Alchemy Resources Limited (ASX:ALY) has released a maiden resource estimate totalling 21.3 million tonnes at 0.84% nickel, 0.05% cobalt, 2.4% aluminium and 20% iron at the West Lynn project in NSW.
The estimate was completed by Resource Evaluation Services (RES) and follows an intensive three-phase drilling campaign completed by Alchemy in 2018.
The drilling program comprised 178 holes for 8,646 metres in line with the company’s exploration target.
Mineral resource estimate results
The estimate is reported at a 0.06% nickel lower cut-off as shown in the table below:
Nickel-cobalt mineralisation at West Lynn is flat-lying and linked with variably lateritic clay, saprolite and weathered serpentinite units.
It remains open both along and across strike, showing potential to deliver additional resources.
91.5% average nickel recovery
Initial metallurgical test work was completed by Direct Nickel using a nitric acid leach via the patented DNi Process and returned very encouraging nickel and cobalt recoveries from composite samples.
Averages include 91.5% nickel (saprolite), 88.3% copper (saprolite), 86.4% nickel (lateritic clays) and 82.1% copper (lateritic clays).
DNi Process metallurgical test work on blended laterite and saprolite samples is underway and a scoping study is planned for the second half of 2019.
- Jessica Cummins