Alloy Resources (ASX: AYR) has revealed a 300% increase to gold resources at its 51%-owned Horse Well joint venture in Western Australia’s north-east goldfields, with the project adjacent to Northern Star’s (ASX: NST) Jundee gold operation.
The resource increase was based on exploration at the Warmblood and Dusk til Dawn prospects, which added 162,800 ounces of contained gold to boost the project’s overall inventory to 237,800oz of the precious metal.
In addition to Warmblood and Dusk til Dawn, the global resource includes the existing Palomino, Filly SW and Filly deposits which have a combined resource of 846,000t at 2.76 grams per tonne gold for 75,100oz gold.
Alone, Warmblood totalled 788,000t at 2.1g/t gold for 53,900oz gold, while Dusk til Dawn had a lower grade resource of 3.495Mt at 1g/t gold for 108,900oz.
Commenting on the results, Alloy Resources executive chairman Andy Viner said the company was “excited” by the shallow and higher-grade gold mineralisation found across Warmblood, Filly SW and Palomino.
“Our goal now is to continue growing these resources at depth and along strike, and also go back to the historical resource areas and improve our understanding with a view to increasing these as well,” he said.
Alloy Resources is currently sole funding exploration at Horse Well to secure a 60% interest, with Silver Lake Resources (ASX: SLR) to retain the remaining stake in the project.
Horse Well hosts numerous targets along WA’s greenstone belt.
Current work at the project will include geological modelling at Warmblood and reviewing other advanced prospects for potential drilling.
Alloy Resources also plans to analyse geochemical data for the Big Daddy prospect to detect near surface trends and define a soil sampling program.
Preliminary metallurgical work on samples from Dusk til Dawn and Warmblood has confirmed the gold is “highly likely” to be extracted via conventional milling and carbon-in-pulp processing.
Alloy Resources’ share price rocketed 50% to reach $0.003 by late morning.