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Alloy Resources Commences Copper-Gold Targeted Drilling

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THE DRILL SERGEANT: Alloy Resources (ASX: AYR) has kicked off aircore drilling of targets identified from extensional soil and rock chip sampling programs at the company’s Ophara cobalt-gold project in New South Wales.

Alloy Resources conducted the extensional soil sampling program within a seven square kilometre area surrounding the known Great Goulburn cobalt-gold prospect with the aim to assess new areas in the central eastern part of the project where outcropping hills with prospective geology was present.

Rock chip sampling was conducted over these areas as well as in the new eastern sampling area where a small historical shaft working was located.

Alloy reported the rock chip assays confirmed coincident anomalous cobalt-gold and copper at these areas and a small 2,500 metre program of air-core drilling has been designed to test four of the targets.

Drilling commenced last weekend as is progressing at approximately 300 metres per day while further infill soil sampling is being completed at the same time as the drilling.

“Field work is progressing well with two phases of soil sampling and then field checking and rock chip sampling enabling a logical definition of drill targets,” Alloy Resources executive chairman Andy Viner said in the company’s announcement to the Australian Securities Exchange.

“If we can confirm cobalt-gold-copper mineralisation by air-core drilling of these targets then it will open up huge potential on the other soil anomalies that do not have any surface expression.

“The newly located historical workings may also be opening up a different copper-rich mineralised area which is also very encouraging.”

 

Email: info@alloyres.com

Website: www.alloyres.com

 

Alloy Resources Drills High-Grade RC Gold Results

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THE DRILL SERGEANT: Alloy Resources (ASX: AYR) has recently completed exploration drilling activities at the Horse Well gold project Joint Venture.

Alloy Resources Horse Well JV (Alloy 51%: Doray Minerals Limited 49%) is located in the north-east goldfields of Western Australia adjacent to Northern Star’s Limited’s Jundee Gold Mine.

Alloy is currently sole funding exploration to earn up to 60 per cent in the Joint Venture.

A program totalling fourteen holes for 1,877 metres were completed at Warmblood, Filly SW and Dusk til Dawn prospects with the aim to test concepts for extensions and orientations of higher grade zones within known mineralised areas.

The RC drilling conducted at Warmblood confirmed high-grade shoot development at depth, returning:

AHWR 068
14 metres at 8.38 grams per tonne gold from 57 metres downhole (mdh), including 4m at 20.08g/t gold from 67 mdh and 3m at 10.05g/t gold from 89 mdh; and

AHWR 069
15m at 5.34g/t gold from 83 mdh, including 7m at 10.25g/t gold from 85 mdh.

The drilling also confirmed a northern extension to the high-grade Filly SW zone, including:

1m at 18.15g/t gold from 61 mdh.

The one-kilometre long Warmblood–Filly SW mineralised zone is open to the north and south and at depth.

At Filly SW there is a defined Inferred Mineral Resource of 85,000 tonnes at 8.24g/t gold.

Mineralisation was not closed off to the north where historic air-core drilling had intersected 4m at 43.6g/t gold and not been followed up.

Five RC holes, ACDR011-015, were drilled for 1,183m and 776 samples at the Dusk til Dawn prospect in the northern part of the Horse Well JV project.

Alloy Resources explained the results did not confirmed the concept of the target being a potential high-grade mineralised structure and further review is required to define the controls on higher grade gold mineralisation.

“The results at Warmblood and Filly SW confirm that the Horse Well JV area has potential for high grade gold mineralisation, and that this can occur over extensive strike lengths,” Alloy Resources executive chairman Andy Viner said in the company’s announcement to the Australian Securities Exchange.

“Our interpretation suggests the mineralisation style can be narrow and in ‘poddy’ very high-grade shoots related to the Celia Shear system and needs tight targeted drilling.

“Within the project The Celia Shear has numerous prospects from soil anomalies to drill anomalies that demonstrates the significant exploration potential over a 60-kilometre strike length.”

 

Email: info@alloyres.com

Website: www.alloyres.com

 

Alloy Resources Strike Farm-In JV with Rio Tinto

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THE BOURSE WHISPERER: Alloy Resources (ASX: AYR) has struck a Farm-In and Joint Venture Agreement with Rio Tinto subsidiary, Rio Tinto Exploration Pty Limited (RTX).

Alloy Resources and RTX will join forces to explore Exploration Licence EL 45/4807, located in the Paterson region of Western Australia.

The key terms of the Binding Term Sheet include:

Upon Execution RTX is to reimburse Alloy’s previous costs of $40,000.

RTX has the right to earn a 70 per cent joint venture interest in the Tenement by completing the following within 3 years:

Expenditure of at least $500,000; and
At least 500 metres of drilling on the Tenement.

RTX must spend a minimum of $133,000 within 12 months before it can withdraw and is obligated to keep the Tenement in good standing prior to any withdrawal.

In the event RTX earns a 70 per cent interest, Alloy will have a First Election to:

Commence contributing in accordance with its 30per cent participating interest;
Convert its interest to a 1.25 per cent NSR Royalty capped at $15 million plus a right to receive a $1.5 million prepayment of the Royalty upon a decision to mine; or
Not commence contributing to the joint venture and for RTX to continue to sole fund expenditure to earn a further 15 per cent interest.

“We are pleased to have RTX’s interest in exploring our large exploration area north-west of Telfer,” Alloy Resources executive chairman Andy Viner said in the company’s announcement to the Australian Securities Exchange.

“They have been actively exploring in the region since 2015 and we are hopeful that this intellectual knowledge can accelerate definition of the potential for gold-copper mineralisation within our Tenement.

