ABN 17 124 444 122
13 November 2009
VTEM IDENTIFIES THREE CONDUCTORS ON
ALCHEMY'S THREE RIVERS TENEMENTS
HIGHLIGHTS
VTEM survey data provided by Sandfire Resources identifies 3 conductors on
Alchemy's Three Rivers tenements
Helicopter-borne VTEM survey to commence immediately on the Narracoota
Formation across the southern and eastern portions of Alchemy's Three Rivers
tenements to test for more conductors
Alchemy to drill priority targets identified from field mapping and Sandfire
Resource's VTEM survey
Alchemy Resources Limited (ASX Code: ALY) (the "Company" or "Alchemy") advises that
data provided by Sandfire Resources NL ("Sandfire") has identified three significant
conductors extending from Sandfire's tenement westward onto Alchemy's tenements (Fig. 1).
The data was obtained by a Versatile Time-Domain Electromagnetic ("VTEM") survey
conducted by Sandfire over the Narracoota Volcanics on its tenement (E52/1715) located
directly east of Alchemy's tenements (Fig. 2).
The three conductors appear to be aligned with magnetic highs which extend approximately
7km into Alchemy's tenements. In particular, conductor 1 is co-incident with felsic volcanic
rocks mapped in September 2009 by Alchemy (Fig. 3).
In light of this information and the results of field mapping and rock chip sampling
conducted by Alchemy's geologists, the Company will today commence a helicopter-borne
VTEM survey across the Narracoota Volcanic Formation, which lies across the southern and
eastern portions of Alchemy's Three Rivers tenements (Fig. 4).
Alchemy is undertaking the VTEM survey to determine the presence of conductive bodies
associated with massive sulphide mineralisation containing primarily copper, but also with
the potential to contain gold, silver, zinc and lead.
The survey area spans the entire 30km strike extent of the Narracoota Formation within
Alchemy's tenements, known as the Magnus Copper/Gold Project, which includes the
recently identified target at the Wilgeena Mining Centre.
Previous field mapping by Alchemy identified a number of discrete felsic volcanic centres
that are not continuous across the Narracoota Formation. Alchemy considers the proximity
of felsic volcanic rocks with altered mafic volcanic rocks to be potential exploration targets.
18 Emerald Terrace
GPO Box 2815
T: +61 8 9481 4400
E: admin@alchemyresources.com.au
West Perth WA 6005
Perth WA 6001
F: +61 8 9481 4404
W: www.alchemyresources.com.au
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It is recognised that the majority of VMS (volcanogenic massive sulphide) deposits are
associated with bimodal volcanism where felsic and mafic volcanic rocks occur in close
proximity.
Analysis of rock chip sampling, conducted in September 2009, has confirmed the presence of
felsic volcanic rocks with anomalously high Barium values and highly altered mafic rocks.
Barium is a common element associated with VMS mineralisation.
The VTEM survey will be conducted by Geotech Airborne Pty Ltd at 100m line spacing and a
sensor height 30m above ground level. It is estimated that the VTEM survey will cover a total
of 1,795 line kilometres. The Company is confident that by flying the VTEM survey at such a
low level and at such close spacing it will eliminate the need for follow up ground
electromagnetic surveys.
Managing Director Michael Hannington said, "There are over 165kmē of Narracoota
Volcanics within the Magnus Copper/Gold Project alone. The VTEM survey should reveal
how far the Narracoota Volcanics extend across the entire southern portion of our Three
Rivers tenements and identify priority targets for follow-up drilling."
Alchemy intends to test drill the most prospective targets identified by the Sandfire VTEM
survey and its own field mapping as quickly as possible and to test drill targets identified by
its own VTEM survey when the results are obtained in the coming months.
ENDS
For further information contact:
Michael Hannington
Managing Director
Ph: (08) 9481 4400
Media: Tony Dawe 0413 322 110
History
Alchemy's Three Rivers tenements are directly west of, and adjacent to, Sandfire Resources
NL's tenements, which contain the DeGrussa and Conductor 1 copper-gold prospects.
Sandfire Resources NL has identified that the Narracoota volcanics is the prospective
stratigraphy which hosts those deposits. Historical mapping by the Geological Survey of
Western Australia ("GSWA") indicates that the Narracoota Formation continues into
Alchemy's tenements.
The information in this report that relates to Exploration Results is based on information compiled by Mr Michael
Cowin, who is a Member of the Australasian Institute of Geoscientists and is an employee of Cowin Holdings Pty
Ltd which consults to Alchemy Resources Limited. Mr Cowin has sufficient experience that is relevant to the
style of mineralisation, type of deposit under consideration and to the activity which he is undertaking to qualify
as a Competent Person as defined in the 2004 edition of the `Australasian Code for Reporting of Exploration,
Results, Mineral Resource and Ore Reserves'. Mr Cowin consents to the inclusion in this report of the matters
based on his information in the form and context in which it appears.
Figure 1. Aeromagnetic image with 750m strip of Sandfire VTEM survey superimposed
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Figure 2. Location of Magnus Copper/Gold Project at Three Rivers tenements
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Figure 3. Geologic mapping completed in September 2009 within Alchemy's Three
Rivers tenements with felsic volcanic rocks highlighted in yellow
Figure 4. Aeromagnetic image showing area of VTEM survey to be flown on Alchemy's
Three Rivers tenements
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Figure 5. - Three Rivers Project Location Map
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