Alchemy Resources shares soar on gold find in Western Australia
Investors liked what they heard about the two new high-grade gold zones discovered by Alchemy Resources Ltd (ASX: ALY) at its Hermes Gold Project, part of the Three Rivers Gold Project.
Alchemy shares rocketed 133%, with the timbre of the discovery not dissimilar to Barrick's Plutonic Gold Mine.
Reverse circulation (RC) drilling by Alchemy discovered high grade gold zones at shallow depth west of the known Hawkeye and Trapper deposits, whilst another high grade gold zone was discovered at depth at the Trapper deposit. These are part of Three Rivers Project in the Gascoyne district of Western Australia.
One RC hole TRC236 drilled to test gold mineralisation to the west of the known JORC-compliant 1.7Mt indicated gold resource, intersected three zones of gold mineralisation. Best results include;
- 8m @ 2.0 g/t Au from 21m (including 1m @ 5.6 g/t Au); - 5m @ 34.0 g/t Au from 34m (including 1m @ 118.2 g/t Au & 1m @ 16.1 g/t Au); and - 7m @ 5.5 g/t Au from 113m (including 1m @ 15.4 g/t Au).
RC hole TRC247 drilled into the Trapper deposit intersected 8m @ 10.3 g/t Au from 156m including 1m @ 64.9 g/t Au.
This is Alchemy's first drilling program at the Hermes Gold Project and it has already discovered two new high-grade gold zones and highlighted the potential for further high-grade mineralisation outside the current extent of the Hawkeye and Trapper deposits. The type of high-grade mineralisation at the Hermes Gold Project bears similarities to the mineralisation at Barrick Gold Corporation’s Plutonic Gold Mine.
The Hermes Gold Project includes the existing JORC-compliant, open pittable, indicated resource of 1.7Mt @ 2.4g/t gold, equating to 131,000 ounces of contained gold. The drilling results will provide Alchemy with the impetus to accelerate development of the known deposits and incorporate the recent drilling data into a re-estimation of the JORC-compliant indicated resource.
Alchemy Managing Director, Michael Hannington said that Alchemy had only commenced drilling at the Hermes Gold Project on 6 May 2009 and has managed to drill and report results in just over a month. "These results validate our decision to acquire, and our ambition to fast-track the development of, the Hermes Gold Project”.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)