A scoping study for a new gold project at Wilcherry, 40 kilometres north of Kimba, is expected to begin before the end of the year.
While addressing the first day of the two day Paydirt 2018 South Australian Resources and Energy Investment Conference in Adelaide last month, Alliance Resources Limited managing director Steve Johnston said the company was looking to evolve a maiden mineral resource estimate in preparation for the project.
“Wilcherry is a high grade shallow gold system under thin cover and is largely under-explored,” Mr Johnston said.
“It does however, offer early real growth potential as 13 of the gold shoots at the Weednanna prospect are all open in at least one direction and there is potential for new gold shoots along strike and at depth.”
“A major new mineralised quartz vein has also been identified although this will not form a part of the maiden mineral resource estimate.”
He said if the outcomes of both of these work streams were positive it would into a scoping study in the second half of this year.
The company has metallurgical test work underway to optimise gold recovery which will help finalise process design criteria for Wilcherry’s mineralisation.
Alliance Resources is also eyeing other nearby potential gold resources as there is more than 25 kilometres of strike in under-explored iron formations within 10 kilometres of Weednanna.
Further drilling is to be undertaken on the Wilcherry site within the next month.
Initial Alliance Resources holes have graded up to 56 grams per tonne of gold.
Alliance Resources entered into the Wilcherry Gold Project Joint Venture with Tyranna Resources in October 2016.
The Wilcherry project is a joint venture between Alliance Resources and Tyranna Resources with Alliance Resources sole funding $3.2 million of new work to potentially move up to 83.6 percent project ownership.