(MENAFN- ProactiveInvestors - Australia) Alchemy Resources (ASX: ALY) has passed 300,000 gold ounces at the strategically located Bryah Basin Project, 130 kilometres northeast of Meekatharra in Western Australia.
The total Indicated Resources at Hermes and Wilgeena is now: 4.7 million tonnes at 2.0 g/t gold for 300,060 gold ounces.
The resource modelling and estimation has been completed by Simon Coxhell of CoxsRocks Pty Ltd, an external and independent resource consultancy.
Where the story though gets even more interesting for Alchemy is the fact that the company's projects are uniquely located along strike and west of Sandfire Resources' (ASX: SFR) high-grade DeGrussa copper-gold deposit.
Increasing the prospectivity of the project even further - it is positioned southeast of Horseshoe Metals' (ASX: HOR) Horseshoe Lights copper-gold project, and adjacent to Peak Hill where about 1 million gold ounces have been mined from several gold deposits.
Oxide core test work
Metallurgical test-work undertaken on oxide core material from the Hermes and Wilgeena gold deposits, obtained from the diamond drilling program in 2010, indicates that the ore is amenable to treatment in a conventional crush, grind and CIL plant with good recoveries across all size fractions.
A high proportion of gold is contained in the coarse fraction, and the test-work indicates that a large percentage (40-60%) of the free gold at Hermes and Wilgeena could be recovered by gravity concentration. No technical issues have been identified that would result in a poor recovery or extenuating cost issues.
Alchemy has a goal of increasing its gold resources whilst also continually evaluating commercialisation opportunities.
The potential for growing the resource is encouraging considering mineralisation is open at depth at Hermes and Wilgeena.
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