Alchemy Resources (ASX:ALY) has secured 100% ownership of the Bryah Project by acquiring the remaining 50% interest in the iron ore rights from Carey Mining. The agreement involves a $75,000 cash payment and a gradational royalty on iron ore sales, dependent on the iron ore price. The royalty ranges from $0.80/t to $1.22/t based on price thresholds of US$100/t and US$125/t, respectively.
The Bryah Project, spanning 527km2, is strategically located near Sandfire Resources’ DeGrussa and Monty deposits. Alchemy’s CEO, James Wilson, highlighted the project’s potential, citing high-grade iron ore rock-chip samples with assays above 65% iron, indicative of direct shipping ore (DSO) potential at the Valley Bore prospect. Reconnaissance mapping and sampling have identified hematite and goethite-rich units of banded iron formation, with historical data showing grades up to 61.91% iron. Sampling at the Old Highway target has also revealed high-grade iron ore enrichment up to 64.09%.
Wilson emphasized the project’s strategic location, situated 12km from the Great Northern Highway and surrounded by major industry players. The company has completed necessary heritage surveys and has approved programs of work to facilitate a maiden drill program. Additionally, the Hermes deposit within the project retains a 1% net smelter royalty on gold production exceeding 70,000 ounces, with current production at 50,800 ounces.
Alchemy Resources, an Australian explorer, focuses on developing gold, base metal, and nickel-cobalt projects in New South Wales and Western Australia. This acquisition strengthens their position in the iron ore sector and allows for accelerated exploration and development at the Bryah Project.
