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ALCHEMY RESOURCES LIMITED AGM Information 2013

Nov 25, 2013

64369_rns_2013-11-25_b1490d67-2787-4ce5-b23f-9fbc07b89a3a.pdf

AGM Information

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Copper & gold in
the heart of the rich
Bryah Basin, WA
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AGM Presentation 26 November 2013

Disclaimer

This presentation has been prepared by Alchemy Resources Limited ( Alchemy or the Company ). This document contains background information about Alchemy current at the date of this presentation. The presentation is in summary form and does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this presentation.

This presentation is for information purposes only. Neither this presentation nor the information in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdictions. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such a jurisdiction.

This presentation does not constitute investment advice and has been prepared without taking into account the recipient’s investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.

To the fullest extent permitted by law, Alchemy and its officers, employees, agents and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted.

This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of Alchemy. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward looking statements. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under any applicable law and the ASX Listing Rules, Alchemy does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation of any changes in events, conditions or circumstances on which any such forward looking statement is based.

Competent Person’s Statement

The information in this report that relates to Exploration Results is based on information compiled by Dr Kevin Cassidy, who is a Fellow of the Australian Institute of Geoscientists, and is an employee of Alchemy Resources Limited. Dr Cassidy 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’. Dr Cassidy consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Mineral Resources at the Hermes Gold Deposit and Wilgeena Gold Deposit is based on information compiled by Mr Simon Coxhell of CoxsRocks Pty Ltd, who is a Member of the Australian Institute of Geoscientists and a Member of the Australasian Institute of Mining and Metallurgy and is a consultant to Alchemy Resources Limited. Mr Coxhell has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity that 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 Coxhell consents to the inclusion in this report of the matters based on his information in the form and context in which it appears .

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ABN 17 124 444 122

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Focussed strategy towards unlocking gold and copper potential across uniquely positioned Bryah Basin Project

First-pass drilling extends Sandfires’ North Robinson Range multi-element anomaly over 15km into Magnus VMS target zone

Multiple geophysical and geochemical copper-gold targets remain untested along +45km long VMS prospective corridor

High-grade gold returned from ‘gold-only’ prospects – Seaborg and Central Bore Indicated Resource of 300,000oz gold at an average grade of 2.0g/t – Hermes & Wilgeena – close to existing processing plants

Multiple ‘gold-only’ targets identified across project through advances in understanding of key controls on mineralisation

Potential for growth through discovery of additional high-grade gold across highly prospective region

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Listed on ASX in November 2007 Code: ALY
Shares on issue 156.85m
Options – unlisted 0.975m
Market Capitalisation (undiluted) $7.0m
Cash (30 September 2013) $1.1m
Top 3 Shareholders BlueCrest Capital
26.92m (17.2%)
Jindalee Resources
17.47m (11.1%)
Grandor (Mark Scott)
7.39m (4.7%)
Directors Oscar Aamodt
(Non-executive Chairman, Independent)
Sofia Bianchi
(Non-executive)
Lindsay Dudfield
(Non-executive)
Anthony Ho
(Non-executive, Independent)
Management Kevin Cassidy
(Chief Executive Officer)
Bernard Crawford
(CFO/Company Secretary)

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Primary focus is advancing the Bryah Basin Project

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Alchemy’s growth strategy is to:

Create value through focused, systematic exploration for highgrade, high-value copper & gold Grow mineral resources through targeted drilling at new (Seaborg) and existing (Hermes, Wilgeena, Central Bore) areas Continue to expand Company’s position through strategic acquisition of additional projects

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Bryah Basin Project – copper-gold and ‘gold-only’ potential Unique, dominant landholding position of 630km[2] in exciting province Region hosts major coppergold ( DeGrussa ) and gold mines ( Plutonic, Peak Hill & Fortnum ) Historically under-explored province – discovery of DeGrussa in 2009 Native Title extinguished over >95% of area

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SEABORG Gold Prospect

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Newly discovered prospect at Seaborg with high-grade gold potential High quality exploration portfolio with excellent resource growth potential Currently 300,000oz gold at Hermes and Wilgeena deposits – open at depth/strike Goal of increasing resources while continually evaluating commercialisation opportunities

