Highlights

• At the Overflow deposit, the maiden mineral resource has been estimated at 342Koz @ 1.30g/t AuEq (gold equivalent) from surface.
• Mineralisation at the deposit remains open at depth and along strike, indicating substantial potential to expand the current MRE.
• The project area covers multiple advanced targets, including the Yellow Mountain prospect, that are yet to be assessed.

Australian exploration company Alchemy Resources Limited (ASX: ALY) has reported a maiden mineral resource estimate (MRE) for the Overflow deposit at its Lachlan Project, New South Wales. The MRE is compliant with JORC 2012.

The Overflow deposit is estimated to contain 8.189Mt at 1.30g/t AuEq for 342Koz AuEq, establishing a solid foundation for growth at the deposit.

Data source: company update

Perth-based geological consultancy Auranmore Consulting has independently conducted the MRE using a 0.7g/t AuEq cut-off grade.

The company suggests that there lies significant potential to expand the current MRE via further drilling as the mineralisation at the deposit remains open along strike and at depth.

Solid foundation for growth at Overflow

The Overflow prospect sits within trucking distance of neighbouring resources, mines and processing infrastructure with the closest operating mills located less than 40km by road.

Initial MRE followed additional work to further assess structural controls on mineralisation, which remains open along strike and at depth. ALY believes that there is substantial potential to expand the current JORC MRE through additional drilling.

Overflow MRE (Source: company update)

Overflow Project Inferred Mineral Resource Estimate (0.7g/t Au cut-off) (Source: company update)

The tenements include prospective host rocks and structures extending nearly 30km to the north and 40km to the south of the MRE and is yet to be tested through modern exploration techniques.

 “Regional Target 1” is an untested intersection between an East-West structure and the Overflow Shear.

Multiple interpreted cross structures at the “Regional Target 2” intersect the Overflow splay and shear. Drilling conducted at this target in 1978 indicated 19m @ 0.33% Pb from 19m in BOBP2, and 0.28m @ 5.1% Cu from 106.51, and 0.7m @ 6.8% Cu and 1.2% Pb from 149.41m in BO1A.

Data source: Company update

ALY shares jump 9%

Triggered by the update, ALY share price gained 9.09% to trade at AU$0.012 apiece during early morning trading hours on 20 October 2023.