Alchemy Resources (ASX:ALY) continues lithium quest with developments at Karonie

Highlights:

• Alchemy Resources (ASX:ALY) is undertaking significant developments to unlock the lithium potential of its flagship Karonie project.
• The company has wrapped up maiden RC drilling across the project, highlighting multiple pegmatites zones.
• The project has witnessed detailed mapping, rock-chip sampling, and infill and regional soil sampling.
• ALY is focused on the next phase of project developments with many activities planned.

Australia-based Alchemy Resources Limited (ASX:ALY) has progressed a steady stream of developments to advance its flagship Karonie gold and lithium project in Western Australia. 

The project, spreading over 1,179km² of highly prospective mineralised structures within the Kurnalpi Terrain greenstones, includes 13 exploration licences and two licence applications.  

Maiden RC drilling highlights multiple pegmatites zones 

Alchemy recently wrapped up a maiden reverse circulation (RC) drill program focusing on high-priority lithium targets across the project area.

As per the company, the drill program results were quite encouraging, with geological logging defining multiple zones of pegmatites in drill holes.

These pegmatite zones also confirmed the company’s interpretation of a substantial system developing at depth at Hickory and to the north under shallow alluvial cover.

Also, a significant alluvial channel of ~3km in strike masks the geochemical signature. It has made the company plan for further drilling to explore additional pegmatites under cover, in the north of Hickory towards the Pecan deposit.

(Image source: ALY update, 14 November 2022)

Soil sampling and detailed mapping deliver key insights  

The company previously completed soil sampling and detailed mapping of the project prospects with the following objectives:

• For detailed mapping of the Cherry, Hickory, Mesquite and Pecan prospects
• For the identification of structural and zonation controls lying within the pegmatite system
• For obtaining additional rock-chip samples from the surface
• For detailed infill soil sampling

Based on the soil sampling and detailed mapping, the company has unveiled additional outcropping pegmatites and mapped several additional outcrops at the Cherry, Hickory, Mesquite and Pecan prospects.

Additionally, a broad zonation was recognised, trending from outer zones in the proximity to the Cherry prospect to tantalum-rich zones at Hickory.

Infill soil sampling indicates lithium and coincident pathfinder element anomalism

Assay results from the previously concluded 100m x 40m infill soil sampling at Karonie’s lithium prospects have highlighted lithium and coincident pathfinder element anomalism over all areas.

Regional soil sampling identifies multiple targets

Alchemy has also undertaken first pass project wide 400m x 400m regional soil sampling over three large areas lying 40-60km south of the Cherry and Hickory anomalies.

The results have identified broad but coherent and coincident lithium and pathfinder anomalism, which needs further verification.

What’s ahead for Alchemy?

The plan for the next course of development includes the following:

(Source: © 2022 Kalkine Media®, data source: ALY update, 14 November 2022)

The lithium demand and prices have been growing over the years. Lithium is a critical material gaining traction as a major component in lithium-ion batteries for the booming electric vehicle market. Alchemy has aligned its undertakings well to make the most of the buoyant market scenario. The company is engaging in major strides across the project, and with a gamut of planned activities, the coming months seem to be extremely important.

ALY shares traded at AU$0.027 on 29 November 2022.