JOGMEC to Spend $6M for 51% Stake in Alchemy’s Karonie Project by 2029

Strategic Partnership Gains Regulatory Green Light

Alchemy Resources Limited (ASX: ALY) has marked a pivotal milestone in its Karonie Gold-Lithium Project with the receipt of Foreign Investment Review Board (FIRB) approval for a farm-in and joint venture agreement with Japan Organization for Metals and Energy Security (JOGMEC). This regulatory endorsement clears the path for JOGMEC to earn a 51% stake in the Roe Hills tenure by funding $6 million in exploration expenditure by March 2029.

The approval, announced in the December quarter of 2024, underscores the Australian Government’s support for foreign investment in strategic mineral projects, particularly those involving critical battery metals like lithium.

Accelerated Exploration Activities at Roe Hills

Following the FIRB clearance, Alchemy swiftly initiated a comprehensive multi-element soil sampling program across the Roe Hills tenement (E28/2976). By the end of the quarter, 1,449 samples had been collected with assays pending, as part of a broader campaign targeting a total of 3,696 samples. This program aims to refine and infill previous sampling grids, enhancing the resolution of lithium and pathfinder element anomalies.

Complementing soil sampling, reconnaissance mapping has commenced to validate existing lithium-in-soil anomalies and identify additional pegmatite structures, which are critical hosts for lithium mineralisation. These efforts are designed to build a robust geological framework ahead of planned drilling campaigns.

Gold Exploration Progress and Drilling Insights

On the gold front, Alchemy completed reverse circulation (RC) drilling at the Monty Prospect, situated along strike from the Parmelia Resource, which hosts an inferred 20,700 ounces of gold. The drilling returned broad zones of low-grade gold mineralisation, confirming continuity along a 4-kilometre prospective structural corridor that remains underexplored.

While aircore drilling at the Challenger Prospect did not yield significant results, the identification of lamprophyre and sanukitoid lithologies as key mineralisation indicators is shaping future targeting strategies. These lithologies correlate closely with gold mineralisation in the region, offering promising vectors for subsequent drill programs.

Advances in Lachlan Projects and Heritage Engagement

In New South Wales, Alchemy’s Lachlan Projects continue to advance with active engagement and land access agreements secured with the Ngemba, Ngiyampaa, Wangaaypuwan, and Wayilwan Peoples. Heritage survey requests have been submitted to facilitate upcoming drilling at the Yellow Mountain Prospect, where historic sampling has revealed high-grade copper, gold, and lead mineralisation.

Drill planning is underway to follow up on compelling assay results, including rock-chip samples grading up to 2.34% copper and 2.34 g/t gold. The heritage surveys are expected to be completed by February 2025, enabling the commencement of drilling activities shortly thereafter.

Financial Position and Corporate Overview

Alchemy reported a cash balance of $2.00 million as of 31 December 2024, with exploration expenditure totaling $533,000 during the quarter. The company remains focused on advancing its portfolio of gold, lithium, and base metal projects across Western Australia and New South Wales, leveraging strategic partnerships and a disciplined exploration approach.

Notably, Alchemy has regained operational control of the Bryah Basin Project following Sandfire Resources’ decision to assign its 80% interest back to Alchemy, consolidating its position in this prolific mineral province.