Alliance Resources Announces the Results of Aircore Drilling for Gold at Weednanna East

Alliance Resources Limited (ASX: AGS) is into the business of mineral exploration having its tenements in the regions of Victoria and South Australia. The Company actively explores for gold, uranium, and copper.

The company has via the latest release on ASX disclosed the results of the aircore drilling for gold at Weednanna East and areas which has got the proximity with the Weednanna Gold Deposit. This aircore drilling was the part of the Wilcherry Project Joint Venture. This joint venture was entered between the Alliance (79.01%) and Tyranna Resources Ltd (20.99%). Eighty-five (85) aircore drill holes were completed for 3,101 meters in the previous quarter as a first pass test to extend known gold in regolith anomalism at Weednanna East. 

This drilling program consisted of four lines of 50m x 200m spaced holes designed to test around the existing gold in soil and regolith anomalism and extend coverage to the west of current RAB drilling at Weednanna East to cover a series of northwest-striking faults. All holes were drilled vertically to blade refusal. One-meter scoop assay results have now been received.

Four holes returned more significant than 100 ppb gold with the best result of:

  • 31 g/t of gold was extracted @ 2m from the 49m drilling in the hole namely 18WDAC078.

The zone of discontinuous greater than 100ppb gold anomalism extends over 1,000m and is open in the north.

The majority of the gold anomalism has a northeast trend and is located towards the end of the hole, near the saprolite/sap rock boundary. Given the iron-poor felsic nature of these host rocks, this is where the gold in regolith anomalism is expected to concentrate.

The magnitude and distribution of gold in the regolith may be indicative of primary gold mineralisation, and further drilling is warranted to better define the gold in regolith anomalies before bedrock drill testing.

The company’s Managing Director Steve Johnston has said that the Weednanna East is the first regional gold exploration target to be tested proximal to the Weednanna gold deposit. The management is very encouraged by these aircore drilling results which indicates the perspectivity of the district.

The loss for FY 2018, for the consolidated entity after providing for income tax and non-controlling interest amounted to $1,273,000 (30 June 2017: $1,150,000). Throughout the year, the company’s efforts were focused upon the Wilcherry Project Joint Venture (Wilcherry Project) in which the company has increased its interest to 75.01% (Tyranna Resources Ltd, 24.99%).

Now let us quickly have a look at the Alliance Resources Limited’s stock performance and the return it has posted over the last few months. The stock is currently trading at a price of $0.115 and is currently flat during the day’s trade, with a market capitalization of ~$11.99 million. The stock has yielded a Year Till Date returns of 25% and posted returns of 25%, -14.81% and -4.17% over the last six months, three months and one-month period respectively. It has a 52-week high price of $0.16, with an average volume of 51,791 approximately.


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