Alchemy Resources Limited (ASX:ALY) has improved its understanding of mineralisation at its wholly-owned Karonie Gold Project in Western Australia with a high-resolution magnetic survey, discovering multiple prospective targets including more than 10 kilometres of potential strike at the new Karonie East target.
Surveys were conducted over prospective structures to the north of existing resources at Taupo and KZ5 at Karonie East, and to the south at the new greenfield Western Brown and Gilmore targets.
Karonie East target represents several magnetic and structural features that Alchemy believes demand immediate investigation due to their geological similarity to the adjacent Aldiss Mine deposits of Silver Lake Resources Limited.
The company says these areas have been historically underexplored, with the bulk of past drill testing failing to reach bedrock.
Alchemy’s exploration intentions have been validated by the award of an Exploration Incentive Scheme grant of up to $111,300 from the Western Australian Department of Mines, Industry and Regulation. The grant is intended to co-fund drilling at the greenfield Western Brown and Gilmore target areas.
Multiple untested targets
“The UAV magnetics has generated very significant targets to test in our upcoming exploration programs. The highly competitive EIS co-funding grant adds weight to the prospectivity as it is determined by an independent panel of experts,” Alchemy Resources CEO James Wilson said.
“We look forward to getting boots on the ground to start testing these high-quality targets, which have not seen significant exploration in over 20 years.”
Heritage surveys of the project are already underway, with drill testing slated for early 2022, dependent on the company receiving expected heritage clearance in November 2021.
These exploration efforts follow a successful $3.1 million capital raising initiative completed in October and designed to fund drilling programs across the company’s projects.
Read: Alchemy to raise $3.1 million to start aggressive drilling push
Alchemy Resources
Alchemy Resources is an exploration company focused on growth through the discovery and development of gold, base metal and nickel-cobalt resources in Australia.
The company has built a significant land package in the Carosue Dam-Karonie greenstone belt in the Eastern Goldfields region in Western Australia and has an 80% interest in the Lachlan/Cobar Basin Projects in New South Wales.