Alloy confirms gold targets at Horse Well

THE DRILL SERGEANT: ASX-listed gold junior Alloy Resources has received gold assay results from a recently completed drilling program holes at its Horse Well gold project in the Yandal Greenstone Belt of Western Australia.

The program of just over 100 vertical air core drill holes returned a set of assays that highlighted a new gold discovery called the Warmblood prospect was made adjacent to existing gold deposits.

The air core drilling program also followed up anomalous gold intersections from previous drilling at the Mustang prospect, in other gold trends, and near the main gold deposits where there is a combined resource inventory of 1.05 million tonnes at 2.91 grams per tonne gold for 98,700 ounces.

The objective of the recent drilling campaign was to enable the company to expand these gold resources through the discovery of new deposits and extensions to known mineralisation.

The best results received at Mustang occurred along a single transect 50 metres to the south of previous anomalous drill results.

Results from two vertical holes spaced 50m apart along this transect included:

– 12 metres at 1.6 g/t gold from 48 metres, including 4 metres at 4.5 g/t gold from 56 metres, and

– 8 metres at 0.44 g/t gold from 32 metres.

“These holes show that the gold mineralisation increases to the south and is open to the east by at least 200 metres and to the south by over 400 metres,” Alloy Resources said in its announcement to the Australian Securities Exchange.

“There are also another twenty-seven broadly spaced reconnaissance drillholes that returned assays of 0.1 grams per tonne gold or more that require infill drilling to a closer spacing.”

Alloy said it was encouraged by these gold assay results at the Warmblood and Mustang prospects as it considers both to indicate strong potential for new gold resources.

The company intends carrying out follow up air core drilling at the Warmblood and Mustang prospects as well as at other newly identified gold anomalies.

Alloy is also reassessing historical exploration activities with a view to implementing a cohesive program of new target generation involving geological mapping, surface geochemical sampling and regional geochemical drilling over the next six months.

The priority target for this reassessment will be the previously-poorly tested 10km southern strike extensions of the Warmblood geological trend.