Alchemy Resources (ASX:ALY) cranks up lithium exploration with focus on Karonie Project

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Alchemy Resources (ASX:ALY) cranks up lithium exploration with focus on Karonie Project

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 Alchemy Resources (ASX:ALY) cranks up lithium exploration with focus on Karonie Project
Image source: © Milslav78|Megapixl.com

Highlights

  • Alchemy is advancing its flagship Karonie Project for gold and the recent lithium discoveries.
  • Soil sampling has been completed for lithium prospectivity for zones up to 60km along strike from existing anomalies. Assay results are pending.
  • Additional infill soil sampling on high priority lithium targets has been completed with assays pending.
  • Lake Rebecca and Karonie Heritage Protection Agreements signed which covers an extensive area and sets the framework for cooperation going forward.
  • The projects in the NSW region present significant potential for battery and critical metals.

Alchemy Resources Limited (ASX:ALY) is progressing well with its lithium and gold exploration endeavours across the flagship Karonie Project in Western Australia.

In its recently released investor presentation, the company has highlighted exploration and development activities at Karonie as well as its other battery and precious metals-focused projects in Australia.

ALY projects (Image source: Company update, 29 August 2022)

Karonie Project: Gold and lithium exploration underway

At its fully owned Karonie Project, Alchemy is working on unlocking gold and lithium potential.

Alchemy has an existing resource of 111,000oz of gold over 3 near surface resources.

During a recent field exploration program, lithium bearing pegmatites were observed across the project tenure. Soil geochemical and rock chip sampling programs delineated the presence of pathfinder elements for lithium, including rubidium, tin, caesium, and tantalum.

The pathfinder elements were discovered over four prospects- Hickory, Cherry, Mesquite and Pecan. Soil sampling has been completed and additional testwork has been undertaken to assess the belt scale prospectivity along strike of the existing high priority targets. Over 2000 assays are awaited and are expected in the near future.

The rock chip analysis resulted in very high pathfinder anomalism:

  • Rubidium: 5880ppm
  • Caesium: 221ppm
  • Tantalum: 122ppm
  • Tin: 40ppm

Presence of rare element granitic pegmatites (Image source: ALY update, 29 August 2022)

Progress on Lake Rebecca Project

Alchemy has submitted an application for the Lake Rebecca Project Tenement, located in the close vicinity of Ramelius Resources’ (ASX:RMS) 1.1Moz Rebecca Deposit and within a multi-million-ounce gold corridor.

The total area of the tenement package is 562 km2. The land access agreements are in the final stages, and the company is now compiling the available exploratory data. Also, the project has never been tested for lithium potential.

Bryah Basin JV Project

In the Bryah Basin, Alchemy is working with Superior Gold and Sandfire Resources on joint venture projects.

The company holds a 20% interest in each of the projects, free carried to the production stage. This means that Alchemy does not need to pay its 20% share of the exploration and development expenses. Once the production commences, the company could pay its share from the profits.

Image source: ALY update, 29 August 2022

The Hermes South project, with an estimated gold resource of 114koz @ 1.6g/t Au, falls under the JV with Superior Gold. Once the deposit has produced more than 70 koz of gold, ALY will also receive a Net Smelter Royalty (NSR) of 1%.

Projects in NSW Region

With an 80% stake, Alchemy owns a diverse portfolio of assets in the NSW region. The four projects, located in the highly prospective Lachlan Fold belt and Cobar Basin, are believed to hold potential for base metals, gold, and battery metals.

Projects include:

  1. Melrose – prospective for IRGS Au-Cu
  2. Yellow Mountain – prospective for Cu-Au porphyry, VMS
  3. Overflow – prospective for gold and base metals
  4. West Lynn / Summervale – prospective for HPA, nickel and cobalt

The resource potential of the West Lynn / Summervale project is 21.3Mt @ 0.84% Ni, 0.05% Co and 6.6Mt @ 20.8% HPA.

Way Forward

Alchemy has also provided an indicative exploration timeline for 2022.

Image source: ALY update, 29 August 2022

Stock information: ALY shares traded at AU$0.022 on 9 September 2022. The shares have gained nearly 120% in the year-to-date period.

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