The West Perth-based Alloy Resources Limited (ASX: AYR), established in 2004, explores and evaluates mineral properties. The companys basket of projects includes the Horse Well Gold Project, located in the Warburton Mineral Field and the Ophara Cobalt Gold Project in the west of Broken Hill in New South Wales, Australia.
On March 13th, the company released an update on the ongoing exploration activities at the Horse Well Gold Project Joint Venture, where it holds 51% interest and 60% earning rights. Besides, the company is also sole funding the exploration as of now. Alloy Resources has commissioned Trepanier, an independent consulting group to complete the new Mineral Resource estimates for gold mineralisation at the two advanced prospects of Warmblood and Dusk till Dawn.
Alloy Resources Limited has a market cap of ~ AUD 3.15 million as of date, with ~ 1.58 billion outstanding shares. With the end of trading on March 13th, the AYR stock closed at AUD 0.003, skyrocketing by 50%.
For the Warmblood prospect, the drilling has been completed on a nominal 40-metre by 20-metre pattern to a maximum vertical depth of 100 metres. The majority of the identified mineralisation is constrained to two sub-parallel mylonitic silicified zones, that are weathered and transitional. Besides, the limited drilling at depth in fresh rock delivered some high-quality intersections such as 3m @ 10.95 g/t Au from 89 mdh in hole AHWR068, and 15m @ 5.34 g/t Au from 83 mdh in hole AHWR069. Going forward, the petrographic studies of these zones will also be conducted.
The drilling at the Dusk till Dawn prospect has also ended on a nominal 50-metre by 40-metre pattern to a maximum vertical depth of about 220 metres. The results suggest that mineralisation constrained to a broad moderately north-east dipping 40-metre shear zone that opens to the south east. Also, the majority of defined mineralisation is in the fresh rock within a large pyritic envelope. The intersections delivered include 65m @ 2.6 g/t Au from 50 mdh in hole DDRC001, and 16m @ 7.2 g/t Au from 109 mdh in hole DDRC014.
During the quarter ended December 31st, 2018, the Initial infill air-core program at the Big Daddy prospect confirmed a broad supergene gold anomaly interpreted to span 8 km north within wide spaced drilling. In addition, the company also entered into a Farm-In and Joint Venture Agreement with Rio Tinto Exploration Pty Limited (RTX) that would enable RTX to explore and earn a majority interest in the Companys exploration licence over Paterson region of Western Australia.
According to the agreement, RTXs initial earn-in commitment required spending a minimum of $ 133,000 within 12 months and is obligated to maintain the tenement prior to any withdrawal. Subsequently, RTX shall earn a 70% interest by spending ~$ 500,000 and accomplishing at least 500-metre drilling within three years of period.
As per the recently released quarterly results, there were net cash outflows from operating activities to the value of AUD 512K primarily due to payment for exploration, evaluation and corporate expenses. On the contrary, the financing activities contributed to cash inflows of AUD 414K resulting from the proceeds from issues of shares. At the end of the period, the net cash and cash equivalents stood at AUD 536K.
This article provided by NewsEdge.