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Alliance Resources Identifies Nine New Weednanna Gold Targets

THE DRILL SERGEANT: Alliance Resources (ASX: AGS) carried out a 3DIP survey at the Weednanna gold deposit, which forms part of the Wilcherry Project Joint Venture in South Australia.

The JV is between Alliance (81.41%) and Tyranna Resources (ASX: TYX) (18.59%), with Alliance moving to 100 per cent ownership in mid-March.

Alliance Resources had the Three Dimensional Induced Polarisation (3DIP) surface geophysical survey conducted over the Weednanna gold deposit during October 2018 by DIAS Geophysical and Gap Geophysics using the DIAS32 system, which is the leading acquisition technology in this field, to help target further areas of mineralisation.

Observations to emerge from the survey include:

Gold mineralisation is closely associated with chargeability bodies that exhibit moderate to high chargeability (>~10mV/V);

The chargeable bodies extend deeper than 200 metres below the surface; and

There is a strong correlation between high density (from an April 2018 gravity survey), high chargeability and high gold concentrations at Weednanna.

The results of the 3DIP survey defined nine new target zones based on where the high chargeability zones correlate with high density zones and are near, or along strike from, known high-grade gold shoots Alliance has delineated via drilling.

Five out of nine targets are shallow, which the company believes highlights the remaining near-surface potential to substantially grow the mineral resource.

“The 3DIP survey has produced a chargeability model that closely correlates with underlying geological detail/mapping and known gold mineralisation,” Alliance Resources said in its ASX announcement.

“Many of the targets appear to correlate with the margins of the known gold shoots and some have clear structural control observed in aeromagnetic and gravity datasets.

“The highly chargeable zones also correlate well with high density zones identified by a detailed 3D gravity inversion model generated in 2018.

“The 3D inversion model suggests there is clear potential for further discoveries at deeper levels than have been currently tested.

“The NW trend with multiple chargeable centres is bounded by a NW-SE trending fault; this is also known to host gold but has not been thoroughly drill tested to date.”

Alliance indicated ongoing RC drilling programs are planned for late March to continue to grow the size of the Weednanna gold deposit by stepping out from existing gold shoots.

It will analyse the 3DIP survey results further in conjunction with the most recent drilling results and existing geophysical datasets to rank targets and plan drill holes for testing in CY2019.

 

Email: info@allianceresources.com.au

Website: www.allianceresources.com.au

 

Alliance Resources Grows Weednanna Outside Mineral Resource Model

THE DRILL SERGEANT: Alliance Resources (ASX: AGS) announced results from a round of reverse circulation (RC) drilling carried out in December last year at the Weednanna gold deposit, which forms part of the Wilcherry project in South Australia.

Alliance Resources drilled 17 RC holes at the Weednanna deposit to test for extensions of gold mineralisation in the southern area of the deposit at Shoots 4, 5, 5E, 10, and 11.

The company said the results from this drilling program continued to grow the size of the Weednanna deposit outside of the maiden Mineral Resource model.

Shoots 4 and 5E continued to extend to the south with intersections of:

18WDRC053
8 metres at 5.3 grams per tonne gold from 75m, including 2m at 16.2g/t gold from 76m (Shoot 5E); and

18WDRC054
3m at 12.1g/t gold from 133m (Shoot 4).

Hole 18WDRC066 returned the first high-grade gold intersection from Shoot 11 of 2m at 16.1g/t gold from 126m.

Alliance believes a drill intersection of 6m at 12.7g/t gold encountered from 1m in hole 18WDRC051 may present a new near-surface extension of Shoot 4 or a possible new gold shoot.

“The validity of this intersection is however uncertain as these were the first metres drilled in the program and might be contamination,” the company said in its ASX announcement.

“A twin hole was drilled during February to determine the source of the gold.”

In 2018, Alliance announced a maiden Mineral Resources estimate for the Weednanna gold deposit of 1.097 million tonnes at 5.1g/t gold for 181,000 ounces of gold.

“The results of the December 2018 drilling program have returned significant results that extend Shoots 4, 5E, and 11 outside of the 2018 MRE model and remain open along strike or at depth,” Alliance said.

The Wilcherry project is a Joint Venture between Alliance (81.41%) and Tyranna Resources (ASX: TYX) (18.59%), with Alliance set to rake 100 per cent ownership in mid-March.

