Historic Data Validation De-Risks Alchemy’s Yellow Mountain Ambitions
Alchemy Resources has delivered compelling assay results from its recent drilling at the Yellow Mountain Project, confirming and extending mineralisation first identified in the 1970s. The standout intercept of 113 metres at 1.17% copper equivalent underscores the project's promising scale and potential.
- Five reverse circulation holes all intersected mineralisation
- Best intercept – 113m at 1.17% CuEq including gold, silver, copper, lead, zinc
- Historic 1970s drilling data validated, de-risking project outlook
- Mineralisation remains open along strike and at depth
- Follow-up drilling and geochemical analysis planned
Strong Validation of Historic Data
Alchemy Resources Limited (ASX, ALY) has announced a significant milestone in its exploration journey at the Yellow Mountain Project in New South Wales. The company’s recent reverse circulation drilling program, designed to test and validate mineralisation first identified in the 1970s, has returned outstanding assay results. All five holes drilled intersected mineralised zones, with the highlight being a substantial 113-metre intercept grading 1.17% copper equivalent (CuEq).
Impressive Multi-Metal Grades
The standout hole, YMRC004, delivered a continuous mineralised interval from 43 metres to the end of the hole at 156 metres. This intercept includes notable sub-intervals with elevated grades of gold, silver, copper, lead, and zinc, reflecting the polymetallic nature of the deposit. Another hole, YMRC005, revealed a broad gold intercept of 31 metres at 0.49 grams per tonne gold, a significant addition given the absence of historic gold assays in adjacent holes.
De-Risking and Project Potential
Chief Executive Officer James Wilson emphasised the importance of these results, stating that validating mineralisation recorded over four decades ago significantly de-risks the project. The confirmation of historic data not only bolsters confidence in the project’s scale but also supports the use of legacy information to guide ongoing exploration. This is particularly valuable in a market environment where base and precious metal prices remain robust.
Geological Context and Next Steps
The Yellow Mountain Project’s mineralisation occurs within a structurally controlled polymetallic system hosted in felsic volcanic rocks. The geological setting is complex, with mineralisation associated with brittle felsic volcanics and vein systems. Alchemy plans to leverage geochemical analysis and geophysical techniques to refine targeting and better understand mineral distribution. Follow-up drilling is already being planned to test extensions along strike and at depth, aiming to expand the known mineralised zones.
Strategic Positioning in NSW
Located approximately 200 kilometres southeast of Cobar, the Yellow Mountain Project benefits from a rich mining history dating back to the mid-1800s. While historic production records are incomplete, the recent drilling results suggest significant untapped potential. Alchemy’s broader portfolio, including interests in Western Australia and other NSW projects, positions the company well to capitalize on rising demand for base and precious metals.
Bottom Line?
With historic data validated and mineralisation open for expansion, Alchemy Resources is poised for a pivotal phase at Yellow Mountain.
Questions in the middle?
- How will metallurgical test work confirm the economic viability of the polymetallic mineralisation?
- What are the timelines and scale for the planned follow-up drilling campaigns?
- How might evolving metal prices impact the project’s development strategy?
