- Alchemy Resources (ALY) completes a maiden reverse circulation (RC) drilling program at its Karonie project in Western Australia
- The 30-hole drilling program intersected pegmatite zones extending for up to 700 metres of strike at the Hickory prospect, which remains open
- Alchemy says these findings confirm its belief that there is a “substantial system” developing at depth at Hickory and to the north under shallow alluvial cover
- All samples have been sent for assaying, and the company expects to receive the first batch of results next month
- ALY shares are down 27.274 per cent to trade at 3.92 cents at 11:23 am AEDT
Alchemy Resources (ALY) shares have tumbled after the company announced it had completed a maiden reverse circulation (RC) drilling program at its Karonie lithium-gold project in Western Australia.
The 30-hole RC program tested multiple high-priority lithium targets and intersected zones of pegmatites extending for up to 700 metres of strike in the northern part of the Hickory prospect.
The company believes the pegmatites extend for at least 150 metres from surface and remain open with varying widths from one to 27 metres downhole.
Alchemy said the initial findings confirmed its belief that there was a “substantial system” developing at depth at Hickory and to the north under shallow alluvial cover.
CEO James Wilson said the discovery of extensive, thick stacked pegmatites at Hickory was an “outstanding” result.
“This confirms our model that mapped pegmatites are continuous at depth, have a stacked geometry and continue to the north and west under the shallow alluvial cover, which extends for roughly three kilometres to the north masking any surface geochemical expression,” Mr Wilson said.
The company has sent all samples to ALS Kalgoorlie for assaying and expects to receive the first lot of results next month and will undertake further drilling.
ALY shares were down 27.274 per cent to trade at 3.92 cents at 11:23 am AEDT.