DECEMBER 2014
Quarterly Activities Report
HIGHLIGHTS
HORSE WELL GOLD PROJECT
• Doray Minerals Limited continues active exploration under a $4M Farm-in Agreement over 3 years.
• RC drilling at the Dusk til Dawn prospect continues to define gold mineralisation within a major structure;
- DDRC01, 65m @ 2.60 g/t Au from 50 metres
• Five new deep RC holes completed at Dusk til Dawn in
December/January.
• Air-core drilling at Dusk til Dawn locates high grade gold on structure north-west of RC drilling;
- DDAC054, 4m @ 12.7 g/t from 62 metres
New zone located 250m west of main structure;
- DDAC062, 8m @ 1.29 g/t from 44 metres
• Regional air-core traverses locate anomalous gold mineralisation within and on the margin of the Crack of Dawn granite and the T-06 de-magnetised target.
MARTINS WELL PROJECT
• The Company has accepted an offer of grant for a new 848 km2 Exploration Licence in South Australia. The Licence covers a silver-gold-copper gossan that outcrops over 2 strike kilometres.
BARRYTOWN PROJECT
• Conditional $300,000 Sale Agreement with JV Partner executed and initial $100,000 sale of 80% of project settled.
CORPORATE
• Non-renounceable rights issue completed raising $316,999.
Activities undertaken on the Company's projects during the September 2014 quarter were centred on exploration at the Horse Well Gold Project where Joint Venture partner Doray Minerals Limited continued drilling programs as part of their first year non-withdrawal commitment of $900,000 in exploration funding.
The Company has selected the Martins Well Project for exploration in 2015 following an extensive review of new exploration project opportunities.
HORSE WELL GOLD PROJECT
Farm-in partner Doray Minerals has continued to actively explore the project during the quarter, with completion of the initial approved program and then infill drilling of anomalous areas with both RC and Air core drilling.
The following has been largely reported by Doray within their December Quarterly Report, with further comments provided by Alloy to clarify progress or the interpreted significance of results.
COMPLETED EXPLORATION
Dusk til Dawn RC drilling
Follow-up RC drilling targeted the structure between holes ACDD001 and DDAC054 with two holes drilled towards the south west (azimuth 225 degrees), aiming to intersect the interpreted Dusk til Dawn mineralised shear structure at right angles for the first time (Figure 1).
DDRC001 intersected a wide zone of alteration and mineralisation and returned 65m @ 2.6g/t Au from 50m, including a zone of high-grade gold in oxide material which returned 13m @ 8.17g/t Au from 50m (Figure 2.).
DDRC002, collared approximately 50m to the NE of DDRC001, intersected the Dusk til Dawn shear approximately 55m down dip and returned 21m @ 0.7 g/t Au from 140m.
High-grade gold mineralisation has so far been confirmed from DDAC054, at the northern end, towards ACDD001, ACDR002 and 003 at the southern end with the NW-SE trending mineralised structure interpreted to continue further along strike in both directions and at depth.
Follow-up RC drilling commenced before Christmas and was completed in late January. A total of five deep RC holes to depths of between 180 metres and 280 metres for a total of 1,210 metres were drilled to intersect the north-west trending mineralised structure from approximately 50 metres NW of anomalous hole DDAC 054 to 75 metres south east of ACDR003, a strike length of 300 metres
Locations for RC and other drilling are constrained due to limits of Heritage cleared areas. Planning of heritage clearances for the 2015 exploration programs are underway with the Native Title holders to access additional areas at Dusk til Dawn as soon as possible.
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