Alchemy Resources Limited announced that a Reverse Circulation drill program is underway at the 100% owned Karonie Gold Project, located 110km east of Kalgoorlie. The drill program will include holes at Gilmore, which was targeted as a result of high-resolution magnetics and detailed mapping in 20211. Gilmore is located along a NE-striking fault corridor that intersects fractionated magnetic dolerites.

Historic RABdrilling was deemed ineffective and unable to penetrate the transported cover to test the basement geology, and the limited RC drilling was never followed up. The program is EIS co-funded, and Alchemy acknowledges the significant support from the Department of Mines, Industry Regulation and Safety. At Karonie East, infill drilling is planned both along strike, and at depth, of the previous aircore intercepts.

The recent aircore program successfully outlined gold in the saprolite horizon, and the current holes are planned to test for bedrock mineralisation below these zones and along strike. A single RC hole at KZ5 will test a historic untested electro-magnetic (EM) plate located along strike of the existing resource3. Mineralisation remains open to the north and the EM plate sits in the position now interpreted to represent the northern strike extent of mineralisation.

PHASE 3 REVERSE CIRCULATION DRILL PROGRAM (3,000m) - COMMENCED: Phase 3 of Alchemy's planned drilling has commenced and will consist of approximately 3,000-4000m of RC drilling to test multiple targets at Gilmore, Karonie East and KZ5. GILMORE PROSPECT: Gilmore is part of an EIS co-funded drill program which consists of the Gilmore and Western Brown targets (Western Brown is due to be drilled as part of the Phase 4 drill program in Q3CY22). The Gilmore target (Figure 2) is defined by a northeast trending fault corridor which disrupts a highly magnetic and fractionated dolerite package.

The target area has seen little effective drilling, with most of the historic RAB drilling at Gilmore not able to penetrate the transported cover to test basement geology. Alchemy has secured EIS co-funding for this target, which is seen as additional technical validation of its potential to host new discoveries in the region. Alchemy acknowledges the significant support from the DMIRS.

KARONIE EAST: Holes in this area (Figure 3) are designed to test a magnetic feature which runs along the northern zone over a 2km strike length. A NE trending structural dislocation trends through the prospect, and is interpreted to be a key control on mineralisation in the region. Assays from the recent aircore drill program returned numerous zones of anomalous gold (>0.1g/t Au) over a strike length of approximately 950m, with a best intercept of 2m @ 2.7g/t Au (48m) in KEAC009, including 1m @ 3.99g/t Au from 48m logged in saprolite².

RC drilling is designed to test the mineralisation in bedrock below these intercepts and along strike from this zone. KZ5: A single deep RC hole is planned for KZ5 to test a historically defined EM plate to the north of the existing defined resources. In mid-2021 Alchemy completed a drill campaign which was used to complete a maiden JORC compliant resource.

The geology at KZ5 was reinterpreted following the infill drilling and resource modelling, and the mineralisation is now interpreted to be offset to the north-west (vs north-south strike historically), with an EM Plate generated via a Moving Loop and Fixed Loop EM survey conducted in 19914 interpreted to represent an extension of the KZ5 mineralisation to the north.