 

Email: info@allianceresources.com.au

Website: www.allianceresources.com.au

 

Alliance Resources Takes Full Ownership at Wilcherry

THE INSIDE STORY: Alliance Resources (ASX: AGS) has become 100 per cent owner of the Wilcherry project, located within the southern part of the Gawler Craton in the northern Eyre Peninsula of South Australia.

Alliance Resources has been the senior partner in the Wilcherry JV for some time and has now purchased the remaining 18.59 per cent of the project for $1.5 million from the subsidiary company of partner Tyranna Resources (ASX: TYX).

Finalising ownership means Alliance now owns 100 per cent of the high-grade Weednanna gold deposit where a mining and processing scoping study is in progress.

The deal also delivers an 80-person camp on leasehold land located just 45 kilometres from the proposed mine site, in the township of Kimba.

Importantly, it also eliminates the administrative burden and costs associated with operating a joint venture and will streamline the future statutory approvals required at the time Alliance submits a Mining Lease Proposal in respect of the Weednanna gold deposit.

“Buying the remaining interest now, rather than later, is a logical move for Alliance,” Alliance Resources managing director Steve Johnston told The Resources Roadhouse:

“The majority party must buy-out the minority party’s interest in the project when the latter’s interest falls to 10 per cent or less as outlined in our ASX announcement dated 23 September 2016.

“By the time Alliance earns 90 per cent in the project, 18 to 24 months from now, the enterprise value of the project may be much higher than it is now, especially as we move towards production.”

In September 2018, Alliance announced a maiden Mineral Resource estimate for the Weednanna deposit of 1.097 million tonnes at 5.1 grams per tonne gold for 181,000 ounces of gold.

Approximately 45 per cent of the Mineral Resource has been classified as Indicated and 55 per cent classified as Inferred.

The Indicated classification corresponds with areas of higher drilling density and the Inferred classification with areas of lower drilling density.

From this, the company has concluded that the Inferred Mineral Resource reflects both modelled gold shoots with limited drilling and a decrease in the density of drilling with depth.

In addition, zones within the top 100 metres of the Mineral Resource area lack drilling, which Alliance believes to have potential for the discovery of new gold shoots based on historical drilling.

The company explained that the reported Mineral Resource comprises that proportion of gold contained within $2,000 pit shells of greater than 0.5g/t gold and greater than 2g/t gold underground potential.

This signals potential to increase the size of the Mineral Resource with further drilling as all 13 modelled gold shoots are open at in at least one direction.

Eighty-three per cent of the Mineral Resource occurs within 120 metres of surface (1,253 ounces per vertical metre) and is readily accessible using open pit or underground mining techniques.

News of the Joint Venture buyout came on the heels of some encouraging exploration activity at and around the Weednanna project as part of Alliance’s strategy to identify the potential for additional gold mineralisation within five kilometres of Weednanna.

The first was an announcement of gold results Alliance had derived from the re-analysis of historic iron ore drill samples at the Weednanna North prospect.

The Weednanna North prospect was originally explored by Ironclad Mining between 2008 and 2012 for economic concentrations of iron ore, drilling 12 diamond holes, for 761.4 metres and 127 RC holes, for 12,786 metres.

During 2018, Alliance Resources had all historic RC and diamond holes from the Weednanna North prospect systematically relogged for cross-sectional interpretation and 3D geological modelling, resulting in the identification of gold mineralisation at the prospect.

Eleven holes returned above two grams per tonne-metre (grade by thickness), including a best result of:

10WNRC027
22 metres at 0.34g/t gold from 42m in, including 2m at 1.12g/t gold from 42m.

“The broad gold-anomalous intersections we have identified at Weednanna North are similar to what we have previously observed adjacent to the high-grade gold shoots at the Weednanna gold deposit,” Johnston said.

Geologically speaking, the Weednanna North prospect consists of a northwest striking zone of calc-silicate and magnetite skarn altered Paleo-Proterozoic Hutchinson Group metasediments that are bounded by Archaean Sleaford Complex granite and gneiss.

The geology is very similar to the Weednanna Gold Deposit and there appears to be similar structural positions to those that host gold at Weednanna.

Due to the iron ore-based exploration activities of the previous owner, the Weednanna North Prospect has not previously been drilled to target favourable structural positions that may host high-grade gold.

Alliance has interpreted the gold assay results from its re-analysis to confirm the gold prospectivity of the area and indicate that the Weednanna North prospect is a priority gold exploration target that warrants further drill testing.

