Ann: Karonie RAB Drilling Results, page-22

Ok, that's Dragon and Manhatten and the CSZ for the time being. Monitor BRB in the meantime!

Hermes South up in/near the Bryah Basin where ALY is teamed up with Billabong/Superior has recently (26/3) surprised one and all with the 9m @ 9.3g/t au news from WGDC006.

'As part of the preparation for an updated resource model for Hermes South, Billabong conducted a review of the existing diamond drill core from Hermes South in order to obtain accurate specific gravity measurements. This work identified a number of geotechnical holes (WGDC series) drilled by Alchemy Resources immediately prior to entering the Bryah Basin farm-in and joint venture agreement which had not been sampled and analysed (Figure 2)........Holes WGDC003, 4, and 5 are also being sampled for analysis.'

The MD says: “This high grade intercept highlights the need for more drilling in order to potentially expand the existing resource in this very prospective area.”

'The Bryah Basin farm-in and joint venture arrangement with Billabong/Superior allows B/S to earn up to 80% in Alchemy’s interests in the tenements through earn-in exploration expenditure of $1.2M within three years. Upon fulfilment of the earn-in expenditure, Alchemy’s interest is carried on an interest-free deferred basis to production, with Alchemy to repay the deferred amount from 50% of its share of free cash flow from production following commencement of mining. The Billabong Gold JV currently includes a JORC 2004 Indicated Resource of 87,373 ounces of gold (1.36Mt @ 1.99g/t Au) at the Hermes South / Wilgeena Prospect...............................Superior Gold are planning further drilling in order to determine the potential for the prospect to become a second open pit and part of the production profile for the Plutonic Gold Operation. The prospect and resource is strategically located and can be readily serviced by extending the existing Hermes haul road. The preliminary resource will be included in Superior’s reserve and resource update for the Plutonic mine, which is expected to be released early in the second quarter of 2018.

Watch this space!!

So, Hermes South/Wilgeena, has a new lease of life it seems. This is just 1 of the arrows that ALY has in its quiver:

1. Wilgeena/Hermes South gold (farm-out/jv with Superior Gold).

2. Bryah basin base metals (farm-out /jv with IGO).

3. Karonie gold (100%)

4. Lachlan belt NSW, now expanded to include nickel and copper as per 13/4 ann (farm-in with Heron Resources).

And all of this and the MC is a lowly $5.8m.