Alchemy Resources Limited (ASX: ALY) has revealed a maiden Mineral Resource Estimate (MRE) for the Overflow deposit at the 80% owned Lachlan Project, located in New South Wales.
The maiden Mineral Resource Estimate of 342,300 gold equivalent (AuEq) ounces of gold at Overflow establishes a solid base for growth in the centre of our 80% owned Lachlan Projects,” Chief Executive Officer, James Wilson, said.
“Importantly this is a high quality, independently conducted resource estimate which remains open at depth and along strike. The current resource footprint covers only a small portion of the prospective stratigraphy and sits near a number of existing operations. We believe there is a lot of potential for future growth, both along strike and at depth.
“Moving forward, our strategy is to conduct exploration to expand our resource inventory, commencing at Overflow North which has seen almost no modern exploration. We are also planning work to target the depth and down plunge extensions of the existing resource. The area has a lot of potential for high grade mineralisation close to surface with many targets having not been followed up in nearly 20 years.”
Based on the estimate provided by consultant Auranmore using a 0.7 g/t AuEq cut-off grade, Overflow contains 8.189 Mt at 1.30 g/t AuEq for 342koz AuEq.
The MRE is a culmination of over 12 months work by Alchemy including:
- Review, verification and interpretation of historical data,
- Validation of datasets,
- Integration of historical datasets which had previously never been digitise; and Development of a new geological model.
Alchemy believes there is substantial potential to expand the current JORC MRE through additional drilling, as the deposit remains open along strike and at depth. Alchemy’s Overflow tenements cover prospective structures and host rocks which extend approximately 30km to the north and 40km to the south of the MRE and remain poorly tested by modern exploration methods.
Mineralisation is interpreted to be a multigenerational reactivated fault zone that has developed on a stratigraphic unconformity between the Babinda Volcanics and Ordovician Girilambone Group.
The late cross structures are believed to reactivate mineralisation, upgrading the metal content. There are several cross structures regionally that remain untested. “Regional Target 1” is a completely untested intersection between the Overflow Shear and an East-West structure. At “Regional Target 2” multiple interpreted cross structures intersect both the Overflow Shear and the Overflow Splay.
Results from drilling at “Regional Target 2” conducted in 1978 by Aberfolye included 19m @ 0.33% Pb from 19m in BOBP2, and 0.28m @ 5.1% Cu from 106.51, and 0.7m @ 6.8% Cu and 1.2% Pb from 149.41m in BO1A.
