Newcam Exercises Option for 60% of Bryah Iron Ore; Karonie Sold for $5 Million

• Newcam earns 60% interest in Bryah Iron Ore JV
• Karonie and Lake Rebecca sold for $5 million in Forrestania shares
• Strong IP anomalies and drill targets at Yellow Mountain copper-gold project
• Roe Hills lithium drilling intersects narrow pegmatites, no significant lithium
• Cash balance at $0.59 million with $255k spent on exploration

Newcam Takes Operational Control of Bryah Iron Ore Assets

Alchemy Resources (ASX:ALY) has crossed a significant threshold with Newcam Minerals exercising its option to acquire a 60% interest in the Bryah Iron Ore Project in Western Australia. This move hands Newcam operational control of key prospects including Valley Bore and Old Highway, while Alchemy retains a 40% free-carried stake through to a Decision to Mine. The partnership de-risks development for Alchemy while preserving upside exposure to high-grade iron ore resources.

Newcam’s confidence in the project is underscored by a $500,000 option fee payment received post-quarter and a prior $500,000 payment upon option execution, alongside a strategic share subscription at a premium price. The maiden drill program at Valley Bore delivered standout intercepts such as 50m @ 62.5% Fe from 17m, confirming the project's high-grade potential. Newcam is now poised to manage an upcoming 70-hole drilling campaign aimed at delineating resource extents and advancing feasibility studies.

This arrangement builds on earlier exploration momentum, including extensive mapping and sampling that identified multiple hematite-rich ridges with surface widths up to 100m and grades exceeding 65% Fe. The JV agreement also includes a fallback royalty arrangement if Alchemy’s interest dilutes below 5%, reflecting a balanced risk-reward structure for both parties. The deal is a textbook example of a junior miner leveraging an experienced operator to advance capital-intensive iron ore assets.

Strategic Divestment of Karonie and Lake Rebecca Projects to Forrestania

In a parallel corporate manoeuvre, Alchemy signed a binding agreement to sell its Karonie and Lake Rebecca gold projects to Forrestania Resources (ASX:FRS) for a total consideration of 7.9 million Forrestania shares, valued at approximately $5 million based on a 10-day VWAP. The sale includes a retained 1% net smelter royalty on mineral production, excluding the first 110,000 ounces from key deposits, securing Alchemy a continuing revenue stream without operational commitments.

Karonie hosts an inferred resource of 111,000 ounces of gold at a 0.8g/t cut-off, situated within a prolific gold corridor near established operations such as Vault Minerals’ Aldiss Mining Centre and Ramelius Resources’ Bombora deposit. The transaction enables Alchemy to sharpen its focus on higher-priority assets in New South Wales, particularly the Yellow Mountain and Overflow copper-gold projects, as it pivots towards base metals and polymetallic exploration.

The completion of this deal, expected imminently, strengthens Alchemy’s balance sheet and aligns with its strategic pivot, as detailed in the recent Karonie sale completion. This move also reflects a broader trend of portfolio rationalisation among juniors seeking to concentrate capital on projects with the most promising discovery potential.

Yellow Mountain Project Reveals Expanding Copper-Gold System

Alchemy’s New South Wales assets continue to deliver encouraging signs, with the Yellow Mountain copper-gold project emerging as a standout. Recent induced polarization (IP) surveys revealed strong chargeability anomalies up to 35mV/V, delineating two robust drill-ready targets along strike from known mineralisation. These anomalies correspond closely with previous drilling intercepts, including a notable 113m at 1.17% CuEq and 31m at 1.54% CuEq, confirming a large, continuous polymetallic system that remains open.

The IP results not only validate existing mineralisation but also highlight untested zones concealed beneath transported cover, offering compelling exploration upside. Planning and heritage clearances are underway to expedite drilling, which aims to test these high-priority targets and potentially extend the mineralised footprint. The geophysical data’s alignment with mineralisation models enhances confidence in the project’s prospectivity, underpinning Alchemy’s strategic focus in the region.

This exploration momentum follows earlier IP survey results at Yellow Mountain that expanded the project’s target pipeline and reduced exploration risk, positioning Alchemy well for forthcoming drill campaigns.

Lithium Prospects at Roe Hills Show Limited Results

At the Roe Hills Joint Venture, operated under a farm-in agreement with JOGMEC, Alchemy completed a four-hole reverse circulation drill program targeting pegmatite bodies associated with lithium mineralisation. Although the drilling successfully intersected pegmatites, all were narrow (<1m true width) and lacked evidence of thickening at depth. Consequently, no significant lithium grades were reported, tempering expectations for this target area.

Despite this setback, the broader JV remains active, with JOGMEC retaining the right to earn a 51% interest by spending $6 million by March 2029. The area’s geological setting adjacent to the Manna lithium deposit maintains its long-term potential, but near-term focus will likely shift towards higher-impact projects within Alchemy’s portfolio.

Financial Position and Outlook

Alchemy closed the quarter with $590,000 in cash, having spent $255,000 on exploration activities. The company received an additional $500,000 from Newcam following the exercise of the Bryah Iron Ore option, bolstering its liquidity. Operating and corporate costs remained tightly managed, with total payments to directors and senior management at $101,000 for the period.

With a funding runway estimated at just over one quarter based on current expenditure, Alchemy’s recent capital inflows and strategic transactions provide some breathing room. The company’s ability to secure funding and execute value-accretive deals suggests it is navigating the typical cash flow constraints of an exploration junior with a diversified asset base.

Bottom Line?

Alchemy’s Bryah Iron Ore JV with Newcam and the Karonie divestment mark pivotal steps in its evolution, but upcoming drilling results and feasibility studies will be crucial to translate exploration promise into tangible value.

Questions in the middle?

• Will Newcam’s management accelerate Bryah’s development timeline beyond initial drilling?
• How will Forrestania’s share price and production plans affect the value of Alchemy’s royalty stream?
• Can the IP anomalies at Yellow Mountain translate into a resource upgrade or new discovery?