Geological and Structural Setting

The Jeffery Well Project comprises Exploration Licence E20/507, which was granted on 4 June 2009. The tenement covers approximately 83km² along a narrow section of the Meekatharra-Wydgee greenstone belt, comprising northeast-southwest trending basalts, dolerites and intermediate volcanics with lesser felsic volcanics and volcaniclastic sediments. Minor ultramafic and banded iron formation is intercalated with the mafic sequences.

The Chunderloo Shear Zone, a kilometre-scale, north-easterly trending structure, runs through the tenement. The Cuddingwarra Shear Zone, which hosts the Cuddingwarra gold camp to the south west, intersects the Chunderloo Shear Zone in the centre of the tenement. The western margin of the greenstone sequence is defined by a Low-Calcium composition granite, whilst the eastern contact of the tenement is intruded by the circular, post-folding, Tuckanarra post-tectonic granitoid. A variably thick, complex soil cover (including up to 50m of transported soil) covers more than 80% of the prospective greenstone stratigraphy. Outcrop is common in the western part of the tenement, occurring as rugged hills and ranges.

Gold Mineralisation and Planned Exploration

The thick soil cover has hindered past explorers who have concentrated efforts on areas of exposed bedrock and shallow soil cover. Several gold anomalies exist including;

• a 4km long gold-arsenic anomaly at the “Limestone Well Prospect” in the southwest

• significant gold-arsenic mineralisation open at depth at the “Sarus Prospect” in the north

• significant rock-chip anomalism and gold mineralisation at the "Stringer Prospect" in the east

Alchemy’s exploration focus is for ductile shear-zone hosted mineralisation in ultramafic units sheared into splays off the Chunderloo and Cuddingwarra Shear Zones and for brittle narrow ore shoots within dolerites or tholeiitic basalt within the mafic package that wraps around the post-tectonic Tuckanarra granite. Alchemy has recently acquired reprocessed aeromagnetic data and will undertake a structural interpretation in conjunction with geological mapping and soil and rock geochemical sampling in 2010 and model the data in the Murchison 3D model to define drill targets.