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Recent high-grade gold hits

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51m @ 3.71 g/t gold from surface incl. 5m @ 6.03 g/t (from 1m) and 14m @ 6.59 g/t (from 23m) 23m @ 3.16 g/t gold from 16m Drilling ended in mineralisation Potential high-grade shoot in mineralised zone

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Follow-up RC/diamond drilling planned

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Seaborg one of many ‘gold-only’ targets

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Targeted extensional drilling in 2013 returned further high-grade intercepts Recent high-grade intercepts 4m @ 25.79 g/t gold from 125m 14m @ 3.26 g/t gold from 44m Continuity of mineralisation confirmed Remains open along strike and at depth Potential for additional stacked zones

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Acquired from Troy Resources in 2008 with 131,000oz gold Indicated resource 230% increase in resources Indicated resources now total 300,000oz at Hermes and Wilgeena Enhanced value of project Improved geological understanding and confidence in grade continuity Potential for growth* through depth and strike extent of existing resources

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  • Hermes – Indicated Resources of 3.34Mt @ 1.98 g/t gold (212,687 oz gold) Wilgeena – Indicated Resources of 1.36Mt @ 1.99 g/t gold (87,373 oz gold) (see ASX announcement dated 22 October 2012)

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Metallurgical test-work on oxide core material indicates amenable to treatment in conventional crush, grind and CIL plant

Good recoveries across all size fractions

High proportion of gold contained in coarse fraction

Large percentage (40-60%) of free gold recoverable by gravity concentration Within trucking distance of processing plants

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over Limited modern exploration past 15 years Regional interpretation has advanced geological & structural understanding

Numerous untested gold targets – historic drill intercepts, surface anomalies & structural positions

Targeted exploration underway surface geochemistry & ground geophysics

Auger geochemical drilling &follow-up AC/RC drill testing commence in early 2014

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Bryah Basin Project - Copper

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(Cu)
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Sandfires’ DeGrussa is likely structurally overprinted VMS deposit

VMS deposits typically occur in clusters in favourable stratigraphy

Alchemy controls ~45km of strike extent of prospective sequence

Prospective stratigraphy mostly soil covered, under-explored for copper – limited drilling

Excellent geological & geochemical knowledge of prospective sequence Systematic approach to exploration to delineate robust drill targets

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Numerous copper – gold targets identified from geophysics & geochemistry

Multiple laterally-extensive prospective VMS-related horizons across project Surface, shallow and historic drilling returns multi-element anomalism

Characteristic multi-element fingerprint (Cu-Au-Ag-Zn-Bi-Pb-Mo-Se-Te-W) associated with horizons

Metal association similar to DeGrussa and Horseshoe Lights and consistent with VMS mineralising systems

Identification of syn-depositional faults

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Broad-spaced, shallow drilling extends Sandfires’ North Robinson Range multi-element anomaly over 15km into Magnus VMS target zone Additional strike-extensive geochemical anomalies identified within prospective Narracoota Multiple stratiform horizons consistent with episodic VMS-style base metal mineralising events Analogous positions to DeGrussa and Horseshoe Lights

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Multiple broad, linear zones with strong secondary copper, gold and pathfinder anomalism – Neptune, Churchill, Fiddler

Anomalous stratiform horizons – analogous positions to DeGrussa and Horseshoe Lights Innovative technology to assist vectoring towards VMS prospective horizons and identification of primary sulphide targets

Magnus, Neptune & Fiddler – in-fill shallow drilling & ground geophysics along horizons to delineate areas for deeper drill testing

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Multiple bedrock conductors delineated from VTEM and ground moving-loop/fixed-loop EM Eight distinct conductors , including MT-36 and two conductors at Neptune, remain untested

On-going interpretation and additional field verification studies are being undertaken to rank these targets prior to further exploration and drill testing

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December 2013 Q

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  • Low-cost surface geochemistry & ground geophysics across

  • ‘gold-only’ targets – underway

  • Planning of targeted drilling at Seaborg - underway

  • Interpretation of shallow drilling results and planning drill

  • testing of ‘gold-only’ and copper-gold targets - continuing

First half 2014 Y

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  • Cost effective auger geochemical drilling of ‘gold-only’ targets

  • Targeted drill testing of historic ‘gold-only’ intercepts

  • In-fill shallow drilling & ground geophysics of strike-extensive horizons at Magnus copper-gold target

  • Follow up new gold and copper discoveries

A rich prize awaits…..

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