Investors reacted to news that initial results of a VTEM survey by Alchemy Resources (ASX: ALY) has provided evidence of 13 discrete conductors at its exciting Magnus Copper/Gold Project in the Gascoyne District of Western Australia.
During the morning trade, shares in the company shot up 8.5c, or 13.5%, to 71.5c.
The 13 conductors, which will be futher evaluated with drill testing in the first quarter of 2010, were selected after the processing of preliminary data and are based on stand out EM anomolies.
Alchemy has received the initial results of a helicopter borne VTEM survey completed in early December 2009 by Geotech Airborne over the Company’s Magnus Copper/Gold Project covering the Narracoota Formation, which extends from Alchemy tenements to Sandfire Resources NL’s (“Sandfire”) tenements in the east/
The 13 conductors identified clearly stand out in the preliminary VTEM data received and are discrete and display an electomagnetic (EM) response that persists at depth.
The high quality magnetic and EM information makes initial target selection simple and unambiguous.
Alchemy has moved quickly to identify targets and plan drilling programs to test these targets
Managing Director Michael Hannington said the company was at an "incredibly exciting" stage in the Magnus Copper/Gold Project.
"We have moved quickly to identify targets and plan priority drilling to test these targets," Mr Hannington said.
The VTEM survey was flown at 100m line spacing along the entire 30km extent of the Magnus Copper/Gold Project. This level of detail has provided a very detailed and precise level of data to provide confidence in choosing the initial conductors.
“Once Alchemy has received the final processed data from Geotech Airborne in the next few weeks, we will undertake further processing to generate conductivity depth images (CDI) to highlight the potential for further discrete conductors," Mr Hannington said.
In addition, Alchemy’s geologists have now completed field mapping the entire extent of the Magnus Copper/Gold Project area. Drilling programs have been submitted for 3 areas based on field mapping and soil sampling results undertaken by previous explorers, which is in addition to the areas identified by the VTEM survey.
Alchemy will work through January and February 2010 to integrate, with its final processed VTEM data, all field mapping, historic soil sampling and the work of previous explorers who were not aware of the enhanced prospectivity of the Narracoota Formation to host copper mineralisation.