Next up was results from aircore drilling Alliance had conducted for gold at the Weednanna East prospect.

A program consisting eighty-five aircore drillholes was completed for 3,101 metres as a first pass test to extend known gold in regolith anomalism at Weednanna East.

This drilling program involved drilling of four lines of 50m by 200m spaced holes designed to test around the existing gold in soil and regolith anomalism and extend coverage to the west of existing RAB drilling at Weednanna East to cover a series of northwest striking faults.

The company received one metre scoop assay results with four of the holes returning greater than 100ppb gold with a best result of:

18WDAC078
2m at 1.31g/t gold from 49m.

The drilling demonstrated a zone of discontinuous gold anomalism of greater than 100ppb gold extends over 1,000m and remains open in the north.

From what Alliance has seen to date, it has determined the majority of the gold anomalism to have a northeast trend that is located towards the end of hole, near a saprolite/saprock boundary.

Given the iron-poor felsic nature of these host rocks, this is where the company expects the gold in regolith anomalism to concentrate.

Alliance considers the magnitude and distribution of gold in the regolith may be indicative of primary gold mineralisation and further drilling is warranted to better define the gold in regolith anomalies before bedrock drill testing.

“Weednanna East is the first regional gold exploration target to be tested proximal to the Weednanna gold deposit,” Johnston explained.

“We are very encouraged by these aircore drilling results which indicate to us the prospectivity of the district.”

 

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

 

Alliance Resources Strikes First Weednanna Blow for 2019

THE DRILL SERGEANT: Alliance Resources (ASX: AGS) released the latest results from aircore drilling for gold underway at the company’s Wilcherry Project Joint Venture in South Australia between Alliance (79.01%) and Tyranna Resources (ASX: TYX) (20.99%).

Alliance Resources carried out the drilling at Weednanna East and close to the Weednanna gold deposit.

Aiilaince completed a total of eighty-five (85) aircore drillholes for 3,101 metres as a first pass test to extend known gold in regolith anomalism at Weednanna East.

This drilling program consisted of four lines of 50m by 200m spaced holes designed to test around the existing gold in soil and regolith anomalism and extend coverage to the west of existing RAB drilling at Weednanna East to cover a series of northwest striking faults.

Assay results have now been received with four holes returning greater than 100ppb gold with a best result of:

18WDAC078
2 metres at 1.31 grams per tonne gold from 49m.

The zone of discontinuous greater-than 100ppb gold anomalism extends over 1,000m and is open in the north.

Alliance explained that most of the gold anomalism has a northeast trend and is located towards the end of hole, near the saprolite/saprock boundary.

Given the iron-poor felsic nature of these host rocks, this is where the company expects gold in regolith anomalism to concentrate.

Alliance interpreted the results to show the magnitude and distribution of gold in the regolith may be indicative of primary gold mineralisation and has therefore determined further drilling is warranted to better define the gold in regolith anomalies before bedrock drill testing.

“Weednanna East is the first regional gold exploration target to be tested proximal to the Weednanna gold deposit,” Alliance Resources managing director Steve Johnston said in the company’s announcement to the Australian Securities Exchange.

“We are very encouraged by these aircore drilling results which indicate to us the prospectivity of the district.”

 

Email: info@allianceresources.com.au

Website: www.allianceresources.com.au

 

Alliance Resources Snares More Wilcherry Interest

THE BOURSE WHISPERER: Alliance Resources (ASX: AGS) has increased its interest in the Wilcherry Project Joint Venture (WPJV) Exploration Area in South Australia to 79.01 per cent.

Alliance Resources’ stakein the WPJV comes via its wholly-owned subsidiary Alliance Craton Explorer Pty Ltd (ACE).

Alliance’s JV partner Tyranna Resources (ASX: TYX) has diluted its interest in the WPJV Exploration Area to 20.99 per cent, having elected not to contribute to the WPJV approved Program and Budget for the period 1 July 2018 to 30 June 2019 totalling $3.2 million.

Alliance explained that ACE’s interest in the WPJV Exploration Area may increase to 83.64 per cent by 30 June 2019, should actual expenditure reach the approved FY2019 P&B expenditure.

Alliance released a maiden Mineral Resource estimate in September for the Weednanna gold deposit, part of the Wilcherry project, of 1.097 million tonnes at 5.1 grams per tonne gold for 181,000 ounces gold.

This was followed in October by an announcement of the discovery of graphite at the Yeltana prospect, 20 km west of the Weednanna gold deposit.

