THE BOURSE WHISPERER: Alloy Resources (ASX: AYR) struck an agreement with Jindalee Resources (ASX: JRL), under which the company can acquire an Option to purchase Exploration Licence Application (ELA) 53/1962.
Alloy Resources explained ELA 53/1962 to be located within the highly prospective Millrose Greenstone Belt and adjacent to the company’s Horse Well gold project in Western Australia.
Horse Well and the ELA are located in the north eastern goldfields adjacent to Northern Star Resources’ (ASX: NST) Jundee gold mine.
The projects are located on a major mineralised structure called the Celia Shear which extends down the eastern margin of the Millrose Greenstone Belt and, according to Alloy, is emerging as a highly prospective target for new gold discoveries.
The company said the new ELA surrounds the principal prospect at Millrose, which has an Inferred Mineral Resource of 309,000 ounces of gold.
“We are very pleased to be able to secure this new area at a time when companies in the area are making new discoveries,” Alloy Resources executive chairman Andy Viner said in the company’s announcement to the Australian Securities Exchange.
“We have recently regained control of the Horse Well gold project which we believe is one of the best early stage gold exploration properties in the Goldfields with a shallow high-grade Inferred Mineral Resource of 75,000 ounces at 2.76 grams per tonne gold and numerous prospects at various stages of exploration.
“We think the new ELA area significantly enhances the potential for Alloy to make new gold discoveries as it expands our coverage of the mineralised Celia Shear from 60 to 80 strike kilometres.
“One of our most intriguing targets is the Celia Shear extensions to Overland Resources new high-grade surface quartz vein discovery at Coralie Jean which has only emerged in the last quarter.
“Our understanding of this new discovery is that it opens up new concepts for the location of mineralisation along this shear which we can now apply to the Millrose ELA.
“Another reason for excitement is the location of the ELA only eight kilometres east of Northern Star’s Ramone discovery, which is also showing the untapped potential of this area.”