049439fb-a811-45ef-bf28-cb522e1fdf92.pdf
December 2015
Quarterly Activities Report
ABN 20 109 361 195
ASX Release
29 January 2016
Alloy Resources Ltd Suite 6, 7 The Esplanade Mount Pleasant WA 6153
Tel: +61 8 9316 9100
Fax: +61 8 9315 5475
Email:
[email protected]
Website:
www.alloyres.com
Directors
Executive Chairman:
Andy Viner
Non-Exec Director
Andre Marschke
Non-Executive Director/Co Sec:
Kevin Hart
Issued Capital Shares: 592,707,646
Unlisted Options:
9,000,000
ASX Symbol: AYR
HIGHLIGHTS
HORSE WELL GOLD PROJECT - W.A
-
Farmin partner Doray Minerals Limited actively committed to exploration during the quarter and Doray have now earned a 60% interest in the project and Alloy is funding its 40% interest.
-
Doray completed an air-core drill program of 241 holes for 14,740 metres over the Crack of Dawn area in the northern part of the Horse Well Project.
-
The drilling was extremely successful in highlighting several prospective areas with extensive coherent
+100ppb Au anomalism.
-
Of particular note was results returned from drilling at the major T-06 magnetic anomaly which has been renamed the Django Prospect, where two coherent trends have been delineated;
-
One covering an area of 1.5km x 250m with a best result of;
22 metres @ 1.4 g/t Au from 36mdh, including
8 metres @ 4.2 g/t from 48mdh
-
A second parallel trend covering an area of 3km x 200m
-
Gold mineralisation occurs as a supergene blanket overlying probable bedrock hosted mineralisation.
-
A number of other emerging mineralised trends are present adjacent to Dusk til Dawn and south and west of the Crack of Dawn prospects.
CORPORATE
-
The Company completed a placement to raise $700,000 before costs through a new share issue. Bell Potter Securities Limited acted as Lead Manager to the Placement.
-
The Company continues to maintain a low cost base to meet the current market conditions
.
September 2015 Quarterly Report Alloy Resources Limited Page 1 of 10
HORSE WELL GOLD PROJECT
Farm-in partner Doray Minerals Limited ('Doray') completed a large regional air-core drill program at the project during the quarter, following which the $1 million second stage Farm-in expenditure to earn a 60% interest in the Horse Well project (Figure 1) was completed.
The Company will be contributing its 40% interest of exploration expenditure during the $2 million stage 3 Joint Venture commitment during the 2016 calendar year.
Figure 1 Horse Well location on regional geology
COMPLETED EXPLORATION
Joint Venture partner Doray Minerals Limited has completed the following activities during the quarter;
-
Completed a substantial air-core drill program of 241 holes for 14,740 metres over the northern Crack of Dawn area of the Project (Figure 2).
-
Assessed results and planned for extensive new drill programs for the March and June quarters of 2016.
Figure 2 Horse Well Project - December Quarter regional Air-core drill hole location map
Drill Program
The drilling was designed to be systematic in order to define geochemical trends within interpreted geological target areas. In particular the programs tested for;
-
A potential footwall zone at Dusk 'til Dawn.
-
Additional 'look-alike' conceptual targets to Dusk 'til Dawn, and
-
The "Django" prospect (formally the "T-06" target) that has returned anomalous gold results from a single line of air-core drilling carried out by Doray in FY 2015.
Drill Results
Drilling was generally completed on a 400 metre by 100 metre pattern, and some infill along lines to 50 metre spacing. This density is normally sufficient to show sub-surface geochemical trends in areas where transported cover precludes surface soil sampling.
Django Prospect
The key result from the drill program was the definition of extensive +100ppb Au gold anomalism in two coherent trends at the Django prospect. Previously, 1.6 km spaced lines had indicated that strong alteration and some gold anomalism existed in the area, and the latest drilling has now confirmed the presence of two parallel trends as shown in Figure 3.
Figure 3 Django Prospect - aircore drilling anomalism and significant intercepts over 1vd aeromagnetics
The defined trends appear to correspond very well to a prospective structural corridor and an associated demagnetised zone (possibly representing a large alteration halo) interpreted from airborne magnetics. The western trend extends over a strike length of at least 1.5km and a width of 250 metres.
Figure 4 shows a cross section, A-B, through hole HWAC 112 (22 metres @ 1.4 g/t) and illustrates how anomalism at Django forms a consistent 'mushroom' at the redox front within the weathering profile, which could be resulting from supergene processes above bedrock hosted gold mineralisation.