Alliance Resources Ready to Move at Weednanna

Alliance Resources (ASX: AGS) wasted little time in letting the market know of its intentions for 2018.

Alliance Resources had hardly placed the New Year’s Eve champagne bottles in the recycling bin when it announced results from the third round of reverse circulation (RC) drilling at its flagship Weednanna gold prospect late in 2017.

The Weednanna gold prospect has a strike length of 1.3 kilometres, along which Alliance has identified exceptionally high-grade zones that are open in at least one direction.

The company has taken a systematic approach to Weednanna, including a review of past exploration results, which initially saw it focus on three high-grade areas – Targets 1, 2 and 3 with the aim of drilling for sufficient detail to enable a mineral resource estimate to be established.

Early results across Targets 1, 2 and 3 produced bonanza gold grades of:

49 metres at 6.3 grams per tonne gold from 45m, including 21m at 10.7g/t gold from 48m;

14m at 36.1g/t gold from 118m, including 5m at 95.6g/t gold from 120m;

16m at 7.7g/t gold from 81m, including 8m at 12.9g/t gold from 88m; and

60m at 5.6g/t gold from 47m, including 9m at 15.6g/t gold from 63m and 8m at 13.4g/t gold from 99m.

Buoyed by these results, Alliance widened its scope to include drilling at Target 4, which confirmed it as a new high-grade gold zone within the project complex.

The entire program saw a total of 21 RC holes (17WDRC050-70) drilled, 15 of which returned intercepts of greater than one gram per tonne gold, with four holes returning greater than 50g/t-metres gold.

The most recent results to be announced included:

17WDRC051
35 metres at 3.65 grams per tonne gold from 43m (Target 1), including 9m at 8.91g/t gold from 44m;

17WDRC057
6m at 13.63g/t gold from 59m (Target 2), including 3m at 26.6g/t gold from 62m;

17WDRC067
15m at 18.21g/t gold from 107m (Target 4), including 7m at 35.94g/t gold from 109m; and

17WDRC070
3m at 25.45g/t gold from 81m (Target 4), including 1m at 74.2g/t gold from 81m.

“In February we will be launching a fourth drilling program at Weednanna,” Alliance Resources managing director Steven Johnston told The Resources Roadhouse.

“Weednanna has assumed the greatest importance for us, especially since our drilling programs have continued to define these discrete, but high-grade, shoots.

“We have drilled the first three targets out to a spacing that makes a good case for launching into a Mineral Resource.

“We have one more program to conduct there, which will be carried out on Target 4, to bring it up to the same drilling pattern and then we’ll commence 3D modelling and a mineral resource estimate on those high-grade target areas.”

The Weednanna gold prospect forms part of the Wilcherry Project Joint Venture in the Gawler Craton of South Australia between Alliance (67.35%) and Tyranna Resources (ASX: TYX) (32.65%).

In September 2016, Alliance acquired a 51 per cent interest in the Wilcherry project for a moderate outlay of $2 million.

The deal placed Alliance in the position as the JV leader of an advanced project in the mineral-rich Gawler Craton that has, to date, been the subject of about $55 million in past exploration.

“We have been increasing our equity in the JV as a result of Tyranna Resources electing not to contribute to the fiscal year budget from 1 July 2017,” Johnston explained.

“By the end of the December 2017 Quarter we had increased our equity to 67.35 per cent, which will continue to increase in line with each quarterly expenditure.

“We believe the original decision we took to get involved with the project has paid off.

“We are achieving some great gold results and I am increasingly confident that Weednanna will be a mine one day and hopefully that will be sooner than later.”

Those hopes were boosted with positive results received from recent preliminary metallurgical testing of high-grade gold samples from Targets 1 and 3 at the Weednanna gold prospect.

The results demonstrated that at a grind size of P80 75 microns, cyanide bottle roll gold extraction over a 24 hour period was 89.4 per cent for WDMET001 and 92.8 per cent for WDMET003.

Using a finer grind size of P80 38 microns incrementally increased gold extraction for WDMET001 to 90.8 per cent and WDMET002 to 95.5 per cent.

“The positive results from the test work ticked an important box in the path to production,” Johnston said.

“That being the gold mineralisation is amenable to conventional grinding and cyanide recovery techniques.”

With Weednanna progressing to a satisfactory beat, Alliance is also looking to progress its Nepean South gold project, located 26 kilometres southwest of Coolgardie in Western Australia.

Alliance considers Nepean South to be prospective for both komatiitic-hosted nickel sulphide deposits and greenstone-hosted orogenic gold deposits.

Results from a final phase of infill auger soil sampling completed in the north-eastern part of the project area confirmed gold anomalism the company had previously indicated by wider-spaced sampling.

Subsequent results from all phases of soil sampling defined two coherent anomalies greater than 7.5ppb gold and totalling 2.1 square kilometres in area.

The company completed a 90-hole aircore drilling program in January, the first phase of which is designed to test for low-level gold in regolith (weathered Archaean rock) anomalism beneath gold in soil sampling anomalism.

Alliance believes results from this program could indicate vectors towards a primary gold deposit.

“We’ve currently awaiting the assays from Nepean South, which is something that I’m very excited about – not to take anything away from Wilcherry – but I certainly hope that Nepean will produce something of interest,” Johnston said.

“At Nepean we have a couple of large soil anomalies, the bulk of which have never been drilled before.

“The Nepean project is an increasingly interesting area that is located just four kilometres to the southwest of the Nepean nickel mine.

“Initially we picked the ground up looking for nickel, but through the exploration work we have carried out we have outlined gold anomalism there.

“It’s proximity to Coolgardie means it is located close to several gold processing plants, any of which could possibly take the mill feed should we prove up an economic discovery.”

Alliance is also continuing to work up regional targets within the Wilcherry JV area from the 26 conductive targets that were identified by a Heli-EM survey carried out in 2016 that may be prospective for massive sulphides, including copper, tin, zinc, lead and silver.

“The ground EM crew is continuing to work on identifying the next targets from that data.

“We are still conducting regional exploration for base metals and we only need to unlock one of those targets to be a game changer.

“After we’ve completed the drilling at Weednanna we’ll move the RC rig onto the next batch of regional targets.”

 

 

Alliance Resources Limited (ASX: AGS)
…The Short Story

HEAD OFFICE
Suite 3
51 – 55 City Road
Southbank, VIC, 3006

Ph: +61 3 9697 9090

Email: info@allianceresources.com.au
Web: www.allianceresources.com.au

DIRECTORS
Ian Gandel, Tony Lethlean, Steve Johnston