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Alliance Resources Wilcherry Picking Gold and Tin

Thursday, April 20, 2017

THE INSIDE STORY: In 2016, Alliance Resources’ (ASX: AGS) search for a flagship project culminated in the acquisition of 51 per cent of the Wilcherry project Joint Venture with Tyranna Resources (ASX: TYX).

The Wilcherry project is located within the Gawler Craton in the northern Eyre Peninsula in South Australia.

“We acquired direct equity of 51 per cent in a JV with Tyranna Resources, which wished to retain equity in the project,” Alliance Resources managing director Steve Johnston told The Resources Roadhouse.

“We gained access to the Wilcherry assay data base and, all these gold results kept popping up at Weednanna.”

Alliance has developed a two-pronged approach to the target, the first testing the gold potential of the Weednanna project, the most advanced gold prospect in the Wilcherry project area.

Previous owners identified a gold-in-calcrete anomaly coincident with a NNW-trending magnetic anomaly and gold mineralisation associated with skarn alteration and brecciation, however, the geological distribution of the gold was poorly understood.

Alliance re-logged all available RC chips and diamond core from Weednanna, designing an RC drilling program to test the strike, dip, and plunge continuity of three possible high-grade gold mineralised shoots referred to as Targets 1, 2 and 3, completing a total of 24 RC holes.

“This was our first drilling program at the project and we basically focused on the previously identified high-grades to see what we could find there,” Johnston said.

In the first three target areas some 15 of the 24 holes Alliance drilled returned highly-encouraging results including:

At Target 3

14 metres at 36.1 grams per tonne gold from 118m, including 5m at 95.6g/t gold from 120m; and

7m at 7.4g/t gold from 147m, including 1m at 40g/t gold from 149m.

3m at 5.5g/t gold in hole from 144m.

3m at 3.1g/t gold from 84m.

Intercepts at Targets 1 and 2 returned:

49m at 6.3g/t gold from 45m, including 21m at 10.7g/t gold from 48m.

2m at 61.1g/t gold from 167m.

10m at 6.8g/t gold from 79m, including 3m at 15.5g/t gold from 81m.

7m at 11g/t gold from 82m, including 4m at 17.6g/t gold from 84m.

1m at 20.5g/t gold from 120m.

1m at 16.2g/t gold from 99m.

Thirteen out of 16 holes from Targets 1 and 2 reported intercepts greater than 1g/t gold.

“The gold intercepts were amongst the best grades reported from Weednanna and highlight the mineral potential of the prospect,” Johnston said.

“We couldn’t have hoped for better results and what we have learned, at this stage, is that the overall low-grade envelope of the deposit, spread out over approximately 1.3 kilometres in strike, has these high-grade patches.

“We feel that past explorers didn’t really focus enough attention on the high-grades and think some of the high-grade mineralisation is running at a shallow angle to the original east-west drilling sections.

“Next time we drill we will turn the rig around from the north to drill these high-grade targets and hopefully get a much better understanding as we try to model the deposit in the hope of establishing enough tonnes to form an operation.”

Alliance’s second Wilcherry prong came in the form of a further data set it received as part of the JV for base metal potential.

This was augmented by a Heli-EM survey that produced several potential conductors, one of which is proximal to 2012 tin intercepts at Zealous, and another at the historic zinc-lead-silver prospect at Telephone Dam.

The MLEM survey confirmed the presence of weak bedrock conductors consistent with data from a previous helicopter electromagnetic (HEM) and at Telephone Dam clearly confirmed the presence of weak bedrock conductors consistent with the HEM anomalism.

“A ground MLEM survey validated the targets giving us five holes to be drilled at Zealous and three at Telephone Dam,” Johnston said.

“We will be drilling this before Weednanna, as we feel that if we hit something interesting with these holes we expect the base metals would provide the company with a greater initial push than the gold.

“Weednanna is an outstanding development opportunity and is the company’s gold focus, but there are also some wonderful historic tin results at Zealous that we need to pursue.”

Alliance Resources Limited (ASX: AGS)
…The Short Story

Suite 3
51 - 55 City Road
Southbank, VIC, 3006

Ph: +61 3 9697 9090

Ian Gandel, Tony Lethlean, Steve Johnston