Alloy commences drilling at Warmblood prospect
THE DRILL SERGEANT: Alloy Resources (ASX:AYR) has commenced an initial 1,500 metre RC drill program at the company’s Horse Well gold project in Western Australia.
The drilling is being undertaken to test a previously identified 250 metre strike length of the Warmblood gold prospect by drilling under earlier shallow air‐core drill intersections of 40 metres at 3.4 grams per tonne gold and 32 metres at 3.9 grams per tonne gold.
Horse Well project location. Source: Company announcement
“We are targeting another discovery in Western Australia like the high-grade Central Bore and Andy Well gold deposits defined in the last couple of years,” Alloy Resources managing director Andy Viner said in the company’s announcement to the Australian Securities Exchange.
“The Horse Well project has all the right signs that high‐grade gold mineralisation is present.
“Existing resources average a grade of 2.91 grams per tonne gold and we know there are high-grade shoots present such as at Filly South West with an indicated resource of 90,000 tonnes at 7.85 grams per tonne gold.
The company said it has scheduled an RC drill program of 1,500 metres to commence this month to test the southern portion of the Warmblood prospect.
Drilling will be on a 40 metre line spacing and 20 metre drill hole spacing to test the mineralised structure over a 250 metre strike length.
Holes will be extended to up to 150 metres depth, testing the structure down dip to define potential high‐grade shoots within the zone.
The northern portion of the interpreted mineralised structure has been cleared for heritage by traditional owners; however clearance to commence drilling in the northern portion is subject to the Department of Indigenous Affairs approval processes.
“We have formed a good working relationship and are implementing processes with the Wiluna traditional owners that will support successful ongoing exploration work in the Warmblood and broader project areas,” Viner said.
Having completed a due diligence review of legal and technical information, Alloy Resources has elected to pay a sign‐on fee of $25,000 and commence a two year Option to Purchase 80 per cent of tenement EL69/2820, which adjoins its Horse Well tenement package.
The Agreement is with Phosphate Australia (ASX:POZ).
Alloy said there has been virtually no exploration for Archaean gold mineralisation within the licence and the company regards this Agreement as a wise transaction to cover prospective geology adjacent to the Crack of Dawn prospect located in this area.