• Increase font size
  • Default font size
  • Decrease font size

May 2016 - Alloy Resources Ltd

Alloy Resources Limited (AYR) – Participating in the Horse Well JV with Doray with a Target Resource of >1moz & 100kozpa Production

  • Alloy Resource's main project is the Horse Well JV with Doray (DRM.ax) in which DRM has so far farmed in for 60% (AYR:40%), in the northern goldfields of WA ~50km due north of NST's Jundee gold mine. Horse Well lies on the northern (Millrose) limb of the Yandal greenstone belt that divides around a granite, with Jundee on the southern limb.
  • The Horse Well Project area was discovered by Orpheus in 1992 and JV'd with Eagle Mining in 1993, passing through various takeovers until Alloy acquired it in April 2006. Horse Well can be divided into the northern "Dawn" prospects (DD or Dusk ['til Dawn], COD or Crack [o' Dawn], & Django), and the southern "Horse" prospects of Palomino, etc.
  • Doray rank the Horse Well JV as "Mid-term production growth" (after Andy Well, and Deflector), and include a 3d interactive model of the DD prospect on their website. Doray have stated that they have the opportunity to increase to an 80% holding by spending $2m over the next 12 months. However, AYR retain their 40% holding in the JV if they pay their 40% of the $2m, and consequently raised ~$1.3m (120m shares @ 1.1c) in April 2016.
  • Having delineated the DD prospect to some degree, the JV, led by Doray has been focusing in the NE on their Django discovery (on the eastern side of the granite from DD), and SW on the Warmblood South extension of Warmblood (which was discovered in 2011/2012 by AYR, SW of Filly South in the original Horse prospects).
  • In their MQ 2016 results presentation on 29 April 2016, Doray stated that Horse Well was their regional exploration favourite and potentially capable of becoming Doray's third mine, possibly being in production in 3 to 4 years' time as a stand-alone plant fed by a number of ore sources. Doray were attracted to Horse Well due to its inclusion in a greenstone belt that has mines such as Bronzewing, Mt McClure and Jundee; and exploration at Horse Well has continued to be encouraging.
  • The other original "Horse" prospects such as Palomino, Bronco and Filly are undergoing re-evaluation and review by the Joint Venture. Especially given their encouraging high grades (such as 24m @ 5.2g/t, 12m @ 7.6g/t, 4m @ 15.9g/t & 10m @ 24.3g/t) and the possibility that Eagle Mining intended Horse Well to be their next mine after Nimary.
  • Written by: Keith Goode
  • Thursday, 28 July 2016