Alchemy Resources (ASX: ALY) reported this morning its joint venture partner Sandfire Resources (ASX: SFR) had uncovered gold and copper intercepts from a phase one drilling program across the Bryah Basin joint venture, with results indicating potential DeGrussa-style mineralisation.
The intercepts were made during air core drilling along strike of Sandfire’s DeGrussa operation.
A total of 828 air core holes were drilled across 40km of strike over the Narracoota-Karalundi volcano-sedimentary sequence.
Highlight gold results were 5m at 2 grams per tonne gold from 65m, 5m at 1.2g/t gold from 45m, and 5m at 1.1g/t gold from 65m.
Better copper intercepts were 20m at 0.11% copper from 85m and 15m at 0.10% copper from 30m.
Zinc was also unearthed with a 10m interval grading 0.27% zinc from 75m.
“We’re encouraged by the gold intercepts from the recent Sandfire air core drilling and look forward to infill air core and follow-up reverse circulation drilling in the near future,” Alchemy managing director Leigh Ryan said.
“The program has provided some excellent geological information on the DeGrussa host rocks and it is anticipated that completion of the moving loop electromagnetic survey in the eastern end of the project area and integration with phase one geological and geochemical information will generate additional VMS targets for drill testing,” he added.
Bryah Basin joint venture
Sandfire earned a 70% stake in the Bryah Basin project mid-last year after spending $6 million on exploration – reducing Alchemy’s previous 80% ownership to 10%, with Fe Ltd (ASX: FEL) retaining the remaining 20% interest.
The miner has also secured an 80% holding in Alchemy’s wholly-owned tenements that make up part of the project.
As a result, Alchemy is free-carried to completion of a pre-feasibility study. If a definitive feasibility study is deemed appropriate, then Alchemy will be carried on an interest free deferred basis for $5 million-worth of study expenditure.
Alchemy will repay the loan from 50% of its production profits.
By mid-afternoon, Alchemy’s share price was steady at $0.011, while Fe Ltd’s shares were up 7.7% to $0.014.
Sandfire’s shares had slipped almost 4% to $5.445.