ALY - Alchemy Resources

[Dona Ferentes]

Alchemy Resources down almost 20% today to 1.7c after reporting disappointing drilling results at the company's Karonie project in the Eastern Goldfields, WA.

This is the second set of drilling results from Karonie. The previous results were announced on 30 October last year and were equally as disappointing, resulting in a similar share price decline.

Karonie appears to be a dud.

Still at it. Still 1.6c a share .

Excellent Gold Potential;
✓ Karonie Gold Project – quality drill targets, close to existing resources and processing infrastructure
✓ Lake Rebecca Gold Project – newly pegged, quality geological setting, known gold bearing structures and close to existing resources
✓ Mining proposed at Hermes & Hermes South gold deposits mid-2021(potential cash inflow for Alchemy)

High Quality Gold and Base Metal Targets;
✓ Overflow Project – Hera style high grade gold & base metal drill targets
✓ Yellow Mountain Project – prospective porphyry Cu-Au & VMS targets
✓ Sandfire Resources Bryah Basin JV – high intensity, fully funded base metal exploration

Nickel-Cobalt and Alumina Resources;
✓ Large tonnage Ni-Co & alumina (potential HPA) resources at West Lynn with good exploration upside


* Enterprise Value of ~$11M = highly leveraged to exploration success within quality projects

 

[greggles]

Assay results have been received for all 27 holes from the Phase 1 RC drill program at ALY's 100% owned Karonie Gold Project.

Honestly, the grades are looking very average. While it's nice that they have intercepted some gold if these results are the best from 27 RC drill holes, then the others must have been really grim. The depth is a problem too. If these kind of grades were very close to the surface it might be economic, but they're much deeper for the most part.

Maybe it's time for ALY to move on from Karonie?

 

[frugal.rock]

Maybe it's time for ALY to move on from Karonie?

Seems like they are still at it, but possibly get results now?
Can't say for sure, but the chart looks promising?
Not surprised I've missed this one these days...?

 

[greggles]

Seems like they are still at it, but possibly get results now?
Can't say for sure, but the chart looks promising?

Promising is correct, but lithium instead of gold, and the chart is looking even better today.

Alchemy Resources Limited (ASX: ALY) (“Alchemy” or “the Company”) is pleased to announce it has identified a new coherent lithium and pathfinder elements anomalous corridor at its 100% owned Karonie Gold Project located east of Kalgoorlie in Western Australia. The tenements sit contiguous and 8km along strike of the Manna Lithium Deposit owned by Global Lithium Resources Limited and Breaker Resources NL (ASX:GL1 80%, ASX:BRB 20%).

The market is loving the news, ALY up 42.11% today.

 

[frugal.rock]

Bit of a move today off the back of ?
A few other "fave" lithium stocks moving? ??

No news since 5/7/22. Summary below.
The last point is interesting.

LITHIUM AND GOLD EXPLORATION UPDATE
HIGHLIGHTS
▪ Excellent progress made on accelerated lithium-gold focussed
exploration program.
▪ Project wide regional soil geochemical sampling completed along the
lithium prospective “Goldilocks trend”.
▪ Detailed mapping and sampling on high priority lithium targets
completed.
▪ 100m x 40m infill soil sampling on Cherry, Hickory and Pecan completed.
▪ Gold exploration drilling at Gilmore, Karonie East and KZ5 completed.
▪ Priority target areas currently being assessed for potential drill programs
and further infill soil sampling.
▪ Assays pending for 793 infill soils, 1,471 regional soils, 68 rock chip and
278 RC drill samples.

 

[Dona Ferentes]

Bit of a move today off the back of ?
A few other "fave" lithium stocks moving? ??

Lithium in favour, after Tesla beat profit expectations and forecast annual sales growth around 50 per cent for the forseeable future.

• Core Lithium is up 5.5 per cent to $1.06
• Sayona Mining is up 4.7 per cent to 16.5¢
• Liontown Resources is up 6.7 per cent to $1.19
• Vulcan Energy is up 6.5 per cent to $6.93
• Novonix is up 9.4 per cent to $2.44
• Pilbara Minerals is up 1.6 per cent to $2.52
• Lake Resources is up 8.6 per cent to 76¢

 

[frugal.rock]

Lithium in favour,

Not sure what time you took your figures, however.. it would seem things kept moving.

 

[Dona Ferentes]

Not sure what time you took your figures, however.. it would seem things kept moving.

At least I got the + sign right. It was a midday report.

Cheers

 

[frugal.rock]

A small entry for me on 0.019
Hopefully it pushes on out of it's base range.
From 29/7/22 announcement,
"Assays results pending for 793 infill soils, 1,471 regional soils."

 

[frugal.rock]

Chart update
6 month

1 month

 

[kenny]

Although there hasn't been much action since Frugal's update in August; ALY did come out with an interesting announcement today that piqued my attention. The gist of this "nearology" play (to Global Lithium's Manna deposit) being;

Alchemy has been drawn first in a ballot for exploration licence E28/3207 at its 100% owned Karonie Lithium and Gold Project in Western Australia.
▪ The new tenement covers approximately 24.8km2 of highly prospective tenure along strike of Global Lithium Resources (ASX: GL1) Manna Lithium deposit and adjacent to Breaker Resources (ASX: BRB) Lake Roe Gold Project.
▪ The project is highly prospective and sits within the target “Goldilocks Zone” corridor in which LCT Pegmatites can occur.

This undoubtedly gave the SP some momentum however the overshadowed comment that made me think this might be worth a punt is the short term anticipation of;

Maiden Lithium focussed RC drill program remains on track for commencement in October 2022, targeting high tenor anomalism at Hickory Prospect.

 

[kenny]

Ah well, there goes my chance at a spot this month. I can't fault the Board for jumping on the opportunity to raise some capital but these raises tend to see the SP drift back towards the raise price.

 

[bk1]

Despite my preference for producers, i've taken a position on this junior explorer.
Tenements surrounding the Manna deposit that GL1 has just bought out from BRB.
Chairman invested to the tune of 6% of shares issued.
RC drill program looking for Au and Li...

 

[kenny]

No news expected until end of the year or Jan as the drilling at its Karonie tenement has only started last week.

Drilling will consist of 33 holes for 3,000-5,000 metres and will target 1,200 metres of strike length of the extensive system of pegmatites identified by field mapping and from detailed soil sampling completed recently.

The program is expected to take about three weeks to complete with first assays expected by December 2022.

I expect price softening as trading interest turns to more near term prospects elsewhere.

 

[bk1]

I think people are getting set or somebody knows something.
13 million by lunchtime today on a daily average of 17M shares.
consistent buying of late on no news that i can see.

 

[Dona Ferentes]

so why did ALY fall out of bed (taking @kenny with it)? Clearly not enough in yesterday's announcement to keep the punters around.

▪ First pass RC drilling testing multiple high priority lithium targets has been completed at the Karonie Lithium-Gold Project.
▪ Drilling intersected zones of pegmatites ranging from 1m to 27m in downhole thickness, confirming Alchemy’s interpretation of a substantial system developing at depth at Hickory and to the north under shallow alluvial cover.
▪ Pegmatites occur as multiple steep dipping stacked lodes defined in drilling over 700m strike beyond the previously mapped outcrops. The results extend mapped pegmatites in drilling and outcrop at Hickory to ~2km outlining a very significant zone of interest which remains open under cover to the north and west.
▪ All samples have been submitted to ALS Kalgoorlie. First results expected in December 2022