THE DRILL SERGEANT: Alliance Resources (ASX: AGS) spruiked the regional gold potential surrounding the company’s Wilcherry project area in South Australia, which forms part of the joint venture (JV) between Alliance (71.09%) and Tyranna Resources (ASX: TYX) (28.91%).
Alliance Resources explained that since the formation of the JV, its primary focus has been to assess the potential of the high-grade Weednanna gold prospect for economic development.
The company has since advanced with this work and plans to establish a maiden mineral resource estimate in the first half of this year.
Alliance has improved its understanding of the gold skarn mineralisation model at Weednanna with two significant advances:
(1) The recognition of discrete high-grade gold shoots; and
(2) The location of gold shoots in both Paleo-Proterozoic meta-sediments and Archaean granite-gneiss.
Of note, the company has identified that previous exploration did not use appropriate drill hole spacing for the discrete high-grade gold shoots and largely ignored the opportunities in the Archaean granite-gneiss.
Alliance has commenced a review of the regional gold prospectivity to identify prospects with potential for gold mineralisation within five kilometres of Weednanna.
Preliminary compilation of the historic geochemical and drilling databases indicates gold exists at the Mawson, Ultima Dam South and Weednanna North prospects, with anomalous gold at the Ultima Dam and Ultima Dam North prospects.
“Now that our flagship Weednanna gold prospect is advancing towards a maiden mineral resource estimate, we have turned our attention to the regional gold potential proximal to the prospect,” Alliance Resources managing director Steve Johnston said in the company’s announcement to the Australian Securities Exchange.
“It is emphasised that the exploration potential at Weednanna itself remains very high, however, the high-grade gold intercepts at Mawson and Ultima Dam South, both within a short trucking distance to Weednanna, are also very exciting.”