Alliance Resources Identifies Nine New Weednanna Gold Targets

THE DRILL SERGEANT: Alliance Resources (ASX: AGS) carried out a 3DIP survey at the Weednanna gold deposit, which forms part of the Wilcherry Project Joint Venture in South Australia.

The JV is between Alliance (81.41%) and Tyranna Resources (ASX: TYX) (18.59%), with Alliance moving to 100 per cent ownership in mid-March.

Alliance Resources had the Three Dimensional Induced Polarisation (3DIP) surface geophysical survey conducted over the Weednanna gold deposit during October 2018 by DIAS Geophysical and Gap Geophysics using the DIAS32 system, which is the leading acquisition technology in this field, to help target further areas of mineralisation.

Observations to emerge from the survey include:

Gold mineralisation is closely associated with chargeability bodies that exhibit moderate to high chargeability (>~10mV/V);

The chargeable bodies extend deeper than 200 metres below the surface; and

There is a strong correlation between high density (from an April 2018 gravity survey), high chargeability and high gold concentrations at Weednanna.

The results of the 3DIP survey defined nine new target zones based on where the high chargeability zones correlate with high density zones and are near, or along strike from, known high-grade gold shoots Alliance has delineated via drilling.

Five out of nine targets are shallow, which the company believes highlights the remaining near-surface potential to substantially grow the mineral resource.

“The 3DIP survey has produced a chargeability model that closely correlates with underlying geological detail/mapping and known gold mineralisation,” Alliance Resources said in its ASX announcement.

“Many of the targets appear to correlate with the margins of the known gold shoots and some have clear structural control observed in aeromagnetic and gravity datasets.

“The highly chargeable zones also correlate well with high density zones identified by a detailed 3D gravity inversion model generated in 2018.

“The 3D inversion model suggests there is clear potential for further discoveries at deeper levels than have been currently tested.

“The NW trend with multiple chargeable centres is bounded by a NW-SE trending fault; this is also known to host gold but has not been thoroughly drill tested to date.”

Alliance indicated ongoing RC drilling programs are planned for late March to continue to grow the size of the Weednanna gold deposit by stepping out from existing gold shoots.

It will analyse the 3DIP survey results further in conjunction with the most recent drilling results and existing geophysical datasets to rank targets and plan drill holes for testing in CY2019.