Alchemy Resources (ASX:ALY) uncovers high priority drill targets at Karonie, shares jump - Kalkine Media

Highlights

• Detailed gravity and magnetics surveys have now been concluded at ALY's fully owned Karonie Project.
• The gravity survey mapped the known Hickory pegmatite with the results highlighting exploration upside under cover over an area of 5.4km x 1.6km.
• The outcomes indicate that the known pegmatites could extend beyond the structures seen in the recent drilling campaign.
• The magnetics has outlined numerous prospective lithium and gold targets.
• Alchemy Resources is planning to extend these survey areas to the west.

Australia's listed exploration company for gold, base metal, and battery metals Alchemy Resources (ASX: ALY) has informed about the completion of gravity and magnetics surveys at its Karonie Project (WA). The gravity survey has found high priority drill targets, with interpretated pegmatite continuing to the north of the reverse circulation (RC) drilling campaign, which was done at Hickory in November last year and showed visual spodumene.

Alchemy Resources has also confirmed that planning for the drilling program is underway, with the heritage survey set to begin over the coming days of this month.

Shares gain over 7%

ALY shares on ASX were up more than 7% and traded at AU$0.015 at the time of writing on 26 April 2023.

Hickory gravity survey showing interpreted pegmatite targets (pink) and mapped pegmatites (green); Source: Alchemy Resources’ ASX announcement dated 26 April 2023

The development

Alchemy says that data from the detailed gravity survey was acquired and interpretated under the guidance of Atlas Geophysics, Pegasus Airborne Systems and NewGen Geo. The survey covered the pegmatites area at the northern tenement boundary. The results suggest that pegmatites identified during the recent drilling could extend “well beyond” those structures. Also, gravity geophysics has emerged as an effective tool in delineating structures open along strike to the south and west.

Many previously unknown pegmatite targets have been identified by the gravity survey, with large gravity lows marked as priority target areas. The company is planning to expand the survey areas to the west. Alchemy would begin heritage surveys later this month, and the planning for a drill campaign is also underway, with target of testing the first of these target areas during the ongoing quarter.

Source: Alchemy Resources’ ASX announcement dated 26 April 2023

Statement by Mr James Wilson

The Chief Executive Officer of Alchemy Resources has lauded the outcome of the gravity survey, specifically outlining how pegmatites can be mapped using gravity. Mr Wilson also confirmed that drilling activity would be proposed to test these targets. The Karonie Project, where the November 2022 drilling program showed visual spodumene, is fully owned by the company.