000m) that were completed after the recent RC drilling program.
Within the next week the Company intends to provide the market with a detailed summary of all drilling conducted in 2009 plus an outline of the exploration and possible development strategies for Hermes in 2010.
Managing Director Michael Hannington said Alchemy conducted three RC drilling campaigns at Hermes in 2009 and each campaign returned significant high-grade gold intercepts.
"These latest results confirm the Hermes Gold Project hosts a number of mineralised zones that appear significantly larger than the known JORC code compliant resource of 131,000 ounces of gold," Mr Hannington said.
Mr Hannington said the company planned to develop a clear exploration strategy for the purpose of determining viable development options in 2010 to continue delivering results for shareholders.
“Eighteen months ago Alchemy paid A$10 per resource ounce for the Three Rivers Project, when the gold price was under US$900 per ounce," he said.
"The gold price is now over US$1,100 per ounce.
"Just last week the largest commodities trader on Wall Street, Goldman Sachs, forecast gold would reach US$1,350 per ounce in 2010. Such bullish market sentiment makes it an exciting time to be developing a new gold mining project.”
Mr Hannington said the world demand remained very strong for gold and new large discoveries are falling, the excellent results received from the drilling program just completed, plus intensive field mapping, has allowed Alchemy a much greater and increased understanding of the structural controls over the gold mineralisation at Hermes.