Perth, June 10, 2009 AEST (ABN Newswire) - Alchemy Resources Limited (ASX:ALY) has discovered two new high-grade gold zones at its Hermes Gold Project on granted mining lease M52/685 located 60 kilometres southwest of the Plutonic Gold Mine in Western Australia's Gascoyne district. The Hermes Gold Project forms part of Alchemy's Three Rivers Gold Project.

Reverse circulation (RC) drilling by Alchemy discovered high grade gold zones at shallow depth west of the known Hawkeye and Trapper deposits, whilst another high grade gold zone was discovered at depth at the Trapper deposit.

RC hole TRC236, drilled to test gold mineralisation to the west of the known JORC-compliant 1.7Mt indicated gold resource, intersected three zones of gold mineralisation. Best results include;

- 8m @ 2.0 g/t Au from 21m (including 1m @ 5.6 g/t Au);

- 5m @ 34.0 g/t Au from 34m (including 1m @ 118.2 g/t Au & 1m @ 16.1 g/t Au); and

- 7m @ 5.5 g/t Au from 113m (including 1m @ 15.4 g/t Au).

RC hole TRC247 drilled into the Trapper deposit intersected 8m @ 10.3 g/t Au from 156m including 1m @ 64.9 g/t Au.

Alchemy Managing Director, Michael Hannington said, "Alchemy's first drilling program at the Hermes Gold Project has discovered two new high-grade gold zones and highlighted the potential for further high-grade mineralisation outside the current extent of the Hawkeye and Trapper deposits. The tenor of the high-grade mineralisation at the Hermes Gold Project is very similar to the mineralisation at Barrick Gold Corporation's Plutonic Gold Mine."

The Hermes Gold Project is situated in the southwest of the Marymia Inlier, a raft of Archaean age rocks separated from the Archaean Yilgarn Block, which hosts the majority of Western Australia's gold deposits. The Marymia Inlier is host to the Plutonic and Marymia Gold Mines in the northeast, developed by Barrick Gold and Resolute Resources Ltd.

Alchemy's recent drilling program consisted of 12 RC drill holes for a total of 1931m and 52 aircore drill holes for a total of 2424m. The drilling results confirmed that the mineralisation at the Hermes Gold Project is similar to the gold-hosting mineralisation at the Plutonic Gold Mine, located 60 kilometres to the northeast of the Hermes Gold Project. The drilling program has also identified previously unrecognised ultramafic rocks which form an important host to gold mineralisation within the Marymia Inlier.

The Hermes Gold Project includes the existing JORC-compliant, open pittable, indicated resource of 1.7Mt @ 2.4g/t gold, equating to 131,000 ounces of contained gold. The drilling results will provide Alchemy with the impetus to accelerate development of the known deposits and incorporate the recent drilling data into a re-estimation of the JORC-compliant indicated resource.

Alchemy purchased 100% of the Hermes Gold Project from Troy Resources NL in July 2008 and since then has re-evaluated all information covering the Project. Alchemy's success in intersecting high grade gold mineralisation is the result of careful geological targetting and planning.

Alchemy Managing Director, Michael Hannington said, "Alchemy commenced drilling at the Hermes Gold Project on 6 May 2009 and has managed to drill and report results in just over a month. These results validate our decision to acquire, and our ambition to fast-track the development of, the Hermes Gold Project".

Significant Drilling Results from Hermes Gold Project
------------------------------------------------------------------Sample    East    North  From  To  Down Hole  Grade   Including                                   Interval  No     MGA94   MGA94   (m)   (m)   (m)     (g/t Au)  (g/t Au)------------------------------------------------------------------TRC236  691383  7168721   21    29    8        2.0    1m @ 5.6                          34    39    5       34.0    1m @ 118.2                         104   112    4        3.2    4m composite                         113   120    7        5.5    1m @ 15.4TRC237  691284  7168679   86    88    2       18.7    1m @ 22.7TRC238  691756  7168972  138   143    5        3.8    1m @ 11.8TRC243  691723  7169335  128   131    3        3.1    1m @ 5.4                         159   162    3        6.5    1m @ 9.9TRC244  691701  7169314  132   136    4       12.2    1m @ 31.7TRC247  691805  7169036  156   164    8       10.3    1m @ 64.9------------------------------------------------------------------

All assay results reported using Aqua Regia digest with an ICPMS finish. Follow up Fire Assay method assays will be completed on all assays that graded > 0.5g/t Au.


Michael Hannington
Managing Director
Tel: +61-8-9481-4400

ABN Newswire
ABN Newswire This Page Viewed:  (Last 7 Days: 12) (Last 30 Days: 49) (Since Published: 9470)