Valley Bore’s Open-Ended Mineralisation Raises Questions on Project Scale and JV Timing
Alchemy Resources has reported further high-grade iron ore intercepts at its Valley Bore Project in Western Australia, confirming mineralisation over a 600m strike length with strong potential for expansion. The company’s joint venture option with Newcam Minerals adds strategic momentum to the project’s development prospects.
- New assays confirm wide, consistent high-grade iron ore at Southern Ridge
- Mineralisation extends over 600m strike length and remains open at depth and along strike
- Drilling program comprised 15 reverse circulation holes totaling 1,027m
- Option agreement with Newcam Minerals offers pathway to accelerated development
- Further drilling planned to define mineralisation geometry and test extensions
Strong Assay Results Reinforce Valley Bore’s Potential
Alchemy Resources Limited (ASX – ALY) has released additional assay results from its recent reverse circulation drilling program at the Valley Bore Iron Ore Project in Western Australia. The latest data from six drill holes at the Southern Ridge target confirm the presence of wide, high-grade iron ore mineralisation, with intercepts such as 50 metres at 62.5% iron (Fe) and internal zones exceeding 63% Fe calcined. These results build on previously reported findings and demonstrate consistent grade continuity across the target area.
Expanding Mineralisation Footprint
The drilling program, comprising 15 holes for a total of 1,027 metres, has now delineated mineralisation over a strike length exceeding 600 metres. Importantly, the iron ore remains open both along strike and at depth, suggesting significant upside potential. Historic rock chip sampling further supports the structural continuation beyond current drilling limits, highlighting promising exploration targets such as the Old Highway area to the north-east.
Strategic Location and Infrastructure Advantages
Valley Bore benefits from proximity to the Great Northern Highway, a sealed road providing efficient access to major export ports at Geraldton and Port Hedland. This logistical advantage enhances the project's attractiveness from a development perspective, potentially reducing capital and operating costs associated with transport and export.
Joint Venture Option with Newcam Minerals
Alchemy has entered into a binding option agreement with Newcam Minerals Pty Ltd, under which Newcam may acquire a 60% interest in the Bryah Iron Ore tenements, including Valley Bore. The agreement includes staged payments and a pathway to a formal joint venture, with Newcam assuming management upon exercise of the option. This partnership could accelerate the project's advancement towards mining lease applications and feasibility studies.
Next Steps and Exploration Outlook
With all assay results now received, Alchemy is progressing technical interpretations and planning further drilling to better define the geometry of the mineralisation and test for extensions along strike. The company has identified multiple high-priority targets within the broader Valley Bore and Bryah Basin region, positioning itself for continued exploration success and potential resource growth.
Bottom Line?
As Alchemy Resources advances drilling and awaits Newcam’s JV decision, Valley Bore’s high-grade iron ore promise could soon translate into tangible development milestones.
Questions in the middle?
- Will Newcam Minerals exercise its option to acquire a majority interest and accelerate development?
- How will further drilling refine the resource estimate and impact project economics?
- What timelines can investors expect for feasibility studies and potential mining lease applications?
