Alloy commences Horse Well drilling

THE DRILL SERGEANT: Perth-based exploration play Alloy Resources has commenced a 3,500 metre air-core drilling program at its Horse Well project in Western Australia.

The purpose behind the drilling program is to enable the company to test the north of its recent Warmblood discovery on a 100 metre by 50 metre or 25 metre hole spacing.

The drilling is focused on an area where Alloy has interpreted the mineralisation to potentially join with mineralisation at the Filly South West prospect over a 500 metres strike length.

The Filly South West prospect is a high-grade Indicated Resource of 90,400 tonnes at 7.85 grams per tonne gold for 22,800 ounces of gold.

Alloy will also carry out drilling on its Mustang prospect in order to define the geometry and extent of mineralisation over a 400 metre long area.

The company said that it is very optimistic about the potential for further discoveries at both Warmblood and Mustang.

It also holds optimism for the under-explored nature of additional geological trends that lie adjacent to these and other prospects within the Horse Well project area.

The upcoming program of drilling is the first phase of a planned integrated exploration program the company has scheduled leading up to December.

The program includes:

–    A larger air-core drill program of approximately 6,000 metres in November 2011;

–    Initial soil geochemical sampling program covering 10 kilometres strike south of the Warmblood discovery;

–    Ongoing review of all historical exploration data and generation of new targets; and

–    Due diligence review of data from holders of prospective tenements in the region.

“This drilling program will focus on the northern extent of the Warmblood discovery zone and drill targets to the south of the discovery zone at Mustang,” Alloy Resources said in its announcement to the ASX.

“The company has also initiated heritage clearance programs for targeted areas adjacent to Warmblood, and these areas will be drill tested as soon as clearance has been obtained.”