Alchemy Resources Limited (ASX:ALY) is set for a busy year across its gold and base metals projects in Western Australia and New South Wales including a number of aggressive drill programs.
The company is ready to begin drilling at the Karonie Gold Project in WA after successfully completing two key heritage surveys last year with no areas of significance identified and government approvals granted.
An aircore rig has been booked for a drill program this month focusing on the 10-kilometre-long corridor adjacent and to the east of Silver Lake Resources Ltd’s Aldiss mining operations.
This phase-2 drilling will consist of around 7,000 metres testing targets with similar structural features to those that host Silver Lake’s Karonie deposits.
Well-funded
And this is just the start for 2022, says chief executive officer James Wilson. “With our recent capital raise and rights issue now complete, we are well funded and we look forward to getting boots on the ground and the drill bits turning.”
The company raised $3.08 million in the capital raising including $1,232,446 in an oversubscribed pro rata non-renounceable 1 for 6 entitlement offer which followed a placement to sophisticated investors that raised $1.85 million.
READ: Alchemy Resources set to drill at Karonie Gold Project after all clear from two key heritage surveys
At Karonie, east of Kalgoorlie, comprehensive archaeological and ethnographic surveys were conducted in November and December 2021 with the representatives of the Ngadju and the Kakarra Traditional Owners.
These surveys were designed to assess the areas of proposed exploration at the Karonie East, Western Brown, Gilmore, Esplanade and Challenger targets.
Advice from both groups confirms that the areas are clear for stated drill programs to proceed.
Karonie drilling
At the time Wilson said: “We are pleased to have finalised these key heritage surveys, which allow us to execute all planned drill programs in 2022 and beyond.
“We thank the Ngadju and Kakarra people for progressing the surveys in a timely fashion and look forward to a continuing strong relationship in the future.
“Looking forward, we are excited to hit the ground running when we commence drilling at the Karonie East target in early January.”
The planned drilling has been refocused on the Karonie East target area as a priority after high-resolution magnetics pin-pointed multiple high tenor structures in proximity to the existing deposits at Aldiss.
After the initial drilling campaign, further drill programs are planned for the Western Brown/Gilmore and Challenger/Esplanade targets during the year with the company awarded an EIS co-funding grant of $111,000 by DMIRS for this work.
Survey work at Yellow Mountain
Also, this month, Alchemy plans to complete heritage survey work at the Yellow Mountain Mine Prospect within the Yellow Mountain Project in central NSW.
In late November 2021, Alchemy hosted representatives of the Condobolin Aboriginal Land Council to the prospect in NSW, however, following significant rain in the region, part of the access was cut-off.
Yellow Mountain, along with the nearby Overflow and Overflow North projects, remains an important strategic landholding for Alchemy in the southern part of the Cobar Basin with a contiguous land position along strike from the Mineral Hill Mine.
Mineral Hill, which was recently acquired by Kingston Resources Ltd (ASX:KSN) for $22.7 million, is around 9 kilometres from Alchemy’s Melrose Project area and is contiguous with its tenement package which extends for 200 kilometres along strike at the Yellow Mountain, Overflow and Overflow North project areas.
The company is planning to carry out diamond and reverse circulation drilling at these gold and base metals prospects later in the year to test for extensions to existing mineralisation.
Lake Rebecca plans
At Lake Rebecca Gold Project in WA, north of Karonie, Alchemy’s tenement package is a highly strategic position adjacent to property associated with the recent takeover of Apollo Consolidated by Ramelius Resources Limited (ASX:RMS).
Heritage access agreements are well advanced while data collation from historic datasets is nearing completion.
Historical data shows limited drilling along a 30-kilometre strike extent along the Claypan shear to the north of Breaker Resources NL (ASX:BRB)’s Lake Roe discovery.
Alchemy is planning geochemical work, a targeted geophysical campaign and aircore drilling at Lake Rebecca this year with the aim of refining and targeting gold anomalies.