Alchemy Resources Limited · ASX:ALY
Alchemy Resources — Investor Presentation (February 2020)
19 slides from Alchemy Resources's investor presentation, February 2020
Slide 1: Investor Presentation
Investor Presentation ASX: ALY February 2020
Slide 2: Alchemy Projects: Gold and Base Metal Focus
Alchemy Projects: Gold and Base Metal Focus KARONIE PROJECT 1165 km? of exploration ground » ALY 100% © Immediately along strike of Breaker’s o 1.1Moz Au Bombora deposit Surrounds Silver Lake’s Aldiss Mining Centre 590Koz Au resources BRYAH BASIN JV’s 488 km’ of exploration ground e Sandfire Base Me
Slide 3: Corporate snapshot: capital structure, shareholders and board
Listed on ASX Nov 2007 Cash (31 Dec 2019) $1.2m Shares on Issue (14 Feb 2020) 550.5m West Lynn SFR Drilling Commencement SFR Drilling Rights Karonie Drilling Karonie Drilling Results Issue Commencement Results Ni-Co Summervale Resource Al Resource Options - unlisted (ex. 2.5c – 12c) 27.0m Share Pric
Slide 4: Karonie: quality gold project east of Kalgoorlie
❑ Quality gold project in well established gold province 100km east of Kalgoorlie (794km2 granted) ❑ Surrounds Silver Lake’s Aldiss Mining Centre (mining ongoing) ❑ 38km strike of Claypan Shear Zone (Bombora host structure): ✓ fertile shear zone within a poorly explored greenstone belt covered by sh
Slide 5: 7 high quality gold targets
❑ 7 high quality gold targets (AC & RC drilling planned) ✓ Parmelia (initial drilling – 26m @ 1.6g/t Au from 83m) 1 ✓ KZ5 (initial drilling – 26m @ 1.3g/t Au from 125m) 1 ✓ Taupo (initial drilling – 10m @ 1.8g/t Au from 68m) 1 ✓ Gilmore ✓ Aldiss ✓ Esplanade ✓ Challenger ❑ Strike extensions of Karoni
Slide 6: Infill and extension drilling planned at Parmelia, Taupo & KZ5
❑ Infill and extension drilling planned at Parmelia, Taupo & KZ5 ❑ Parmelia and Taupo strike extensions of Karonie Mine Area deposits 460,000oz @ 2.1g/t Au 1 (Silver Lake Resources ASX: SLR) ❑ Parmelia: close to recent SLR Tank South discovery 2 17m @ 24.7g/t Au 24m @ 9.4g/t Au 14.9m @ 10.6g/t Au 9.
Slide 7: Parmelia and Taupo gold mineralisation open in all directions
❑ Parmelia gold mineralisation open in all directions ❑ Taupo gold mineralisation open in all directions ❑ Infill & extension RC drilling planned ❑ Infill RC drilling planned 7 Refer to Alchemy Resources Limited ASX announcement dated 9 December 2019
Slide 8: Overflow and West Lynn projects (NSW)
❑ Alchemy 51% - earning 80% interest by $0.4M spend before May 2021 ❑ Overflow Project ✓ Existing thick, high grade gold and base metal drill intercepts ✓ Drilling planned for 2020 ❑ West Lynn Project ✓ JORC inferred resources established 21.3Mt @ 0.84% Ni, 0.05% Co 1 6.6Mt @ 20.8% Al2O3 (HPA) 2 ✓ A
Slide 9: Cobar and Hera style deposits
Hera / Cobar-style Attribute Overflow ❑ Cobar and Hera style deposits - high grade, long life ❑ Polymetallic (Ag-Au-Cu-Pb-Zn) ✓ underground mining operations. ❑ Proximity to major structures ✓ ❑ Shear hosted ✓ Chlorite-silica alteration ✓ ❑ Hera style deposits are typified by lead-zinc rich upper ❑
Slide 10: High grade gold and base metal mineralisation open down plunge
