Alliance Resources Encouraged by Preliminary Gundockerta South Aircore

THE DRILL SERGEANT: Alliance Resources (ASX: AGS) received preliminary gold results from aircore drilling at the company’s Gundockerta South project, located 72 kilometres east of Kalgoorlie in Western Australia.

Alliance Resources completed a 66 hole aircore drilling program over the northern part of the target zone at the Gundockerta South project, which it considers prospective for greenstone-hosted orogenic gold deposits.

A total of 3,007 metres was drilled to test for low-level gold in regolith beneath a large zone of sporadic gold in soil anomalism.

Alliance said all holes were drilled vertically on a 160 metre by 640 metre spaced grid and the average depth of drilling was 46m.

Preliminary gold assays based on 4m composite scoop samples have been received for all holes, with two holes returning anomalous results, as follows:

4 metres at 0.15 grams per tonne gold from 0m; and

4m at 0.31g/t gold from 8m.

Alliance explained GSA016 is associated with transported cover and siliceous duricrust over strongly carbonate altered mafic and GSA062 is associated with upper saprolite over deeply weathered mafic saprock.

“These results definitely warrant follow up,” Alliance Resources managing director Steve Johnston said in the company’s announcement to the Australian Securities Exchange.

“The drilling grid is very wide spaced and both intercepts are open in at least one direction.”

The company outlined work for the coming financial year to include confirming the intercepts by submitting the one-metre samples for assay and conducting the next phase of aircore drilling over the southern part of the target zone and infill drilling of these anomalous results.