Alchemy Resources has secured a major milestone with Newcam Minerals exercising its option on the Bryah Basin Iron Ore Project, while completing the sale of its Karonie and Lake Rebecca gold projects to Forrestania Resources. The company also progressed exploration activities in New South Wales, positioning itself for multiple discovery opportunities.
- Newcam Minerals acquires 60% of Bryah Iron Ore Project
- Alchemy retains 40% free-carried interest to Decision to Mine
- Sale of Karonie and Lake Rebecca projects finalised with Forrestania
- Heritage surveys completed at Lachlan Projects in NSW
- Exploration expenditure of $272k with $0.82m cash on hand
Newcam Takes Control of Bryah Iron Ore Project
Alchemy Resources Limited (ASX:ALY) has reached a pivotal juncture in its Bryah Basin Iron Ore Project with Newcam Minerals exercising its option to acquire a 60% stake in the Valley Bore and Old Highway prospects. This move hands operational control to Newcam, who will manage the joint venture, while Alchemy retains a 40% interest free carried through to a Decision to Mine. The arrangement significantly de-risks Alchemy’s exposure while preserving upside potential.
The maiden drill program at Valley Bore, completed in late 2025, delivered standout results including 50 metres at 62.5% iron (64.4% calcined) from 17 metres in hole VBRC008. These high-grade intercepts underpin Newcam’s confidence in advancing the project. The JV agreement stipulates that if a feasibility study is not finished within five years, Newcam will withdraw, and should Alchemy’s interest fall below 5%, it reverts to a 3% gross revenue royalty.
Karonie and Lake Rebecca Projects Sold to Forrestania
In a strategic portfolio reshuffle, Alchemy finalised the sale of its Karonie and Lake Rebecca gold projects to Forrestania Resources (ASX:FRS) during the quarter, receiving 7,725,587 fully paid Forrestania shares as consideration. The deal also includes a 1% Net Smelter Royalty on all minerals mined from the tenements, excluding the first 110,000 ounces of gold from key deposits Parmelia, KZ5, and Taupo.
This divestment not only strengthens Alchemy’s balance sheet but also enables a sharper focus on its New South Wales copper-gold assets, notably the Yellow Mountain and Overflow projects. The transaction satisfied all conditions precedent in May 2026 and reflects a deliberate pivot toward higher-priority exploration targets.
Progress at New South Wales Copper-Gold Projects
Heritage surveys were successfully completed over the Yellow Mountain and Overflow project areas in the Lachlan region, clearing the way for upcoming drill programs. The surveys targeted induced polarisation (IP) chargeability anomalies that align closely with existing mineralisation models and geological interpretations.
The IP survey delineated several coherent chargeability anomalies along strike that remain untested, offering compelling targets for follow-up drilling. Previous drilling at Yellow Mountain returned a notable intercept of 113 metres at 1.17% copper equivalent from 43 metres, including several high-grade zones. These results validate the mineralised footprint and provide strong encouragement for further exploration.
Exploration Activity and Financial Position
Alchemy’s exploration efforts continued across its diversified portfolio, including gold, lithium, base metals, and iron ore. In the Bryah Basin gold JV with Catalyst Metals (ASX:CYL), 22 reverse circulation holes totaling 3,281 metres were drilled last quarter, with soil sampling ongoing and results pending.
Financially, the company ended the quarter with $0.82 million in cash and reported exploration expenditure of $272,000 net of contributions from the JOGMEC farm-in. No mining production or development activities were recorded during the period. Director and senior management remuneration totalled $89,000.
With strong joint venture partnerships and promising exploration results, Alchemy is well positioned to advance its discovery pipeline across Western Australia and New South Wales in the coming quarters.
Bottom Line?
Alchemy’s strategic JV and asset sales reduce development risk while sharpening focus on high-potential NSW copper-gold targets.
Questions in the middle?
- How will Newcam’s management influence the pace and scale of Bryah Iron Ore development?
- What impact will the Forrestania shareholding and royalty have on Alchemy’s future cash flow?
- Can upcoming drilling at Yellow Mountain unlock a new copper-gold resource to drive growth?