Alchemy Resources Limited (ASX:ALY) has notched up a hat-trick of highly sought-after tenement ballots at the Lake Rebecca Project in the Goldfields region of Western Australia.
The company’s wholly-owned subsidiary, Goldtribe Corporation Pty Ltd, made the tenement applications and has been granted ownership of the tenements.
Investors welcomed the company’s luck in the ballot, with shares up 7.69% to an intraday high of A$0.014 and increasing from A$0.012 at the close on October 12.
The exploration licences – E28/3048, E28/3053 and E28/3058 – are in greenstone belts, a highly prospective area along strike of Breaker Resources’ 1.4-million-ounce Lake Roe discovery and to the south of Northern Star Resources’ Carosue Dam Operations.
Part of Lake Rebecca
These tenements form part of Alchemy’s Lake Rebecca Project which sits strategically between three major gold deposits and spans 50 strike kilometres, covering a total of 562 square kilometres.
The tenements were highly contested, receiving multiple applications and activating the ballot system under the West Australian Mining Act.
Ballot process
The ballot process allows multiple entities to form an ownership sharing agreement between themselves prior to the ballot draw. If no agreement is made a mining warden will use a public, blind draw system to randomly select one of the competing applicants.
Alchemy’s subsidiary Goldtribe was drawn first in all three ballots.
“E28/3048, E28/3053 and E28/3058 are strategically located along strike of Breaker Resources’ Lake Roe deposit and build on our footprint of highly prospective tenure which sits along some of the most prolific gold projects in Western Australia,” Alchemy Resources CEO James Wilson said.
“The new leases cover 50.3 square kilometres of greenstone and intrusive units and have seen limited testing with modern exploration methods.
"We are delighted to have secured this ground and look forward to starting work as soon as the tenements are granted.”
Lake Rebecca Gold Project
Wholly owned by Alchemy, the Lake Rebecca Gold Project is the newest step in the company’s efforts to discover and develop gold, base metal and nickel-cobalt resources within Australia.
This project is highly prospective, containing greenstones, granitic intrusives and known gold-bearing structures within the Bombara-Carouse Dam region.
The company has built a large land package in the area, a relatively new addition to its assets. Alchemy also has an 80% interest in the Lachlan/Cobar Basin Projects in New South Wales and maintains its interest in the Bryah Basin Project in the gold and base metal-rich Gascoyne region of Western Australia.