Alchemy Resources completes phase one drill program at Karonie Gold Project

Alchemy Resources Ltd (ASX:ALY) (FRA:45A) has completed 27 holes for 3,121 metres of reverse circulation (RC) drilling within its 100%-owned Karonie Gold Project in Western Australia. The aim of the phase one program was to infill and extend mineralisation along strike to the north and south of Silver Lake Resources Limited's (ASX:SLR) (OTCMKTS:SVLKF) (FRA:4SL) Aldiss Mining Centre. This drilling has tested high priority ‘Karonie’ style targets at the Parmelia, Taupo, KZ5 and Warrior prospects. All RC drill samples have been submitted to ALS Kalgoorlie and additional drilling is planned subject to results. Parmelia and Warrior prospects Drilling at Parmelia Prospect included five holes for a total of 684 metres, targeting the strike extensions and down dip extents of existing intercepts including 26 metres at 1.6 g/t gold from 83 metres. The drilling intersected zones of silica altered dolerites with variable levels sulphides and quartz veining. At Warrior Prospect, drilling included four holes for 444 metres of drilling, targeting a coincident electromagnetic and gravity anomaly and intersected silica altered dolerites and black shales with quartz veining and sulphides. KZ5 and Taupo prospects Drilling at KZ5 Prospect included nine holes for 913 metres, targeting the up/down dip and along strike extension of the zones of existing mineralisation including 26 metres at 1.30 g/t gold from 125 metres. This drilling intersected variably altered dolerites with zones of sulphides and quartz veining close to the interpreted strike extension locations. At Taupo, drilling included nine holes for 1,081 metres, targeting infill and extension of the two primary lodes of mineralisation along strike from previous results including 10 metres at 1.8 g/t gold (from 68 metres). It intercepted zones of altered dolerites, quartz veining and sulphides in proximity to the interpreted strike extension locations. Karonie Project prospects location. Regional prospectivity The Karonie Project contains more than 80 kilometres of strike extent of Archean greenstone belt in the Eastern Goldfields. It has a high-quality geological setting, strategically located between major, regional-scale fault zones, the Keith-Kilkenny and Claypan Faults, which are interpreted to be deep-seated, domain-bounding structures within the highly gold-endowed Kurnalpi Terrane and which hosts the world-class Karari-Carosue Dam gold deposits 75 kilometres to the north. The project is strategically directly along strike to Silver Lake’s Aldiss Project and along strike to the south of Breaker Resources NL (ASX:BRB) (FRA:1X2) Lake Roe Gold Project. It is also in close proximity to existing processing plants and there is already substantial gold endowment in the area (Aldiss project resources >585,000 ounces at 1.9 g/t gold). Ongoing exploration Shallow drilling carried out by previous explorers indicates that the project area has a complex regolith with a stripped Archean profile overlain by reworked sediments, wind-blown sands and paleo-drainage channels and salt lakes. Consequently, the shallow cover is very complex and areas with shallow gold anomalism require deeper RC drilling and diamond core drilling to adequately test identified targets.