Ann: Alchemy Commences Drilling at Overflow, page-9

ALY has good medium to long-term prospects. It has 4 irons in the fire, each of which is a potential winner.

1. Farm-out with NST of gold at Wilgeena etc. Slow burner though. Keep an eye on what Billabong Gold does though. It is the senior partner now, having bought Plutonic from NST. Leroy on LSR said yesterday that the company has just listed on the Toronto SE and has a MC of $105m. Progress at Plutonic is the key here.

2. Farm-out with IGO of base metals at Neptune etc. Another slow burner. Just have to keep an eye on IGO's progress, but usually (as with Billabong) ALY only gets news from IGO within 1 month of the end of each quarter. The interesting thing to keep an eye on here is Sandfire's acquisitions of tenements in this general area. These acquisitions in the middle and west of the Bryah Basin only started late last year. Have a look at the map on the latest SFR Preso. What's up Karl (Simich)!! SFR Has taken a liking to this area. That's a boost for IGO/ALY, and also for RNI

3. Newish farm-in with Heron in NSW where ALY runs the show. The prospects here look good. Monitor the progress of the latest drilling and then the DHEM to follow. No great hurry there though, but the assays could surprise. However, what would surprise would be no mineralisation. They would have a pretty good idea as to what's there I'd say. The Lachlan Belt is fertile, so expect something good here down the track with at least one of the tenements.

4. Solo at Karonie which looks to be a very prospective site for a gold deposit. We just have to wait a bit though for all tenements to be put in ALY's name. The neighbour to the north, Breaker Resources (BRB), is making excellent progress with its gold exploration there. Keep an eye on that as there could be a geological connection with Karonie.

NST owns just under 15% of the issued shares. This arose in early 2015 with the farm-in and purchase of Hermes from ALY. Its presence gives ALY some gravitas.