The discovery yielded drill results, including:

21.05 metres at 9.28 per cent total graphitic carbon (TGC) from 171.75m;

17.1m at 8.54 per cent TGC from 148m; and

17.2m at 5.05per cent TGC from 234.1m.

Alliance declared an Exploration Target for the Yeltana graphite prospect of between 24.5 million and 59 million tonnes grading between 5.5per cent and 10.2 per cent TGC.

“The potential quality and grade of this Exploration Target is conceptual in nature as there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource,” the company said in its ASX announcement.

 

Email: info@allianceresources.com.au

Website: www.allianceresources.com.au

 

Alliance Resources Commences Drilling of Weednanna Regional Targets

THE DRILL SERGEANT: Alliance Resources (ASX: AGS) has commenced aircore drilling on the regional gold targets surrounding the Weednanna gold deposit, part of the Wilcherry Project Joint Venture between Alliance (75.01%) and Tyranna Resources (ASX: TYX) (24.99%).

Alliance Resources indicated the first regional gold exploration target to be tested is the Weednanna East gold prospect.

A total of 85 holes for 5,525 metres is planned to be completed with the aim of defining gold in regolith anomalism.

Alliance explained the drilling will consist of four lines of 50m by 200m spaced holes designed to test around the existing gold in soil and regolith anomalism, extend coverage to the west to existing RAB drilling at Weednanna and east to cover a series of northwest striking faults.

“Holes will be drilled vertically to blade refusal and sampled over four metre composite intervals for gold and base metals,” Alliance Resources said in its ASX announcement.

“Any composite samples returning anomalism will be re-sampled and analysed over one metre intervals.”

 

Email: info@allianceresources.com.au

Website: www.allianceresources.com.au

 

Alliance Resources Drilling to Increase Weednanna Resource

THE DRILL SERGEANT: Alliance Resources (ASX: AGS) wasted little time getting back out on the ground with the resumption of RC drilling at the company’s Weednanna gold deposit in South Australia.

The Weednanna gold deposit ispart of the Wilcherry Project Joint Venture between Alliance (75.01%) and Tyranna Resources (ASX: TYX) (24.99%).

Alliance released a maiden Mineral Resource Estimate for Weednanna this week of 1.097 million tonnes at 5.1 grams per tonne gold for 181,000 ounces gold.

Alliance reported it has re-commenced RC drilling at the deposit with the intention of increasing the size of this resource.

During recent resource drilling several high-grade shoots were identified and these will be further delineated to increase the overall resource.

A total of 27 RC holes, for 4,200 metres, is planned to be completed and will consist of:

23 holes, for 3,600 metres, drilled to extend gold mineralisation at Shoots 1, 4, 5 and 5E; and

4 holes, for 600 metres, drilled to test for gold mineralisation associated with a major quartz vein in the immediate hangingwall at Shoot 1, where historic drill hole 00WDRC072 returned 48m at 2g/t gold from 54m, including 7m at 5.4g/t gold from 69m and 2m at 16g/t gold from 98m.

“This drilling program is the first of several drilling programs planned to increase the size of the Weednanna Mineral Resource,” Alliance Resources said in its ASX announcement.

 

Email: info@allianceresources.com.au

Website: www.allianceresources.com.au

 

Alliance Resources Releases Weednanna Maiden Resource

THE DRILL SERGEANT: Alliance Resources (ASX: AGS) announced a Maiden Mineral Resource Estimate for the Weednanna gold deposit, part of the Wilcherry Project Joint Venture between Alliance (75.01%) and Tyranna Resources (ASX: TYX) (24.99%) in South Australia.

Alliance Resources declared the maiden Mineral Resource Estimate of 1.097 million tonnes at 5.1 grams per tonne gold for 181,000 ounces gold confirms Weednanna as a quality gold deposit with outstanding economic potential.

The company explained that the reported Mineral Resource is that proportion of gold contained within $2,000 pit shells of: greater than 0.5g/t gold and greater than 2g/t gold underground potential.

The company signalled potential to increase the size of the Mineral Resource with further drilling as all 13 modelled gold shoots are open at in at least one direction.

Eighty-three per cent of the Mineral Resource occurs within 120 metres of surface (1,253 ounces per vertical metre) and is readily accessible using open pit or underground mining techniques.

Alliance said potential exists for new gold shoots not included in the current Mineral Resource.

