Alchemy Resources’ Karonie Gold Project re-splits confirm high grades

Alchemy Resources Limited (ASX:ALY) has tabled high-grade results from one-metre resamples during an exploration update on its wholly-owned Karonie Gold Project in Western Australia. The exploration company recently conducted a phase one reverse circulation drill program over the gold asset’s KZ5, Taupo and Parmelia prospects, with composites resampled at one-metre intervals in a bid to highlight the high-grade zones within the original intervals. The phase one drill program at Karonie was focused on infilling and extending shallow zones of mineralisation at the three prospects, where anomalous intercepts were returned from most holes. Specifically, a 15.3 g/t gold hit in hole KZRC104 outlines the potential for shallow high-grade mineralisation, which remains open along strike. “Highest-grade intercept at KZ5” Speaking to the re-split results, Alchemy's CEO James Wilson said: “Drilling at Karonie has highlighted the significant potential of the KZ5 and Taupo prospects with good grades and widths that occur close to surface. “The one-metre resampling has returned some exceptional grades, including 1-metre at 15.3 g/t gold, which is an exciting development and the highest-grade intercept ever returned at KZ5. “Clearly more drilling is required to define the strike and depth of mineralisation in these areas, and planning is already underway for follow-up drilling. “With re-sampling now complete, we have commenced 3D modelling, with a view to potentially calculating a maiden resource at Karonie in the second half of 2021.” Re-splits confirm high-grades To get a better sense of the mineralisation intersected during the phase one program, Alchemy set out on a resampling mission at the three prospects. In particular, the KZ5 target showed promise, with re-splits returning: 1-metre at 15.3 g/t gold from 57 metres; 10 metres at 1.54 g/t from 25 metres, including 1-metre at 4.52 g/t from 24 metres and 4 metres at 1.98 g/t from 30 metres; and 3 metres at 1.45 g/t from 97 metres. The Taupo prospect also returned promising intersections, including: 1-metre at 4.02 g/t gold within 3 metres at 1.78 g/t from 106 metres; and 1-metre at 3.41 g/t from 49 metres within 3 metres at 1.58 g/t from 49 metres. Ultimately, Alchemy believes the high-grade results in hole KZRC104 may represent a new zone or structural offset, with mineralisation remaining open along strike and at depth. On the back of the resampling results, ore zone modelling and resource calculation have commenced. Mapping in southern tenements In tandem with the resampling, the explorer has completed surface mapping over targets to Karonie’s south, with results now pending. To date, Alchemy has completed detailed structural and lithological mapping on the southern tenements in the Esplanade-Batavia areas in a bid to define new targets and refining existing areas. Better high-grade results from these areas include: 3 metres at 14.6 g/t gold; 1-metre at 17.8 g/t; and 8 metres at 2.1 g/t. Alchemy believes a better understanding of the controls on mineralisation will greatly assist drill targeting at southern Karonie. All up, 69 surface rock chip samples have been submitted for multi-element analysis with results and interpretation pending. What’s to come? Next up, phase two drilling is planned to test the southern areas of the Karonie tenements, containing the Challenger, Batavia, Gilmore, Esplanade and Aldiss prospects. These are described as camp-scale structural targets with numerous high-grade intercepts that are yet to be followed up. Access agreements and drill planning to support this phase of work have now commenced. More broadly, analysis of historical drilling in the area shows that previous explorers were targeting broad near-surface targets, but Alchemy believes that there is scope to follow up these zones and assess their potential to host short strike length, high-grade structures. Beyond the phase two work, a phase three campaign has been designed for the Claypan Shear zone. Between 4,000 and 10,000 metres of aircore and rotary air blast drilling is planned to better explore prospects in this area, which has seen only limited modern exploration over the 35 kilometres of strike extent.