❑ High grade gold and base metal mineralisation open down plunge ❑ Two holes testing down plunge extension of mineralisation planned Plan showing >1g/t Au grade shell, previous drilling and proposed drilling over satellite image Ref. Alchemy Resources ASX Announcement 30 January 2018 10
Slide 11: West Lynn inferred JORC 2012 resource
❑ West Lynn inferred JORC 2012 resource 21Mt @ 0.84% Ni, 0.05% Co* Deposit Cut Off Ore (Mt) Ni% Ni (t) Co% Co (t) Fe % West Lynn 0.6% Ni 14.7 0.85 124,962 0.05 7,360 20.2 Summervale 0.6% Ni 6.6 0.82 54,440 0.04 2,920 19.7 Total 0.6% Ni 21.3 0.84 179,291 0.05 10,280 20.0 ❑ Excellent correlation betwe
Slide 12: Positive initial metallurgical recoveries via DNi Process
❑ Positive initial metallurgical recoveries (87.1% for nickel and 86.9% for cobalt*) using nitric acid leach via the patented DNi Process™ ❑ West Lynn average Fe grade (20%) is ~half that of typical WA laterite deposits which facilitates atmospheric pressure nitric acid leach / standard solvent extr
Slide 13: Summervale inferred resource of 6.6Mt @ 20.8% Al2O3
❑ Summervale inferred resource of 6.6Mt @ 20.8% Al2O3* Deposit Cut Off Ore (Mt) Al2O3% Al2O3 (Mt) Fe2O3% TiO2% SiO2% Summervale 18% Al2O3 6.6 20.8 1.4 2.8 1.15 64 ❑ Mineralisation open in all directions ❑ Potential for grade increase with beneficiation of ore A– –A’ ❑ Up to 70% aluminium extraction
Slide 14: West Lynn infrastructure
❑ 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 (>2,000 p
Slide 15: Sandfire and Superior Gold joint ventures
❑ Sandfire Resources NL (ASX: SFR) Farm-in expenditure >$6M over the past year ❑ Joint Venture now formed with Alchemy’s 20% interest free carried to PFS, up to $5M to DFS, then 20% share of costs to production repaid from 50% of Alchemy’s share of profit 1 ❑ Superior Gold Inc. (TSX-V: SGI) Joint Ve
Slide 16: Bryah Basin follow-up drilling and DeGrussa VMS pathfinder
❑ Follow-up AC and RC drilling to focus on DeGrussa VMS Pathfinder Index (Phase 2 AC 400m drill line spacing) ❑ Significant gold intercepts to date include 1: 5m @ 6.4g/t Au from 100m* 5m @ 2.7g/t Au from 65m* 5m @ 2.0g/t Au from 65m* 5m @ 1.6g/t Au from 65m* 5m @ 1.1g/t Au from 45m* 5m @ 1.0g/t Au
Slide 17: Alchemy Activity Timeline & Newsflow
Alchemy Activity Timeline & Newsflow Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Sandfire drilling & results ✓ ✓ ✓ Overflow extension drilling commencement ✓ ✓ Overflow extension drilling & results ✓ ✓ Karonie RC drilling commencement ✓ Karonie RC drilling & results ✓ ✓ Karonie RA
Slide 18: Gold and Base Metal Potential; Nickel-Cobalt and HPA Value
❑ Gold and Base Metal Potential; ✓ Karonie Gold Project – quality drill targets, close to existing resources and processing infrastructure ✓ Overflow Project – Hera style high grade gold/base metal drill targets ✓ Sandfire Resources Bryah Basin JV – high intensity, fully funded base metal exploratio
Slide 19: Disclaimer
ABN 17 124 444 122 Disclaimer This presentation has been prepared by Alchemy Resources Limited (Alchemy or the Company). This document contains background information about Alchemy current at the date of this presentation. The presentation is in summary form and does not purport to be all inclusive
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