BOARD OF DIRECTORS Mr Oscar Aamodt Non-Executive Chairman Ms Sofia Bianchi Non-Executive Director Mr Lindsay Dudfield Non-Executive Director Mr Anthony Ho Non-Executive Director ISSUED CAPITAL SHARES 156,852,955 OPTIONS PROJECTS 3,200,000 (Unlisted) BRYAH BASIN COPPER (80-100%) GASCOYNE GOLD (100%) MURCHISON (80-100%) Drilling delivers further gold at Central Bore High-grade gold intersected in RC drilling program targeting down plunge positions Mineralisation remains open along strike and at depth Systematic exploration continues over expanded Bryah Basin landholding Alchemy Resources Limited (ASX: ALY) is pleased to announce that it has received assay results from the reverse circulation (RC) drilling program completed in April 2012. These holes targeted gold mineralisation at the Central Bore Prospect (Figure 1), located 13 kilometres to the south-east of the Hermes gold deposit and part of Alchemy s Gascoyne Gold Project. The in-fill and step-out RC drilling program consisting of 19 holes for 2,030 metres was designed to test the continuity of mineralisation intersected by initial RC and diamond drilling in 2010 and 2011. The drilling program targeted down plunge positions interpreted following structural studies of drill core that resulted in an improved understanding of controls on mineralisation with the drilling results confirming the orientation and dip of the mineralised structures. Assay results of 1m samples delineate significant intervals of gold mineralisation (applying 0.4 g/t lower cut-off and maximum 2 metres of internal dilution), and include best intersections of: Level 2, 72 Kings Park Road WEST PERTH WA 6005 Phone: +61 8 9481 4400 Facsimile: +61 8 9481 4404 www.alchemyresources.com.au CBRC035 CBRC038 CBRC041 CBRC045 14 metres at 1.94 g/t gold from 44 metres 13 metres at 1.41 g/t gold from 80 metres 3 metres at 10.27 g/t gold from 123 metres 10 metres at 1.09 g/t gold from 100 metres 3 metres at 7.00 g/t gold from 117 metres 9 metres at 4.01 g/t gold from 140 metres The attached Figure 2 shows the location of the drill holes and Table 1 lists all significant intercepts above 0.4 g/t gold. Previous drilling has indicated significant coarse gold and screen fire assays are currently being run on selected high-grade samples.
The drilling confirms and extends previously reported drilling results (see ASX announcements dated 10 December 2010 and 15 July 2011) that included: CBDD002 CBRC004 CBRC005 CBRC011 CBRC018 4 metres at 25.79 g/t gold from 125 metres 1 metre at 12.15 g/t gold from 222 metres 9 metres at 5.86 g/t gold from 35 metres 9 metres at 3.79 g/t gold from 49 metres 20 metres at 1.99 g/t gold from 32 metres 2 metres at 10.64 g/t gold from 80 metres 4 metres at 5.35 g/t gold from 86 metres 8 metres at 2.48 g/t gold from 61 metres 15 metres at 1.90 g/t gold from 96 metres 3 metres at 3.80 g/t gold from 80 metres, and 16 metres at 2.48 g/t gold from 86 metres The gold mineralisation is in high grade (>10g/t) zones within a broad (40-60 metre thick) lower grade gold envelope, associated with a series of northeast-trending veins and structures. The hanging-wall of the mineralisation zone appears to be bounded by the contact between silicified granitic rocks and overlying sedimentary rocks of the Karalundi Formation or Peak Hill Schist. The silicified granitic rocks form a topographic basement or bedrock high at the interpreted contact between a granite pluton and sedimentary rocks. The interpreted silicified zone (up to one kilometre in length) may be the result of significant hydrothermal alteration. Gold mineralisation at Central Bore remains open along strike to the southwest and northeast as well as at depth. There is also potential for additional stacked zones of gold mineralisation as indicated in diamond hole CBDD002 in which additional high-grade mineralisation (1m @ 12.15 g/t gold) was returned from 222 metres down hole. These results are very encouraging and a follow-up drill program is being designed to test the along strike and down-dip extent of the gold mineralisation. Chief Executive Officer Dr Kevin Cassidy said While it is clear from the results that Central Bore was shaping up as a significant gold mineralised system, it remains at the early stages of exploration evaluation. The gold mineralised zone remains open along strike and at depth, and further drilling is required to test the full extent of the gold mineralisation at Central Bore. Aircore drill testing of gold targets to the west of Central Bore in 2011 delineated several areas that required further evaluation. Three RC drill holes at one of these areas about 1 kilometre to the west of Central Bore returned encouraging results (Table 1), including: CBRC054 1 metre at 12.75 g/t gold from 62 metres, and 2 metres at 2.52 g/t gold from 77 metres Alchemy remains focussed on unlocking the copper-gold potential of its expanded Bryah Basin landholding with geological mapping and geochemical sampling continuing on the recently acquired tenements, and with ground geophysical surveys planned to commence next month. In combination, the results from these surveys will be used to define additional targets for drill testing in the second half of 2012. ` ENDS
Please direct enquiries to: Mr Oscar Aamodt (Chairman) Dr Kevin Cassidy (Chief Executive Officer) Telephone: +61 8 9481 4400 ABOUT ALCHEMY RESOURCES Alchemy is actively exploring three key areas; the Bryah Basin Copper Project, the Gascoyne Gold Project, and the Murchison Project. The Bryah Basin Copper Project contains more than 45 kilometres of strike extent of the Narracoota Volcanic Sequence, host to Sandfire s DeGrussa copper deposit. Alchemy is undertaking systematic evaluation of its Bryah Basin landholding, which is highly prospective for the discovery of VMS-style copper deposits. The Gascoyne Gold Project includes the Hermes and Wilgeena gold deposits and the Central Bore gold prospect. Hermes has an Indicated Resource of 2.79Mt @ 2.19g/t gold (equivalent to 196,650 ounces of gold) and Wilgeena, located 15 kilometres south of Hermes, hosts an Indicated Resource of 659,480t @ 2.34g/t (equivalent to 49,500 ounces of gold). The Murchison Project consists of more than 700 square kilometres of tenements located in the vicinity of several large (>1Moz) gold deposits. The project is being explored for gold and base metals. Competent Persons 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 a full-time 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 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. 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.
