Highlights
- Highly prospective nickel-cobalt-alumina tenements covering 381km2 within world-class Nickel-Cobalt endowed Ultramafic Belt
- West Lynn Project maiden inferred JORC 2012 resource; 21.3Mt @ 0.84% Ni, 0.05% Co, 2.4% Al, 20.0% Fe, 12.9% MgO
- Summervale Prospect maiden inferred JORC 2012 resource; 6.6Mt @ 20.8% Al2O3, 2.8% Fe, 1.15% TiO2
- Good potential for Ni-Co and alumina resource expansion
- Good initial metallurgical recoveries reported using nitric acid leach (patented DNi Process™) for Ni-Co and standard HCl leach for alumina
- 99.95% High Purity Alumina (HPA) produced on first met sample without process optimisation
The West Lynn and Woodsreef projects contain two highly prospective nickel-cobalt tenements covering a 381km2. The West Lynn Project lies within a major north-south trending ultramafic belt that stretches from the ACT to the Queensland border and contains significant Ni-Co resources including NiCo Young (Jervois Mining Ltd), Sunrise (Clean TeQ Holdings Ltd), and Homeville (Collerina Cobalt Ltd) (Figure 1 & 2).
Figure 1: West Lynn Project, Woodsreef Project and other major nickel-cobalt deposits, NSW
Figure 2: Alchemy projects, major mines, Au / Cu mineral occurrences, and major structures over aeromagnetic image
West Lynn Nickel Cobalt Project (100km2)
The West Lynn Nickel-Cobalt-Alumina Project (EL8631) contains a JORC 2012 edition inferred resource of 21.3Mt @ 0.84% Ni, 0.05% Co, 2.4% Al, 20.0% Fe, 12.9% MgO (refer to Alchemy Resources Limited ASX announcement dated 19 February 2019), and a JORC 2012 edition inferred resource of 6.6Mt @ 20.8% Al2O3, 2.8% Fe2O3, 1.15% TiO2 (refer to Alchemy Resources Limited ASX announcement dated 19 June 2019).
Discerning features of the West Lynn Project include:
- Mitchell Highway runs through the tenement
- 7km from Nyngan railway line (linked to Sydney & Newcastle)
- Summervale 3km from Nyngan- Bourke power line
- West Lynn 7km from Nyngan-Cobar power line
- 7km from Bogan Weir water pipelines (fed by Macquarie River)
- 12km from Nyngan township (labour – just over 2,000 people)
- Native Title Exempt Freehold Land
Discerning features of the West Lynn Ni-Co resource include:
- Good potential for expansion of the current Ni-Co resource along and across strike (Figures 3 & 4)
- Good initial Ni-Co metallurgical recoveries reported using nitric acid leach (patented DNi Process™)
- DNi process provides potential for atmospheric leach / standard solvent extraction for Ni-Co-Al avoiding high upfront capital expenditure
- Advantages of the DNi nitric acid process over normal sulphuric acid leaching include:
- efficient acid recycling (>95%),
- bpotential MgO by-product (for fertiliser), and
- benign tailings product
Discerning features of the West Lynn Ni-Co resource include:
- Good potential for expansion of the Summervale alumina resource along and across strike (Figures 3 & 4)
- Good initial alumina recoveries using a standard HCl leach
- 99.95% HPA produced on first met sample without process optimisation
- Good potential for process optimisation at leaching and heat treatment stages
Figure 3: West Lynn, Nyngan and Homeville Projects
Figure 4: West Lynn and Summervale drilling (coloured by Ni %) over aeromagnetic image (right), and Ni-Co resource outlines (black shading) and alumina-rich kaolinite layer outline (above Ni-Co resource) over geology (left)
Figure 5: West Lynn drilling (coloured by Ni %) and Ni-Co resource outlines (black shading) over aeromagnetic image
Figure 6: Summervale drilling (coloured by Ni %), Ni-Co resource outline (grey) over aeromagnetic image
Figure 7: Summervale drilling (coloured by Al2O3%), alumina resource outline above Ni-Co resource (red) over aeromagnetic image
Figure 8: West Lynn cross section
Figure 9: West Lynn cross section
Figure 10: Summervale cross section
Figure 11: Summervale cross section
Competent Person’s Statement
The information in this report that relates to Exploration Results is based on information compiled by Mr Leigh Ryan, who is the Managing Director of Alchemy Resources Limited and holds shares and options in the Company. Mr Ryan is a Member of the Australian Institute of Geoscientists and has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (‘JORC Code 2012’). Mr Ryan consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to Mineral Resources at the West Lynn Nickel-Cobalt-Alumina Deposit is based on information compiled by Stephen Godfrey, who is an employee of Resource Evaluation Services Pty Ltd, a consultant to Alchemy Resources Limited. Mr Godfrey is a Fellow of the Australasian Institute of Mining and Metallurgy and a member of the Australian Institute of Geoscientists, and has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (‘JORC Code 2012’). Mr Godfrey consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
Woodsreef Nickel-Cobalt-Copper-Gold Project (281km2)
Exploration licence application (EL8711) is located 35km north of Tamworth, NSW, and covers an area of 281km2 within the New England Fold Belt. The licence encompasses a 34km long section of the Peel Fault, which is recognised as a regional thrust system that hosts intrusive serpentinites and separates the Woolomin Beds and Permian granites to the east from the Tamworth Belt to the west. The principal targets in the region are vein hosted orogenic gold and copper mineralisation hosted by silica-carbonate altered serpentinites located on or adjacent to the Peel Fault, and cobalt, chromite, platinoid, and nickel sulphide targets associated with composite/layered ultramafic intrusives within the licence.
Many old gold and copper occurrences exist within the area (Figure 12), and previous rock chip sampling by Serpentine Minerals NL within the licence area has returned anomalous nickel values up to 0.77% Ni and copper values up to 3.4% Cu (refer to DIGS report R00024733). Some significant Co-Ni soil anomalies have been generated in the northern part of the licence that warrant drilling (Figures 12, 13 & 14), along with various other Co-Ni and gold in stream sediment sampling anomalies in the southern and central areas respectively (Figures 12, 13 & 14). No previous drilling has been conducted within the licence area. The licence is located over sparsely populated freehold farm land.
Figure 12: Woodsreef Project (EL8711) exploration targets (Au-Cu-Ni-Co), known Cu and Au occurrences, and interpreted structures over regional Govt. geology
Figure 13: Woodsreef Project (EL8711) exploration targets (Au-Cu-Ni-Co), known Cu and Au occurrences, and interpreted structures over regional Govt. geology
Figure 14: Woodsreef Project (EL8711) Ni-Co-Cu stream sediment and rock chip sampling results
