Alchemy Resources Uncovers Extensive High-Grade Iron Ore at Valley Bore

Strong Start for Valley Bore Drilling

Alchemy Resources Limited (ASX – ALY) has released assay results from its inaugural reverse circulation (RC) drilling program at the Southern Ridge target within the Valley Bore Iron Ore Project in Western Australia. The program, comprising 15 drill holes totaling 1,027 meters, was designed to test the depth and extent of high-grade iron ore mineralisation previously identified at surface.

The results are compelling – multiple intercepts reveal thick zones of iron ore grading above 60% Fe, with standout hits including 35 meters at 60.1% Fe and 20 meters at 62.9% Fe. These grades are considered exceptional in the iron ore sector, particularly given the mineralisation extends from surface to at least 50 meters depth, and remains open along strike and at depth.

Strategic Location and Development Potential

Valley Bore benefits from its proximity to the Great Northern Highway, a sealed road that provides direct access to major export ports at Geraldton and Port Hedland. Crucially, the project sits on a granted mining lease, which significantly de-risks the pathway to development by removing key regulatory hurdles. This positioning offers Alchemy a potentially accelerated timeline to commercialisation, contingent on further economic validation.

Chief Executive Officer James Wilson highlighted the significance of the results, noting that the drilling validates the strength of the mineralised system and the company’s technical approach. He also emphasised the importance of the recent binding option agreement with Newcam Minerals Pty Ltd, an established iron ore producer with secure port facilities and ongoing operations nearby at Mt Gould. This partnership is expected to provide critical logistics and transport solutions, enhancing the commercial viability of the Valley Bore project.

Next Steps and Exploration Outlook

While the initial drilling results are promising, assays from six additional holes are pending, with results anticipated by mid-December 2025. Alchemy plans to undertake further drilling to better define the orientation of the mineralisation and to test for extensions along strike, aiming to delineate a more comprehensive resource.

The Southern Ridge target itself features laterally extensive hematite units and banded iron formations that outcrop over 800 meters, with widths ranging from 10 to 100 meters. Historical rock chip sampling in 2024 returned grades up to 65.3% Fe, reinforcing the high-grade nature of the deposit.

Alchemy’s broader Bryah Basin iron ore portfolio, including Valley Bore, is now positioned for advancement under the joint venture framework with Newcam, where Newcam may acquire a 60% interest and assume management of the project. This collaboration could unlock synergies in exploration, development, and logistics, critical factors in the competitive iron ore market.