Alchemy Resources Lays Karonie Foundation with Maiden Resource Estimation

THE DRILL SERGEANT: Alchemy Resources (ASX: ALY) reported the maiden JORC 2012 Mineral Resource Estimate for the Taupo, KZ5 and Parmelia deposits at the company’s 100 per cent-owned Karonie gold project, located east of Kalgoorlie in Western Australia.

The deposit combination has been estimated for Karonie to currently contain 2.96 million tonnes at 1.2 grams per tonne gold for 111,100 ounces of gold.

“The maiden JORC 2012 Mineral Resource Estimate of 111,100 ounces of gold at Karonie establishes a solid base for growth in the centre of our 100 per cent-owned Karonie Gold Project,” Alchemy Resources chief executive officer James Wilson said in the company’s ASX announcement.

“Importantly this is a high quality, independently conducted resource estimate which is largely contained within the top 150 metres and remains open at depth and along strike at all three deposits.

“The current resource footprint covers less than two kilometres combined of the +85km strike length of the Karonie tenement package, which has active mining operations along the length of the same highly prospective structures.

“That leaves a lot of real estate along strike and at depth for future growth.

“Moving forward from the central resource, our strategy is to expand on the resource inventory by heading initially to the southern Karonie areas for our Phase 2 drill program, and then to the north towards Manhattan for Phase 3.

“We will also be targeting high grade gold resources in the far south areas at Karonie where data mining of historical drilling assays has revealed strong potential for high grades close to surface which have not been followed up in nearly 20 years.”