Alchemy Resources reported strong exploration progress in lithium, iron ore, and base metals across Western Australia and New South Wales, highlighted by promising drill results and strategic joint ventures.
- 211-hole aircore lithium drilling completed at Roe Hills with broad mineralisation
- Binding agreement with Newcam Minerals for 60% earn-in on Bryah iron ore assets
- Exceptional high-grade iron ore intercepts including 50m @ 62.5% Fe at Valley Bore
- Strong base metals and gold results at Yellow Mountain supported by new IP survey targets
- Cash position of $1.02 million with $379k spent on exploration during the quarter
Exploration Momentum at Roe Hills Lithium Project
Alchemy Resources Limited has made significant strides in its lithium exploration at the Roe Hills Project in Western Australia. The company completed a comprehensive aircore drilling program comprising 211 holes targeting high-priority lithium zones identified through an integrated approach combining soil geochemistry, LiDAR, and structural mapping. Assay results revealed broad zones of mineralisation within pegmatite targets, underpinning the potential for lithium-caesium-tantalum (LCT) pegmatite systems. Encouraged by these findings, Alchemy commenced follow-up reverse circulation (RC) drilling subsequent to the quarter, with results anticipated shortly.
Strategic Iron Ore Partnership at Bryah Projects
In a notable development, Alchemy executed a binding agreement with Newcam Minerals, an experienced iron ore miner, granting Newcam the right to earn a 60% interest in Alchemy’s Bryah iron ore assets, including the Valley Bore and Old Highway prospects. Alchemy retains a 40% free-carried interest to a Decision to Mine, positioning the company to benefit from future project advancement without immediate capital outlay. The maiden RC drilling program at Valley Bore delivered exceptional intercepts, notably 50 metres grading 62.5% iron (64.4% calcined), highlighting the high-grade nature of the deposit and validating the project's exploration potential.
Encouraging Base Metals and Gold Results at Yellow Mountain
Alchemy’s New South Wales portfolio also showed promise, with assay results from five RC holes at the Yellow Mountain Project confirming significant base metals and gold mineralisation. Highlights include a 113-metre intercept grading 1.17% copper equivalent and a 31-metre interval at 1.54% copper equivalent, both containing notable gold and silver credits. Complementing these results, an Induced Polarisation (IP) survey identified strong chargeability anomalies up to 35mV/V, revealing two robust drill targets in previously untested areas. These findings support the company’s view of Yellow Mountain as a compelling exploration opportunity with potential for resource expansion.
Financial Position and Outlook
Alchemy ended the quarter with $1.02 million in cash and invested $379,000 in exploration activities, reflecting a disciplined approach to advancing its diversified portfolio. The company benefits from strategic partnerships, including the JOGMEC joint venture at Roe Hills and the Newcam earn-in at Bryah, which provide both financial support and operational expertise. With multiple projects advancing, Alchemy is well-positioned to unlock value across lithium, iron ore, gold, and base metals in the coming quarters.
Bottom Line?
Alchemy Resources’ latest drilling and JV deals set the stage for potential resource upgrades and value growth, with key assay results and JV milestones on the horizon.
Questions in the middle?
- When will the results from the ongoing RC drilling at Roe Hills be released, and how might they impact lithium resource estimates?
- Will Newcam exercise its option to fully acquire the 60% interest in Bryah iron ore assets, and what are the implications for project development timelines?
- How will the new IP survey targets at Yellow Mountain influence the scale and focus of upcoming drilling campaigns?