Alloy Resources’ punt on Horse Wells returns up to 18.15g/t gold

Alloy Resources ASX AYR Horse Wells gold Doray Minerals

Alloy Resources (ASX: AYR) has pulled up to 18.15 grams per tonne gold from drilling at its 51% owned Horse Well gold project in Western Australia.

The reverse circulation drilling program comprised 14 holes for 1,877m at the Warmblood, Filly SW and Dusk til Dawn prospects.

Better results, including the 1m at 18.15g/t gold interval from the Filly SW prospect, were 14m at 8.38g/t gold, with a 4m interval comprising 20.08g/t gold; and 15m at 5.34g/t gold, with a 7m interval grading 10.25g/t gold.

About 1km of strike along Warmblood and Filly SW remains open to the north, south and at depth.

“The results at Warmblood and Filly SW confirm that the Horse Well joint venture area has potential for high-grade gold mineralisation, and that this can occur over extensive strike lengths,” Alloy executive chairman Andy Viner said.

“Our interpretation suggests the mineralisation style can be narrow and in ‘poddy’ very high-grade shoots related to the Celia shear system and needs tight targeted drilling,” he noted.

Mr Viner added the Celia shear hosted numerous prospects generated from soil and drill anomalies that the region had “significant” exploration potential over 60km of strike.

Once Alloy receives the final results from its geochemical sampling program, it will plan “extensive” first pass and second pass drilling campaigns over the new targets.

The company anticipates some of these targets will include anomalies at Northern Dawn, extensions to Filly SW and Warmblood, as well as Coralie Jean anomalies and along 10km of strike across the Celia shear.

Horse Well joint venture

Alloy regained its majority stake in the Horse Well joint venture in January this year after handing over A$300,000 cash and a further 32.26 million shares.

The company can boost this to 60% through ongoing exploration funding, with the joint venture spending A$7.9 million on the project in the last five years.

Horse Well hosts a shallow inferred mineral resource of 75,000 ounces of contained gold at an average grade of 2.76g/t.

Doray Minerals (ASX: DRM) owns the other 49% of the joint venture tenements and retains a claw-back right if the duo defines up to 1.5 million ounces in contained gold.

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