Alchemy Resources (ASX:ALY) shares jump on lepidolite and spodumene discovery at Karonie

Highlights

• Ground truthing has found lepidolite and spodumene outcropping at surface
• Latest results have confirmed the presence of surface lithium mineralisation with assay result of 2,723ppm lithium oxide, 167ppm caesium, 2,930ppm rubidium and 62.8ppm tantalum pentoxide
• New pegmatites are close to the area where November 2022 RC drilling intersected spodumene at Hickory

Alchemy Resources Limited (ASX:ALY) -- an exploration company with interests in gold, base and battery metals -- has announced the discovery of new pegmatite bodies with lepidolite and spodumene on new gravity target areas. The assay result from rock chip sampling at Alchemy's WA-based Karonie Project has determined the presence of surface Li mineralisation (2,723ppm lithium oxide, 167ppm caesium, 2,930ppm rubidium and 62.8ppm tantalum pentoxide).

The gravity survey indicated that the known pegmatites could stretch beyond the structures that emerged during the recent drilling program, which intersected visual spodumene. The multi-element soil sampling on the Roe Hills and Taupo areas has also returned very positive results, says the company.

The next steps would include finalisation of drill planning to test gravity target areas (Hickory, Mesquite and Pecan), continuation of ground truthing (Roe Hills, Taupo and Mesquite), and assessing the ground survey potential to delineate buried pegmatites (Taupo and Roe Hills).

Source: Company update

Shares soar 11%

Triggered by the update, ALY shares gained over 11% to trade at AU$0.020 at the time of writing on 19 May 2023.

Lithium-Caesium-Tantalum (LCT) pegmatites

Gravity survey assessment has identified gravity lows toward the north from the existing pegmatite drill intercepts. Numerous previously undiscovered targets have been found with many large gravity lows now flagged as priority areas for testing. Alchemy states outcropping pegmatites can be seen at Hickory and Pecan, trending north south and north-east/south-west, respectively.

Field checking of gravity areas was done earlier this month with 12 rock chip samples from multiple locations. The lepidolite /spodumene rock-outcrop is present at the southern end of a high priority gravity target area, with no drilling activity done previously in this area (largest of four high priority target areas having strike length of ~2.5km to the north, towards Pecan).

Rock-chip sampling data and assay results; Source: Company update

Roe Hills soil sampling

GSWA mapping has found high density of narrow plagioclase and porphyritic dykes and quartz veins next to granite contact zone. The follow up soil sampling in 2023 (previous programs targeted gold) targeted lithium on a 400m x 400m offset grid spacing. Results demonstrate numerous large-scale anomalies within a 12km x 6km zone and another area of 3.5km x 3.5km.

Taupo soil sampling

Multi-element soil sampling this year shows broad zone of Li anomalism extending approximately 3km x 1.5km. Additionally, two historic drillholes (north of the prospect) show amazonite pegmatites.

Further steps

Finalisation of drill activity planning (Hickory, Mesquite and Pecan), continued mapping (Roe Hills, Taupo and Mesquite), and assessing potential for gravity surveys (Taupo and Roe Hills) are the next steps to be undertaken by Alchemy.