Up and coming Alchemy Resources Limited has struck lithium, and its share price has been soaring in response.
Soil sampling and rock chipping at the company’s Karonie Gold Project have discovered a new "coherent lithium and pathfinder anomalous corridor".
The ASX gold miner’s reached a new 52 week high of 3.2 cents, but still ended the day up 42% at 2.7c cents a share.
A new lithium asset has been identified east of Kalgoorlie, and Alchemy are benefiting greatly from the discovery. Alchemy Resources’ Pecan, Mesquite, Hickory, and Cherry prospects have been found to house soil anomalies consistent with possible hard rock lithium mineralisation.
The prospects cover an area 7km long and 1km wide. They sit along Global Lithium Resources Ltd and Breaker Resources NL Manna Lithium Deposit‘s strike. ALY found additional lithium targets for the Karonie regional areas through a desktop study. The study generated 15 initial targets.
Site visits to the targets will be conducted to ground-truth the target areas. Additionally, Alchemy Resources is planning a large-scale soil sampling campaign at the project. The company also has a contact zone for a regional granite strike, most of which hasn’t been tested for battery minerals.
It also has stakes in other gold, copper-nickel, and base metals projects around Australia.