Alliance Resources Limited (ASX: AGS) is a metals and mining group, which has tenements in Western Australia and New South Wales. Projects include Gundockerta South Nickel-Gold Project, Nepean South Nickel-Gold Project, Weednanna Gold Deposit, Wilcherry Project in South Australia.
In a nutshell, the company is progressing with a high grade, shallow gold system Weednanna Project. It has 181,000 oz gold resource at 5.1 g/t gold (49% Indicated Resources). The scoping study has already commenced with the completion due in the first quarter of 2019. Any positive scoping study will enable a rapid transition towards the pre-feasibility study.
In the Wilcherry Gold Camp, there is significant exploration upside to increase the size of the mineral resource and near-regional potential for new gold discoveries as well. The project is located in the Gawler Craton, 40 kilometres north of the Kimba township, northern Eyre Peninsula. Alliance owns 80-person camp on leasehold land in Kimba, which will house the workforce during the plant construction.
In the Weednanna Gold Deposit, Alliance has drilled 119 reverse circulation holes for 18,623 meters till date. It has Bonanza high-grade gold shoots with most of the shoots opening in one direction. There is further potential for new gold shoots along strike and at depth in Weednanna Gold Deposit. Preliminary metallurgical test work on Shoots 1, 2, 3, and 4 resulted in approximately 90% average recovery using conventional grind and CIL.
The initial mineral resource estimate is classified as Indicated and Inferred as per JORC Code 2012 Edition. Optimizations were also run for A$1,600 and A$1,800 pit shells at the same open pit and underground cut-off grades, resulting in only a 4.5% and 0.5% reduction in contained gold, respectively.
The results of the 3DIP survey completed at the Weednanna Gold Deposit using the DIAS32 system have been received and indicate nine new targets, including five shallow targets, highlighting the remaining near-surface potential to grow the mineral resource. Many of the chargeable bodies extend down to greater than 200 meters below surface. Some of the largest chargeable anomalies are bounded by a NW-SE trending fault, which is known to host gold but has limited drilling.
As per the corporate overview, the company had a cash balance of $3 million as on 31-December 2018, with an enterprise value of $6.4 million and 104.3 million issued shares.
On the price-performance front, the stock of Alliance Resources Limited was trading at $0.092, up by 2.22% during the dayâs trade (at market close) with a market capitalization of ~$9.39 million. The stock has generated a negative YTD return of 20.67% and generated negative returns of 17.06%, 23.97% and 8.77% over the past six months, three months and one-month period, respectively. It had a 52-week high price of $0.148 and a 52-week low price of $0.085, with an average trading volume of ~93,814.
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