Eye on lithium and gold, Alchemy (ASX:ALY) reports action-packed December quarter

Highlights

• Alchemy Resources made progress across its 100%-owned Western Australian lithium and gold-focused projects during the December quarter.
• At Karonie, latest drilling work confirmed the presence of fertile LCT pegmatites with spodumene and lepidolite identified.
• The quarter saw completion of first-pass regional exploration across the Lake Rebecca project.
• Review work has defined multiple lithium and gold targets for follow-up at Lake Rebecca.
• ALY closed the quarter with AU$5.96 million in cash.

Alchemy Resources Limited (ASX:ALY) has reported significant progress across its 100%-owned Karonie Gold-Lithium Project and Lake Rebecca Project in its recently released quarterly report for the period ended 31 December 2022. 

Here’s a glimpse of the major work undertaken across these projects:

Drilling confirms fertile LCT pegmatites at Karonie

The quarter saw the commencement of the first-pass reverse circulation drilling at Karonie to test the high-priority lithium targets, Cherry and Hickory. 

The drilling program led to the discovery of pegmatite zones with varying widths from 1m up to 27m downhole. The company viewed this discovery as a validation of its interpretation of a substantial system of pegmatites developing at depth at Hickory and to the north under shallow alluvial cover.

Hickory Cross Section 6570780mN (Image source: company update)

Subsequent to the quarter, the company received assays, which confirmed a fertile Lithium-Caesium-Tantalum (LCT) pegmatite system at the Hickory prospect. In one of the holes, spodumene and lepidolite mineralisation was identified visually.

The company is yet to test multiple high priority targets under cover to the north.

Recently, the company also released results from a detailed gravity survey at the Hickory prospect. The results have successfully mapped out pegmatite extensions at the prospect.

The company now plans to advance detailed mapping focusing on regions towards the north of Hickory, undertake high-resolution drone magnetics survey, and broaden the gravity survey region to further map pegmatites under cover towards the prospects, namely Pecan and Mesquite.

Also, for regional lithium tenure at E28/2681 and E28/2667, the company has planned mapping and sampling work.

Multiple lithium and gold targets identified at Lake Rebecca

Alchemy wrapped up first pass, project-wide regional reconnaissance at Lake Rebecca.

Also, an assessment undertaken by Lithify Pty Ltd has boosted the company’s confidence in the project. This work has defined five targets to undertake exploration focused on the gold and seven targets for lithium-focused exploration work.

A reconnaissance visit led to granite dyke and pegmatite discovery across the project tenure, which the company says would need further mapping work and follow up. 

JV project overview

Alchemy has a joint venture with Superior Gold focused on gold and base metals exploration. The quarter saw regional exploration work and activities supporting the permitting and advancement of the Wilgeena Project.

At the Central Bore project, flora, fauna and environmental studies were undertaken, while mining proposals and mine closure plans focused on the Hermes South projects were advanced.

The project witnessed regional soil sampling over eight tenements during the quarter.

Financial stance

The company had AU$5.96 million in cash at the quarter end.   

Alchemy highlights that lithium targets across its two wholly owned Western Australian projects reflect semi-contiguous strike over 160km and covering highly strategic tenure spread over 1,700 square kilometres.

ALY shares were trading at AU$0.017 midday on 10 February 2023, up more than 6% from the last close.