“The area has some historic first pass copper and gold drill results of interest, however this was from back in the 1990s and we will now benefit from modern exploration techniques and geological models.”

 

Email: info@alloyres.com

Website: www.alloyres.com

 

Alloy Resources Expands Horse Well Ground

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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.”

 

Email: info@alloyres.com

Website: www.alloyres.com

 

Alloy Resources Believes Buyback puts Gold Project in Better Place

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THE CONFERENCE CALLER: Speaking at the RIU Explorers Conference in Fremantle, Alloy Resources (ASX: AYR) Executive Chairman Andrew Viner was optimistic the company is ready to start moving forward after an extended down period. By Jack Baker

“What we’ve tried to do with Alloy is get quality projects,” he told the conference audience.

“We’ve got projects adjacent to major world-class mining centres, we’ve got large land holdings, really good geology, established mineralisation and in all cases are underexplored.

“We’re looking for gold which remains fabulous, particularly in Australia.

“We’ve got a very exciting new high-grade discovery that’s happened next door.

“We’ve got multiple exploration targets that are ready to go with no impediments apart from lots of rain.”

Alloy Resources managed to buyback 11 per cent of its Horse Well Joint Venture from partner Doray Minerals (ASX: DRM) for $500,000 in order to attain a 51 per cent majority stake and retake control of the project in January, which Viner believes could become one of Australia’s premier gold mines.

The venture involves 1000 square kilometres of greenstone belt just 50 kilometres north of Northern Star’s 220,000 ounce per annum Jundee gold mine in the Wiluna district.

The company had been relatively dormant for the past 16 months during a lack of funding.

“There was no risk capital, the bad old days, unlike today,” Viner explained.

“We couldn’t find the funding and had to farm it out.”

Speaking later to The Resources Roadhouse, Viner said now that Alloy has the project back it can return to mining highly graded prospects that were too small for Doray to look at.

“Doray was looking for a big standalone…trying to find a million ounce, two-million-ounce deposit,” he said.

“We can go back to these highly graded prospects that have always been there that are perfect for Alloy.”

He also mentioned that with the project returned to the company’s management it could deal with larger players that were less likely to speak with a competitor in Doray.

“We can talk to Northern Star now,” Viner declared.

“The main thing for us is to create value that is going to get our share price up, play the game, maybe we end up being a target for Northern Star…we can do that, Doray couldn’t really do that.”

Viner pointed out that Doray possessing a clawback option in the case of a major discovery isn’t necessarily a bad thing.

“If that happens I’d be quite happy being free carried at 49 per cent, he said.

“Ee made sure that if there’s smaller discoveries we can develop them.

“There’s no impediment to us finding and developing smaller deposits.”

Viner said the Celia shear going through the middle of the greenstone belt was a major focus for the company.

“The Celia Shear actually has 300,000 ounces, it’s a bit deep and there’s quite a lot of depletion through there, but there’s a lot of gold,” he said.

“You combine that with our Horse Well deposits and you’ve already got yourself a mineralised structure with 380,000 ounces on it.”

The recent discovery of the Coralie Jean prospect was a cause of excitement for Viner.

“Lo and behold a little company called Overland Resources made a discovery late last year…it’s located in an exploration license that we completely surround,” Viner said.

“Fifty-five samples have averaged 17.3 grams of gold per tonne, it goes over 400 metres, an absolutely brilliant prospect-type discovery.”

Viner also touched on the company’s large cobalt and gold endowment near Broken Hill.

“Of course, cobalt is a very high demand metal for battery technology…you might have heard of Cobalt Blue, they have an absolutely huge deposit, 50,000 tonnes of cobalt,” he said.

“It really has a very good chance of being a major cobalt development in Australia, fortuitously Alloy landed with a 100 per cent-owned very large block of land right in the middle with the same geology and some signs of mineralisation.

“I didn’t really get a chance to stress that we have a great chance of finding something,

“Because the two players either side of us are at pre-feasibility stage, I’m really exploring to find more high-grade feed for those things…I can definitely add value there as well.

“We’ve got a really hot exploration project there, I hope you can see that, we’ve got the board that can do it.

“We’re in gold, we’re in cobalt: great places to be, we’ve got seriously strategic projects, we’ve got really big targets, we’re well funded, we’ve got a lot of support and there’s going to be a lot of activity over the coming year.”

 

Email: info@alloyres.com

Website: www.alloyres.com

 

Alloy Resources Commences Ophara Project Exploration

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THE DRILL SERGEANT: Alloy Resources (ASX: AYR) commenced exploration activities at the company’s Ophara cobalt-gold project located near Broken Hill in New South Wales.

Alloy Resources completed a data review and field inspection during January with an Independent Geochemist.

A surface sampling program has subsequently been designed and approved for commencement.

Alloy said the program will cover an area of approximately 60 square kilometres and will comprise conventional surface soil sampling on a 200 metre by 200 metre grid.

During the program soil mapping will be completed to enable accurate interpretation of different soil types which will assist interpretation of results.

“The program is expected to take two to three weeks to complete and a similar time for analysis,” Alloy Resources said in its ASX announcement.

“The objective of the program is to outline new drill targets for extensions and repetitions of the Great Goulburn cobalt-gold mineralisation.

“The area is regarded as highly prospective geologically as it is located between the Thackaringa project being advanced by Cobalt Blue Holdings (ASX:COB) and the Mutooroo project held by Havilah Resources (ASX:HAV) who have recently entered into a Memorandum Of Understanding.”

 

Email: info@alloyres.com

Website: www.alloyres.com