Figure 1. Central Bore gold prospect, Gascoyne Gold project.
Figure 2. Gascoyne Gold Project, Central Bore prospect results from recent RC drilling in April 2012 as well as results from previous drilling.
Table 1: Central Bore gold prospect Significant intervals from RC Drilling, >0.40g/t gold Prospect Hole ID MGA MGA Hole From To Interval Gold Comment East (m) North (m) Depth (m) (m) (m) (m) (g/t) Central Bore CBRC034 702237 7160355 78 31 36 5 1.56 51 56 5 1.94 CBRC035 702269 7160347 110 4 5 1 0.73 10 11 1 0.67 37 38 1 0.42 44 58 14 1.94 65 75 10 0.70 80 93 13 1.41 CBRC036 702274 7160319 121* 76 77 1 5.69 81 83 2 0.87 86 87 1 0.83 97 98 1 0.86 106 111 5 1.32 CBRC037 702318 7160301 156 18 19 1 0.44 67 70 3 0.63 86 87 1 0.45 107 113 6 0.81 118 119 1 0.64 122 126 4 3.05 142 144 2 0.56 147 148 1 3.36 154 156 EOH 2 2.10 ended in mineralisation CBRC038 705826 7160879 139* 116 117 1 1.55 123 126 3 10.27 incl 2m @ 15.2 g/t (123m) 129 135 6 0.74 138 139 EOH 1 0.63 ended in mineralisation CBRC039 702326 7160293 126 5 12 7 0.58 16 18 2 0.51 39 46 7 1.78 63 67 4 0.73 84 85 1 6.71 88 92 4 1.21 CBRC040 702287 7160392 132 35 39 4 1.97 52 53 1 1.01 69 83 14 0.92 88 89 1 0.67 93 96 3 0.65 100 108 8 0.83 111 112 1 0.54 115 118 3 0.91 123 124 1 0.52 129 130 1 0.53 CBRC041 702309 7160367 154 76 77 1 3.98 81 82 1 0.74 91 97 6 0.83 100 110 10 1.09 117 120 3 7.00 incl 1m @ 20.3 g/t (119m) 123 124 1 0.55 130 134 4 1.40 140 141 1 0.52
Prospect Hole ID MGA MGA Hole From To Interval Gold Comment East (m) North (m) Depth (m) (m) (m) (m) (g/t) Central Bore CBRC042 702356 7160320 180 87 89 2 0.58 cont. 98 99 1 0.42 115 116 1 2.38 120 121 1 2.12 127 128 1 0.53 141 149 8 0.65 157 158 1 1.30 171 172 1 0.52 CBRC043 702354 7160379 138 41 42 1 6.62 50 51 1 0.53 55 56 1 7.01 73 84 11 1.16 87 89 2 0.47 92 99 7 0.37 114 115 1 0.73 CBRC044 702338 7160389 108* 54 55 1 0.46 98 102 4 2.56 105 108 EOH 3 1.09 ended in mineralisation CBRC045 702406 7160333 180 91 92 1 2.06 116 121 5 1.05 127 131 4 0.40 136 137 1 0.77 140 149 9 4.01 164 165 1 0.61 169 170 1 0.52 CBRC046 702333 7160420 108 8 9 1 0.42 38 43 5 0.81 CBRC047 702083 7160384 40 NSR CBRC048 702094 7160367 60 32 35 3 6.61 incl 1m @ 13.1 g/t (32m) CBRC049 702051 7160358 40 21 25 4 1.14 CBRC050 702060 7160340 60 NSR CBRC051 702019 7160336 40 21 22 1 0.51 CBRC052 702039 7160316 60 30 31 1 0.46 50 53 3 0.31 Central Bore CBRC053 701148 7159953 80 NSR West CBRC054 701151 7159847 80 62 63 1 12.75 77 79 2 2.52 CBRC055 701153 7159752 80 NSR * Drill hole abandoned prior to target depth Calculation of Assay Results: Quoted drill intersections are based on a lower cut-off of 0.40g/t gold with a maximum of 2 metres of internal dilution (i.e., samples with less than 0.40g/t gold). Assay results were obtained from geochemical analysis of 1 metre split samples. Sampling was undertaken following logging of geological boundaries within the drill hole. All samples were analysed at ALS Global Laboratories in Perth. Samples are prepared using single stage pulverization of the entire sample. Gold assays are obtained using 30g fire assay technique and atomic absorption spectrometry analysis finish. Full analytical quality assurance - quality control is achieved using a suite of certified standards, laboratory standards, field duplicates, laboratory duplicates, repeats, blanks and grind size analysis. The location of drill holes is determined using a handheld GPS achieving less than 10m accuracy and using the MGA datum (Zone 50). All drill holes were drilled at -60 degrees to 320 degrees MGA azimuth, except for CBRC034 that was drilled vertically, and drill holes CBRC053-055 that were drilled at -60 degrees to 0 degrees MGA azimuth.