The maiden mineral resource for Weednanna has been delivered 18 months after first drilling by the JV with a low discovery cost equivalent to $7.90 per ounce gold.

“The delivery of a maiden Mineral Resource is a significant milestone for the company and confirms Weednanna as a quality gold deposit with outstanding economic potential,” Alliance Resources managing director Steve Johnston said in the company’s announcement to the Australian Securities Exchange.

“This is the first step towards establishing the Wilcherry project area as an emerging gold-producing district in South Australia.”

 

Email: info@allianceresources.com.au

Website: www.allianceresources.com.au

 

Alliance Resources Identifies New Weednanna Gold Shoots

THE DRILL SERGEANT: Alliance Resources (ASX: AGS) has postponed the release of a maiden Mineral Resources at the company’s Weednanna gold prospect in South Australia.

Alliance Resources explained the postponement is due to recently-competed 3D modelling of historic gold mineralisation being brought into JORC Code 2012-compliance.

“The 3D modelling of this historic gold mineralisation is essential for the purposes of planning exploration in order to grow the project going forward,” Alliance Resources said in its ASX announcement.

“The historic gold mineralisation is now reported in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code), in order that it may be included in the maiden mineral resource estimate.

“Accordingly, the timing for completion of the mineral resource estimate has to be extended whilst this work progresses.”

Alliance said that 3D geological modelling completed at Weednanna in support of the maiden mineral resource estimate was initially planned to be restricted to the areas of highest drilling density around gold mineralised Shoots 1 to 4.

However, as Alliance’s understanding of the lithological and structural controls on the distribution of gold has evolved the importance of additional gold mineralisation was recognised from drilling intercepts in the historical database.

Thirteen gold shoots were identified during the 3D modelling process, including Shoots 1 to 4 that have been the focus of Alliance’s drilling activities during 2017 and 2018.

During 2017 and 2018 Alliance has systematically completed re-logging of all available RC chips and diamond core from Weednanna to provide detailed data for geological interpretation and 3D modelling.

Where drill chips or diamond core were not available for re-logging, the company re-digitised historic geological logging sheets to ensure the capture of all available geological data.

In total, 256 RC holes for 20,889 metres and 40 diamond holes for 4,779.6 metres were re-logged in addition to the 92 RC holes for 14,341 metres drilled by Alliance during 2017 and 2018.

Cross-sectional interpretation was completed on 25m spaced traverses along the 1,325 metre strike length of the prospect.

The Weednanna prospect forms part of the Wilcherry project Joint Venture between Alliance (71.09%) and Tyranna Resources (ASX: TYX) (28.91%).

 

Email: info@allianceresources.com.au

Website: www.allianceresources.com.au

 

Alliance Resources Promoting Weednanna from Gold Prospect to Gold Region

THE INSIDE STORY: Alliance Resources (ASX: AGS) is beginning to realise the potential lying within its flagship Weednanna gold prospect and other regional targets.

As Alliance Resources progresses Weednanna towards a maiden mineral resource estimate, the company has also turned its attention to the regional gold potential surrounding the prospect.

The Weednanna gold prospect is the most advanced of the Wilcherry Project Joint Venture in the Gawler Craton of South Australia between Alliance and Tyranna Resources (ASX: TYX).

As of 31 March 2018, Alliance had increased its interest in the Wilcherry Project Joint Venture Exploration Area to 71.09 per cent.

At Weednanna, high-grade gold shoots are associated with a calc-silicate and magnetite skarn system.

Alliance has stated its objective to establish a maiden mineral resource estimate for Weednanna this year and working towards that goal includes a staged program of metallurgical work on Weednanna gold mineralisation with the aim of optimising gold recovery and culminating in process design criteria and capital and operating costs for the processing base case.

Should the outcomes of both work streams be positive, Alliance intends feeding them into a scoping study to commence in the second half 2018.

The company has already demonstrated the exploration potential at Weednanna, however historic high-grade gold intercepts at the Mawson and Ultima Dam South prospects, both within a short trucking distance to Weednanna, also have the company very excited.

The most recent work at Weednanna consisted of Alliance’s fourth RC drilling program at the prospect, returning results that included four holes assaying greater than 50 grams per tonne-metres gold (grade by thickness).

Around the same time, Alliance completed a further 22-hole RC drilling program to define the geometry of Target 4 and initial testing of Target 5.

Fifteen holes at Target 4 reported intercepts greater than 1g/t gold, including four holes returning greater than 50g/t-m gold.

