- During the March quarter, Alchemy Resources (ALY) progressed exploration activities across its Australian projects
- The company completed aircore drilling at the Karonie project in WA which encountered visible gold and outlined two major gold systems
- Alchemy also undertook heritage surveys at the Yellow Mountain project and a strategic review of its battery metals assets amid the price increase and the rising HPA demand
- Alchemy spent $431,000 on exploration and ended the quarter off with $2.5 million in cash
- Company shares have been trading down 6.58 per cent at 3.6 cents
During the March quarter, Alchemy Resources (ALY) progressed exploration activities across its Australian projects.
In January, the company began aircore drilling to test a number of high-priority targets across the Karonie East corridor within its Karonie project in Western Australia.
Positively, initial results reported in February encountered visible gold and returned assays of four metres at 2.89 g/t gold from 48 metres.
The following month, final assays from Karonie East outlined two large systems of anomalous gold mineralisation which included results of two metres at 3.79 g/t gold from 84 metres including one metre at 5.24 g/t gold and one metre at 2.34 g/t gold from 85 metres.
Subsequent to the quarter, the company began a follow-up reverse circulation drilling program and outlined broad lithium pegmatite mineralisation at Karonie with follow-up sampling underway.
Over at the Yellow Mountain project in New South Wales, the company completed heritage surveys ahead of planned drilling program around the historical mine area. No specific details have been released yet regarding a drilling program.
Alchemy also commenced a strategic review of its battery metals assets in New South Wales which include its 80 per cent-owned West Lynn nickel-cobalt project and the Summervale Alumina assets.
The review was fueled by the significant increase in base metals prices and the rising demand for high-purity alumina (HPA) products.
The review aimed to identify additional treatment pathways for the alumina resource and the potential to obtain a high quality HPA product, evaluate the exploration potential to build on the existing resource base, and consider potential partners to help develop the project.
In terms of cashflow, Alchemy spent around $431,000 on exploration and $49,000 on staff and admin costs.
At the end of the quarter, the company had $2.5 million in cash and an estimated 5.28 quarters left of available funding.
Company shares were down 6.58 per cent to trade at 3.6 cents at 12:36 pm AEST.