Alchemy (ASX:ALY) ramping up lithium hunt at Karonie to cash in on battery market

Highlights

• Alchemy Resources operates a diversified asset portfolio that includes gold, base metals, and battery metals.
• The wholly owned Karonie Project has significant gold potential with the newly added advantage of hosting lithium mineralisation.
• The company identified four prospects on the Karonie tenement, which have shown multi-element soil anomalies associated with lithium-caesium-tantalum type pegmatites.

Alchemy Resources Limited (ASX:ALY) is a junior mineral explorer, which boasts a diverse mineral portfolio with projects spread across premium mining jurisdictions of Australia. Cashed up and led by a professional and very experienced team, the company is engaged in the exploration and potential mining of base metals, and battery metals and precious metals like gold and silver.

Alchemy’s flagship Karonie Gold Project holds a dominant land position in a major precious metals belt. Recently, the company delineated lithium prospects on the project. Since then, the company has been ramping up lithium exploration across the project, which had remained unexplored for the key battery metal until now.

Related read: Alchemy Resources (ASX:ALY) shares welcome additional pegmatites outcrops at Karonie

Alchemy exploring lithium opportunities at Karonie

Lithium and pathfinder anomalies have been identified by soil sampling and rock chipping activities in the Karonie tenement area. The samples were collected from the close vicinity of the Manna Lithium deposit. The mapping activities carried out by Alchemy’s geologists highlighted the presence of pegmatites in outcrop along strike of Manna.

The findings of the mapping program are important as no pegmatites were previously mapped in the area.

The company carried out a geochemical review to reaffirm the findings and ascertain the prospectivity of the Karonie Gold tenement area, which has historically been explored only for gold.  

Related read: Know about Alchemy Resources’ (ASX:ALY) advanced gold and battery metal projects 

Alchemy also undertook a multi-element soil sampling over the Pecan, Mesquite, Hickory, and Cherry prospects in a 400m x 400m offset grid.

The analysis of lithium and pathfinder elements indicated a strong anomalism pattern over 7 km long x 1 km wide, with the northern zone showing an increase in surface coverage that may obscure the outcrops.

Alchemy’s geologists have already completed the initial ground truthing of the anomalies, revealing pegmatites exposed in the Hickory Prospect and traced over a kilometre along strike. A second pegmatite outcrop was mapped at the Cherry Prospect.

Further mapping over the Karonie project has delineated a cluster of pegmatites. At the Hickory and Cherry prospects, mapping has doubled the strike length of the mapped pegmatites. At Pecan, the Company has delineated multiple pegmatite outcrops across an area 1 km wide.

Related read: Alchemy Resources (ASX:ALY) shares soar 63% on multiple lithium anomalies at Karonie

Location of pegmatites on Hickory (Image source: Company update, 22 April 2022)

Road Ahead

Alchemy will undertake infill soil sampling to zero in on the zones that are hidden under the thin surface cover. The rock-chip sampling results have showed very high tenor pathfinder anomalism.

Karonie has a significant gold potential. The company has already identified several gold prospects on the project and has undertaken several rounds of drilling over the project area.

The addition of lithium is expected to add considerable value to the project.   

Also read: Why shares of Alchemy Resources (ASX:ALY) have more than doubled so far in 2022?

ALY shares were trading at AU$0.0.015 in the early hours of 27 June 2022, up over 15% from the last closing price.