After a short break in drilling at Weednanna, Alliance returned in June to conduct a further 14 holes at Weednanna Target 4 with the aim to bundle together Targets 1 – 4 and 3D modelling to establish a mineral resource estimate.

“We finished a high-resolution gravity survey at Weednanna earlier this year, because we really wanted to fully understand the targets we are drilling,” Alliance Resources managing director Steve Johnston told The Resources Roadhouse.

“They are discreet targets and most have relatively narrow extents in cross section, but have potential for continuity down plunge and, of course, there is potential for repetition.

“We are trying to throw as much at it as we can in terms of geophysics because we already possess good magnetic data sets, a good regional gravity data set and previous IP work there has lit up sulphides which are often associated with gold.”

The high-resolution gravity survey revealed several structures, including a dominant NW-SE trending set.

The Weednanna Target 1 gold shoot is located along the most prominent of these NW-SE trending structures, which continues to the south of Target 4.

Alliance will use the gravity data to assist with mapping the sub-surface geology, particularly the target corridors of calc-silicate and magnetite skarn that host high-grade gold shoots.

The data will complement the existing geophysical datasets at Weednanna and will be utilised for constrained 3D inversion modelling to assist with targeting new gold lodes.

“The idea of doing the high-res gravity survey was to get a handle on the calc-silicate target, which hosts the gold mineralisation,” Johnston explained.

“We found some really large northwest-trending structures cutting across the project, which we had a hint of from the magnetics, but they really showed up from the gravity survey.

“One of the structures goes through Target 1, which is our largest target sitting in the west of the project.

“Target 1 is quite constrained at only 130 metres of strike, but this structure that trends through it, and continues on, is about one kilometre and, historically, there hasn’t been much drilling along the length of it.

“That has really opened that area for further exploration, so we will be looking at that too.

“Once we have modelled these targets we will be able to see if there are any other localities that might provide for structural repetition.

“It could be quite a powerful model that we will have at the end of it, so the wireframing we are doing is not just for a mineral resource estimate, it is also for targeting additional mineralisation.

“I’m confident that we will identify other target areas, I don’t know how many at this stage, but we have potential to add to the number of target areas we already have at Weednanna.”

In May this year, Alliance announced the commencement of a review of regional gold prospectivity in a bid to identify prospects with potential for gold mineralisation situated within five kilometres of Weednanna.

The company compiled results from historic geochemical and drilling databases that showed gold was encountered at the Mawson, Ultima Dam South and Weednanna North prospects, with anomalous gold of greater than 0.2g/t gold at the Ultima Dam and Ultima Dam North prospects.

The Mawson prospect sits 3,600m to the northwest of Weednanna and was initially identified by calcrete sampling in in the 1990s that defined a gold-in-calcrete anomaly over the southern part of the prospect.

Drilling by Anglogold into the anomaly in 1999 intersected 29m at 0.86 per cent copper from 41m.

Trafford Resources drilled nine RC holes across Mawson in 2008, including four with diamond tails with five holes reporting intercepts greater than 1g/t gold, with a best intercept of 5m at 2.46g/t gold from 159m, including 3m at 3.3g/t gold from 161m.

The Ultima Dam South prospect, 3,200m northeast of Weednanna, was also drilled by Anglogold in 1999.

Two holes reported intercepts over 1g/t gold, with a best and shallow intercept of 1m at 4.09g/t gold from 14m.

When it released the announcement, Alliance was surprised that it seemed to fly under the radar of market watchers and analysts.

“The market doesn’t always understand the implications of such an announcement,” Johnston said.

“That announcement was really a statement of historic results within a five-kilometre radius of Weednanna that we don’t believe had been published before.

“This was work completed by previous owners and explorers that included results of five metres at close to 2.5 grams per tonne gold at the Mawson prospect, just to the northwest of Weednanna and another of one metre at four grams per tonne gold from the Ultima Dam South prospect to the east.

“What is important to note is that the drilling was not targeting gold but copper at Mawson and iron ore at Ultima Dam South.

“Serendipitously there was gold and it appears to be associated with the calc-silicates and magnetite similar to what we’re getting at Weednanna.

“We will be having a really good look at that next year with a view to doing more geophysics and drilling to try and identify some of these target areas.

“We have only just scratched the surface at Weednanna, but there seems to be potential for multiple Weednanna-style deposits at these other localities.”

 

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