Alchemy Resources (ASX:ALY) Overflow maiden gold at Lachlan
October 20, 2023Alchemy Resources see a large maiden resource of 342,300 ounces of gold equivalent at the Overflow deposit as just the start of its growth stage at the Lachlan Projects in New South Wales.
Mineralisation still remains open along strike and at depth and sits within a short trucking distance of neighbouring resources, mines, infrastructure, and operating gold mills.
The initial independently verified MRE follows more work to assess structural controls on mineralisation, and Alchemy Chief Executive Officer James Wilson said the maiden estimate had established a solid base for growth in the centre of its 80 per cent owned projects.
“Importantly this is a high quality, independently conducted resource estimate which remains open at depth and along strike,” Mr Wilson said.
“The current resource footprint covers only a small portion of the prospective stratigraphy and sits near a number of existing operations. We believe there is a lot of potential for future growth, both along strike and at depth.”
Mr Wilson added that moving forward, the strategy was to explore and expand its resource inventory, beginning at an Overflow North prospect which remains largely untouched by modern exploration.
“We are also planning work to target the depth and down plunge extensions of the existing resource. The area has a lot of potential for high grade mineralisation close to surface with many targets having not been followed up in nearly 20 years,” he said.
Poorly tested prospective structures and host rock extend 30 kilometres north and 40 kilometres southbound of Overflow, but the Alchemy plan for now is to continue drilling on its newly established resource.
Structural modelling and logging of historic core continues to build an understanding of structural controls on high-grade shoots and the geological interpretation, and the company plan to reinterpret the information gathered in the 12 months it has taken establishing the Overflow resource.
There are plentiful advanced targets yet to be assessed at the Lachlan Projects, and Alchemy has a pipeline of lithium and gold news to come from its fully owned Karonie project near Kalgoorlie.
Regional Exploration potential and target areas
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