Alloy Resources claims new Crack of Dawn gold discovery

THE DRILL SERGEANT: The completion of a 42 hole air-core drill program has led Alloy Resources (ASX: AYR) to claim a new greenfileds gold discovery.

The drilling was carried out on the Crack of Dawn and Dusk til Dawn prospects at the company’s Horse Well project in Western Australia during mid-December 2012.

The program tested two drill anomalies that had originally been defined by Eagle Mining in the mid-1990’s.

The historical results included an intersection of 11 metres at 3.45 grams per tonne gold from 44 to 55 metres depth at the end of hole, yet had never been followed up.

Alloy said its drill program has confirmed the discovery of a large gold mineralised system.

“This discovery of a large greenfields gold mineralisation system is very exciting,” Alloy Resources managing director Andy Viner said in the company’s announcement to the Australian Securities Exchange.

“Whilst grades at this stage are anomalous rather than economic, we are drilling beneath spinifex covered sand plain and there appears to be strong leaching of the gold down to the limit of air-core drilling.

“In effect we are skipping over the top of a large alteration system and getting a small sample at the bottom of holes.

“So to get these results is very encouraging.”

 

Crack of Dawn prospect regional geology with drilling and alteration zones. Source: Company announcement

 

At the Crack of Dawn prospect drilling intersected what Alloy has interpreted to be a 250 metre long and 30 metre wide, open-ended mineralised alteration zone traversing the location of the historical drill hole.

The recent drilling encountered intersections of:

–    12 metres at 0.6 grams per tonne gold from 56 to 68 metres (end of hole); and

–    11.5m at 1.60g/t gold from 52 to 65.5m (end of hole).

Alloy explained that historical vertical air-core drilling at the Dusk til Dawn prospect returned some anomalous intersections in the area of the contact between a granite and metasediments.

The company conducted north-south and east-west lines of angled air-core drilling at 80m spacing in this area, which it said has defined two zones of sheared and altered granite and metasediments, up to 1 kilometre long and 200 metres wide.

Alloy did point out, however, that the recent drilling was still quite widely spaced.

Despite this it indicated there are indications mineralisation is leached to the base of weathering.

The company considers it is likely that gold mineralisation intersected by drilling has not adequately tested these zones.

One intersection that did pique the interest of the company returned:

–    12m at 1.11g/t gold from 28 to 36m.

Alloy said it is now reviewing the results in a geological context.

The company anticipates its next stage of exploration will require a geophysical survey method to define alteration zones and targets for deeper drilling.