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Alchemy Resources (ASX:ALY) has become the sole owner of the Bryah iron ore project in Western Australia, acquiring the remaining 50% interest in the iron ore rights from Carey Mining Pty Ltd for $75,000 cash in addition to a royalty.
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The latter will ensure Carey receives gradational royalty on iron ore sold FOB (freight on board) from the Bryah, starting at 80 cents (royalty) when the iron ore price is less than $100 per tonne, $1 when it is priced between $100 and $125, and $1.22 when iron ore is priced at more than $125 per tonne.
Expectations for Bryah have been strong following recent explorations, which have confirmed Valley Bore as being a key target for iron ore mineralisation, indicated by the outcrops of high-grade hematite and banded iron which extend over two kilometres in strike, with widths of 10 to 80 metres.
In 2024, rock-chip assays picked up grades of 64.9% Fe from the Southern Ridge target, while recent assays up to 65.9% Fe were reported from new zones found 3km to the south-west along strike.
CEO James Wilson said all indications for the project seemed promising. “We’re excited to announce the acquisition of the remaining interest in the JV exploration licences, bringing our ownership of the iron ore on these tenements to 100%,” he said.
“The project continues to deliver promising results, with high-grade iron ore rock-chip samples returning assays above 65% Fe – strongly supporting the Direct Shipping Ore potential on a granted mining lease at Valley Bore.”
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“The opportunity is particularly compelling given our strategic location 12km from the Great Northern Highway and surrounded by major players in the sector.”
ALY is trading at 0.5 cents.
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