Alloy Resources (ASX: AYR) has pegged out 114 square kilometres of new ground adjacent to Echo Resources’ 335,000 ounce Julius gold resource and 25km south of the Millrose greenstone belt ground Alloy optioned from Jindalee Resources last month.
Perth-based Alloy today debuted its new Bronzewing North prospect to investors, revealing it had applied for eight exploration licences and 16 prospecting licences at the goldfields site.
The project is north of Bronzewing and south-east-east of Wiluna and has undergone limited exploration.
The new ground is south of Alloy’s existing Horse Well gold joint venture and Alloy executive chairman Andy Viner said Bronzewing North “enhances” the company’s potential to make new discoveries with additional land over “prospective geology”.
Alloy flagged the project’s proximity to the Julius resource and 303,000oz Northern Star Resources (ASX: NST) ground.
Mr Viner added the company was pleased to secure the area at a time when companies in the region were making new discoveries.
“New geological models resulting from recent discoveries by our neighbours are going to be applied throughout this region and we want to be a strong player in the re-emergence of this mineral field by securing prospective ground where we can.”
Upcoming exploration programs
Alloy has planned drilling and surface geochemical surveys at the Horse Well which is 85km from Wiluna, and aircore drilling at Alloy’s Ophara cobalt prospect in Broken Hill, New South Wales.
After recently regaining control of the Horse Well joint venture, Mr Viner said the company believed the project was “one of the best one of the best early stage gold exploration properties in the goldfields with numerous prospects at various stages of exploration”.
Alloy Resources completed a A$1.15 million capital raising on Friday, issuing 143.75 million additional shares at A$0.008 a pop.
Mr Viner said the capital raising would provide working capital and fund the upcoming exploration programs.
Following its share placement last week, Alloy’s market capitalisation was sitting at $11.76 million by late morning, with 1,307,584,758 shares on issue and 29 million unlisted options.
Alloy Resources shares tracked up 5.56% to A$0.01 by late morning.