Alliance Surged On ASX Post High-Grade Gold And New Targets Identification In 3DIP Survey At Weednanna Gold Deposit

Alliance Surged On ASX Post High-Grade Gold And New Targets Identification In 3DIP Survey At Weednanna Gold Deposit

Alliance Resources Limited (ASX: AGS) announced on 7th March 2019 that the company has received the results report of the 3DIP survey conducted at the Weednanna Gold Deposit Using the DIAS32 system. The Weednanna gold deposit forms a part of the Wilcherry Project, which is a joint venture (JV) between Alliance and Tyranna Resources Limited (ASX: TYX), with Alliance owning 81.41% of the project, and Tyranna owning 18.59% of the JV.

The company completed a three-dimensional induced polarisation (3DIP) surface geophysical survey during October 2018 by DIAS Geophysical and Gap Geophysics using the DIAS32 system, which is a leading technology in the field to help target further areas of mineralisation.

The results of the survey identified nine new target zones. The target zones defined by the 3DIP survey was based on the identification of the zone, where high chargeability zones correlate with the high-density zones and were in close proximity along the strike of the known high-grade gold shoots, which were initially delineated via drilling.

As per the company, five out of nine targets were shallow, which demonstrate the remaining near surface potential, to significantly grow the mineral resource.

Observation:

The identified gold mineralisation was closely associated with chargeability bodies that exhibit moderate to high chargeability and those chargeable bodies extended down to more than 200m below the surface.

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The company also identified large chargeable anomalies along the Northwest and Southeast tending fault, that is known to host gold but is constrained by limited drilling.

Past identification of Weednanna Project:

As per the company’s previous announcement on 6th September 2018, the Weednanna Gold deposit hosts a total of 1,097,000 tonnes of mineral resource, with a grade of 5.1g/t @ 181,000 ounces of gold. The 1,097,000 tonnes of the previously identified mineral resource is classified into 590,000 tonnes of indicated mineral resource, with a grade of 4.6g/t @ 88,000 ounces of gold and 507,000 tonnes of inferred mineral resource, with a grade of 5.7g/t @ 93,000 ounces of gold.

Alliance also disclosed about the high-grade results at Weednanna recently.

Company’s Future Plan:

The company is planning to continue the ongoing Reverse Circulation (RC) drilling till the late March to in-large the size of the Weednanna Gold deposit by stepping out from existing good shoots. Alliance Resources will now analyse the data collected from 3DIP survey along with the most recent drilling result and existing geophysical datasets to prioritize the future drilling targets.

As per the company, Albeit, the Weednanna Deposit has been extensively drilled, and targets of high-grade gold have been identified and drilled upon, there are still many new areas, which are likely candidates for future exploration. The new areas, which the company will explore, are zones, where chargeability zones correlated with high-density zones and are in close proximity of the existing high-grade gold shoots.

Stock Price Action:

The shares of the company reacted quickly over the combination of positive outcomes. The shares are currently trading 7.143% up, at A$0.105 (as on 7th March 2019) with an average volume of 64,469.


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