Alloy Resources (ASX:AYR) has announced interesting drill intercepts from its Dusk til Dawn gold prospect in Western Australia. The company decided to drill approximately 80 meters south of the discovery hole, and this seems to have been a wise decision as Alloy intersected 32 meters at 1.94g/t gold from a depth of 144 meters, including a high-grade zone of 12 meters at 3.56g/t.
The company has completed a 15-hole drill program, and is in the position to issue an updated resource estimate which will very likely considerably increase the current resource base of 99,000 ounces of gold at an average grade of 2.91g/t. After completing a resource estimate on the Warmblood prospect, the company will immediately proceed to study the economics of a production scenario whereby a third party would process the ore.
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Disclosure: The author holds no position in Alloy Resources. Please see our disclaimer for current positions.
