28/09/2010 - 10:24

Alchemy strikes gold at Magnus Project

28/09/2010 - 10:24

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Gold explorer Alchemy Resources has intersected wide intervals of gold mineralisation during an eight-hole RC drilling program at its Magnus Copper-Gold project in the Murchison.

Alchemy strikes gold at Magnus Project

Gold explorer Alchemy Resources has intersected wide intervals of gold mineralisation during an eight-hole RC drilling program at its Magnus Copper-Gold project in the Murchison.

The drill results included at 24m intersection at 3.21 grams per tonne and 4m at 6.47 grams per tonne.

In a statement to the Australian Securities Exchange Alchemy said, 'A follow-up drilling program will be undertaken in November 2010 to test extensions of the gold mineralisation to the north-west of the recently completed drilling program."

"The initial drilling program was co-funded through a grant by the WA Government under the Exploration Incentive Scheme."

 

 

See company statement below:

Alchemy Resources Limited ("Alchemy" or the "Company") (ASX: ALY) is pleased to report that an eight hole RC drilling program at its Magnus Copper-Gold Project in Western Australia has intersected wide intervals of gold mineralisation (Figure 1).

The results were recorded at the Central Bore Gold Prospect located within Magnus, which sits immediately adjacent to Sandfire Resource's spectacular DeGrussa copper-gold discovery (Figure 2).

Assay results from 4m composite samples (using a 0.25g/t gold cut-off) have returned significant gold intersections (Table 1), including:
24m @ 3.21g/t Au (including 4m @ 12.85g/t Au) in CBRC005
36m @ 1.28g/t Au in CBRC005;
36m @ 2.38g/t Au (including 8m @ 6.54g/t Au) in CBRC004; and
4m @ 6.47g/t Au in CBRC002.

If a lower cut-off grade of 0.1g/t gold is applied to the results then this indicates that the high grade intervals are within a broader zone of mineralisation. In particular, this would extend the zone of mineralisation in CBRC005 to 92m @ 1.41g/t Au from 24 metres.

A follow-up drilling program will be undertaken in November 2010 to test extensions of the gold mineralisation to the north-west of the recently completed drilling program. The initial drilling program was co-funded through a grant by the WA Government under the Exploration Incentive Scheme.

Alchemy Managing Director Michael Hannington said that while just one drilling program had been completed, the results highlighted the significant potential of the Magnus Project.

"The recently completed drilling program at the Central Bore Gold Prospect is part of a systematic program to comprehensively evaluate the copper and gold potential at the Magnus Copper-Gold Project. We will continue to drill test targets over the next 3 months."

Central Bore is 13 kilometres to the south-east of the Hermes Gold Project. The mineralisation at Central Bore is hosted in a deformed granite and mafic schist with extensive quartz veining and disseminated pyrite and appears to lie within a northwest-trending corridor that is blanketed by transported cover from a major stream system.

 

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