drilling started 16 october 2012, page-5

Pete01

"The real question is will this round drive a great find in the next??"

I'm no geo, but I think they might just be onto something. Certainly feel more confident after this current report. If there is a geo invested or watching this stock, would appreciate a comment.

"The very strong conductor (DVT-07), located in the Bullgullan Bore area (Figure 2), is a distinct, highly conductive unit and is considered to be highly prospective. Modelling of the conductor indicates that it is at approximately 200m depth and shallow dipping to the southwest. The position of the conductor coincides with a localised copper-zinc-cadmium-gold surface geochemistry anomaly."

"Nearby outcrops of Narracoota volcanic rocks are intensely altered and show similarities to host rocks in the Horseshoe Lights area."

"Conductor DVT-07 represents a high priority target with drill testing scheduled for early 2013 following receipt of statutory approvals."

"The aircore drilling program aimed to identify secondary/oxide copper-gold anomalism within the weathered profile that will allow better delineation of primary sulphide targets to be tested by deeper RC drilling. Previous work has demonstrated strong base metal and pathfinder depletion in the transported cover and/or upper 10 to 15 metres of strongly weathered rock.

It is significant to note that Sandfire Resources’ DeGrussa copper-gold mine was discovered by the recognition of surface geochemical anomalies enriched in gold and strongly depleted in copper."

"Strong pathfinder anomalism, including antimony, arsenic, cobalt, manganese, molybdenum, thallium and zinc, forms a broad zone along the basal part of the prospective Narracoota volcano-sedimentary sequence and upper part of the underlying Karalundi sedimentary sequence. This broad horizon is interpreted as in the analogous position to the DeGrussa copper-gold deposit and represents a priority zone for further targeted drill testing."

"A second horizon, with strong barium anomalism, is positioned along the upper contact of the Narracoota sequence with the overlying Ravelstone sedimentary sequence. This horizon is interpreted to be in an analogous position to the mineralised sequence in the Horseshoe Lights area to the northwest."

"Targets from Surface Geochemistry

A comprehensive review of the Alchemy’s surface geochemistry over the Bryah Basin project area has been completed by globally-recognised geochemical consultant, Scott Halley.
The review resulted in delineation of a significant new copper anomaly that has not been drill tested (Figure 1). Base metals, including copper and zinc, are highly mobile in the weathering profile and delineation of residual anomalies required normalising of copper and zinc against the least mobile transition metal. This method takes into account the secondary mobility and enrichment of transition metals, such as iron, manganese, scandium, indium and vanadium, in weathered rock. The area of copper anomalism corresponds with the basal part of the prospective Narracoota volcano-sedimentary sequence, in an analogous position to the DeGrussa copper-gold deposit."