Alliance Resources Ltd (Alliance) is pleased to provide an update on the Company's recent and planned exploration activities at the Wilcherry Project, located in the southern Gawler Craton in South Australia.
During the first half of 2021 Alliance's exploration activities at the Wilcherry Project have been reduced in part due to COVID-19 travel restrictions and the Company focus on the feasibility studies to develop the Weednanna Au-Fe Deposit.
The Weednanna Deposit is the most advanced prospect in the Wilcherry Project area and contains 1.106 Mt grading 4.3 g/t Au for 152,000 oz gold (classified as 85% Measured & Indicated and 15% Inferred) and 1.15 Mt grading 59.4% Fe (classified as 65% Measured & Indicated and 35% Inferred). Refer to Alliance ASX announcements dated 9 November and 19 November 2020 for details concerning the Gold Mineral Resource and the Iron Mineral Resource respectively.
Alliance is not aware of any new information or data that materially affects the information included in the above-mentioned announcements
All material assumptions and technical parameters underpinning the above-mentioned Mineral Resource estimates continue to apply and have not materially changed The Wilcherry Project covers a 1,484 square kilometre area of Archaean and Paleoproterozoic rocks that are prospective for a variety of mineralisation styles including skarn associated Fe-Au, carbonate replacement Pb-Zn, and epithermal Ag. Since acquiring the project in late 2016 the bulk of Alliance's exploration activities have focussed on the discovery and definition of gold resources at the Weednanna Deposit. During 2021, Alliance's exploration team has been reviewing the regional gold exploration potential of the Wilcherry Project area and developing an exploration strategy to identify and advance priority targets in a cost-efficient and effective manner to produce a quality portfolio of gold exploration prospects with the highest potential to deliver new resources to build on the Weednanna project resource.
This work has included refining the Weednanna mineral model, capturing historic regional drilling data, validating regional databases, re-logging historic drill holes, and assessment of regional geophysical, surface geochemical and drilling datasets. Work programs completed in support of these activities include analysis of historic iron and base metal drill sample pulps from the Ultima Dam area for gold and continued collaborative research with the CSIRO on the Weednanna Deposit.
Future work programs designed to support these activities include induced polarisation (IP) surveys at the Weednanna North and Mawson prospects, continued RC drill definition of the Weednanna Deposit, and drilling of a deep diamond hole to test the underlying architecture of this deposit. This work is discussed in the following sections.
Gold Analysis of Historic Ultima Dam Drill Samples
The Ultima Dam area is located 3 kilometres to the north of Weednanna and consists of the Ultima Dam, Ultima Dam East, Ultima Dam West, and Ultima Dam South prospects. The area has similar host rocks to Weednanna and was most recently assessed for its' iron potential by Ironclad Mining between 2007 and 2012. 186 RAB holes, 18 aircore holes, 271 RC holes, and 20 diamond holes, totalling 35,087 metres, have been drilled in the area with the majority of holes not analysed for gold. To assess the gold exploration potential of the area, Alliance re-analysed 7,955 historic drilling sample pulps for gold using the fire assay technique.
In total, 79.2% of all drill samples collected from the Ultima Dam area have now been analysed for gold and 370 of the 495 holes drilled in the Ultima Dam area have had some samples analysed for gold. Of these drill holes, 87 holes (24%) have returned an anomalous gold result (> 0.1 g/t Au), 30 holes (8%) have returned > 1.0 g-m Au (0.1 g/t Au lower cut), and 7 holes (2%) have returned > 1.0 g/t Au (peak result: 4.93 g/t Au). Exploration drilling in the Ultima Dam area has identified areas of broad low-level gold anomalism in the regolith and fresh rock associated with magnetite skarn alteration in the calc-silicate host rocks. This style of mineralisation is similar to Weednanna. The Ultima Dam area is composed of broad zones of structurally complex calc-silicate lithologies with associated magnetic and gravity highs indicating magnetite skarn and possibly garnet skarn. These lithologies are bounded by granite, gneiss, schist and quartzite. Exploration at Weednanna has shown that gold mineralisation is depleted within the saprolite and that lowlevel gold anomalism can be used as a vector towards high-grade primary gold shoots.
Also, high-grade gold mineralisation is lithologically and structurally controlled and occurs as discrete shoots which require close spaced drilling to discover and define. Lithological controls on gold distribution include favourable iron-rich host rocks and rheology contrasts, whereas structural controls include dilatational positions associated with the calc-silicate / granite hangingwall and footwall contacts and cross-cutting structures. Most of the historic drilling in the Ultima Dam area did not target gold mineralisation and was not designed to test structural targets. While the gold analysis of the historic drill pulps has not presented any immediate high-grade gold targets for definition with further drilling, the broad distribution of gold anomalism and favourable host rocks located within a structurally complex area confirm the potential for Weednanna-style gold deposits. Further exploration for gold in the Ultima Dam area will be planned during 2022 as Alliance expands its' exploration programs beyond the immediate Weednanna Deposit area.
Weednanna Research Project
Alliance has entered into two research agreements with the CSIRO. The first phase of research commenced in late 2020 and is a collaboration between Alliance, the CSIRO, and Australian university researchers to investigate the timing of igneous activity adjacent to the Weednanna Deposit, the deposit-scale mineralogy and how it can be combined with automated logging techniques using multi-element geochemical data from RC drill chips to develop exploration vectors towards gold mineralisation. This phase of research is partially funded by a $50,000 grant from the Federal Government Aus-Industry Innovation Connections program.
The second phase of research will use diamond core from the holes currently being drilled at Weednanna to apply novel multi-scale analytical techniques developed by the CSIRO to study the chemistry, structures and mineralogy associated with the gold leading to a new genetic deposit model. This phase of research is partially funded by the South Australian Government ADI grant. Microscale chemical imaging using the Maia Mapper micro-X-ray fluorescence imaging instrument will highlight the gold deportment in diamond core and how it relates to different host rocks, hydrothermal and/or supergene alteration minerals. These element maps will also highlight minerals that can be dated to place the gold mineralisation within the complex geological history of the southern Gawler Craton. By understanding the controls on gold deposition at Weednanna, and their chemical and mineralogical signatures, CSIRO will provide a framework to predict the key aspects of similar gold mineral systems in the Gawler Craton enabling targeted exploration.
Weednanna RC Drilling
A 7,000 metre RC drilling program is scheduled to commence at the Weednanna Deposit in October, following completion of the diamond drilling program. This drilling program will be completed in the northern area of the deposit and is designed to define the boundaries of Shoot 7 and 8, upgrade Shoot 3 from the Inferred to Indicated resource category, and test for new shoots in between Shoots 7 and 8 and Shoot 3.
Weednanna North and Mawson Induced Polarisation Surveys
The Weednanna North and Mawson prospects are located along strike to the northwest of the Weednanna Deposit and cover over 5 kilometres ofstrike length of calc-silicate and magnetite skarn stratigraphy, which is the favorable host for gold mineralisation at Weednanna. Historic drilling at Weednanna North focused on defining iron resources, whereas limited drilling at Mawson tested for skarn-associated gold and IOCG models. This drilling has intersected widespread gold anomalism that support the potential for economic concentrations of gold, similar to Weednanna.
In 2018 Alliance completed an Induced Polarisation (IP) survey at Weednanna that effectively identified chargeable anomalies associated with gold mineralisation at the deposit (refer to Alliance ASX Announcement dated 7 March 2019). A 35 line-kilometre IP survey will be completed at the Weednanna and Mawson prospects when a geophysical crew becomes available in the next few month (subject to COVID-19 interstate travel restrictions).
The survey will be completed using 200 metre spaced lines and infilled as necessary to define chargeable anomalies for drill testing in 2022.
About Alliance
Alliance Resources Ltd is an Australian gold and base metals exploration company with 100% owned projects in South Australia and Western Australia. The Company's flagship project is the Wilcherry Project, located within the southern part of the Gawler Craton, approximately 45 km north of the township of Kimba, South Australia. The Mineral Resource estimate for the Weednanna Gold Deposit, part of the Wilcherry Project, is 1.106 Mt grading 4.3 g/t gold for 152,000 oz gold (classified 85% Measured & Indicated and 15% Inferred). Refer to ASX announcement dated 9 November 2020 for details concerning the Mineral Resource and the Competent Persons consent. The maiden iron resource for the Weednanna project was announced on 19 November 2020 and totals 1.15 Mt grading 59.4% Fe (classified as 65% Measured & Indicated and 35% Inferred). Refer to ASX announcement dated 19 November 2020 for details concerning the Mineral Resource and the Competent Persons consent. There is potential to increase the size of these Mineral Resources with further drilling.
Alliance is not aware of any new information or data that materially affects the information included in the above-mentioned announcements. All material assumptions and technical parameters underpinning the above-mentioned Mineral Resource estimates continue to apply and have not materially changed. An independent scoping study reported a positive outcome and supports a new, 250,000 tpa gold processing plant at Weednanna. Total indicative capital cost is approximately $44 million. Refer to ASX announcement dated 18 April 2019 for details concerning the scoping study including the above-mentioned financial information. All material assumptions underpinning the above-mentioned financial information continue to apply and have not materially changed.
Contact:
Tel: +61 3 9697 9090
Fax: +61 3 9697 9091
Email: info@allianceresources.com.au
ALLIANCE RESOURCES 
