Major New Copper Targets Transform Alchemy Resources Yellow Mountain Project

Alchemy Resources Identifies Major New Copper Targets at Yellow Mountain Project

Alchemy Resources Limited (ASX: ALY) has announced breakthrough results from its recently completed Induced Polarisation (IP) geophysical survey at the Yellow Mountain Copper Project in New South Wales. The company has identified two significant new drill targets that could substantially expand the project's mineralised footprint. Moreover, these major new copper targets at Alchemy Resources Ltd represent a pivotal development in the company's exploration strategy.

The survey has revealed strong IP anomalies up to 35mV/V, with inversion modelling confirming robust drill targets positioned immediately along strike. Furthermore, these targets are adjacent to existing drilling areas where the company previously intersected exceptional results including 113m at 1.17% CuEq and 31m at 1.54% CuEq.

Strategic Breakthrough: Geophysics Validates Exploration Model

The IP survey results represent a pivotal moment for Alchemy's Yellow Mountain project, demonstrating that geophysical signatures closely mirror areas of known copper mineralisation. This correlation provides the company with a powerful targeting tool to systematically explore what appears to be a much larger mineralised system than previously understood.

Additionally, the identification of these major new copper targets at Alchemy Resources Ltd represents a significant step forward in the project's exploration strategy. The survey has validated the company's geological understanding whilst simultaneously opening new exploration opportunities.

Key Survey Outcomes:

• Target 1 (T1): Located 400m along strike from known mineralisation, spanning approximately 250m in strike length

• Target 2 (T2): Comprises a ~750m long >30mV/V IP anomaly interpreted as continuation of the synclinal structure

• Both targets show no historical drilling, representing completely untested exploration opportunities

• Geophysical response strongly correlates with areas of proven copper mineralisation

CEO James Wilson commented: "The results from our recently completed IP survey are highly encouraging and further reinforce our geological understanding of the Yellow Mountain copper system. The geophysical response closely mirrors the signature observed over areas where we have already intersected strong copper mineralisation… This gives us a much stronger framework for targeting follow-up drilling and prioritising the most prospective zones within what we continue to see as a large, coherent copper system."

Understanding Induced Polarisation Surveys: A Critical Exploration Tool

What is Induced Polarisation (IP)?

Induced Polarisation is a geophysical technique that measures the electrical properties of subsurface rocks and minerals. When an electrical current is applied to the ground and then switched off, certain minerals retain a "charge" for a brief period. In particular, sulphides associated with copper mineralisation create a measurable IP response.

Why This Matters for Investors

IP surveys are particularly effective at detecting sulphide mineralisation, which is directly associated with copper deposits. The chargeability measurements up to 35mV/V at Yellow Mountain are considered highly anomalous. These readings indicate the presence of significant sulphide concentrations that could host copper mineralisation.

Industry Context:

Technical Survey Specifications

The IP survey utilised bipole-dipole array configuration with 100m receiver dipole lengths and minimum 500m transmitter bipole lengths. The survey covered 15km of total line kilometres across six lines with 200m separation. Importantly, lines were oriented east-west to maximise coverage across known structural trends.

Proven Track Record Supports New Target Potential

The company's confidence in these new targets stems from the strong correlation between IP responses and recent drilling success. The proven mineralised zones returned exceptional intercepts that validate the exploration model. Consequently, this success supports confidence in the newly identified major new copper targets at Alchemy Resources Ltd.

These results confirm a large and continuous mineralised system that remains open along strike and at depth. Critically, the geophysical response over these intercepts closely matches the signature of the newly identified targets. This correlation suggests similar mineralisation potential in the untested areas.

Project Location and Geological Setting

Yellow Mountain is strategically located 200km southeast of Cobar in New South Wales, positioned within the mineral-rich Lachlan Fold Belt. The project benefits from established mining infrastructure in the broader Cobar region. Furthermore, it has historic production records dating to the mid-1800s and a proven geological setting within rock sequences known to host significant copper deposits.

What Makes the Geological Framework Special?

Mineralisation at Yellow Mountain occurs within a structurally controlled system hosted in brittle volcanic rocks. This setting differs from traditional massive sulphide-style deposits and opens new exploration opportunities. The polymetallic system contains copper, gold, silver, lead, and zinc within a volcanic rock sequence.

The system is bounded by granite in the lower levels and volcanic rock in the upper levels. The structural control of mineralisation provides a framework for systematic exploration, with the newly identified targets following similar geological patterns to the proven mineralised zones.

Target Characterisation and Drill Planning

Target 1 (T1) Analysis

Target 1 represents a compelling drill opportunity located 400m along strike from known mineralisation. The target spans approximately 250m in strike length with chargeability responses exceeding 30mV/V. Importantly, this area shows minimal soil geochemical response, interpreted to reflect transported surface cover masking underlying mineralisation.

Historical drilling in the vicinity has intersected trace base metal sulphides. This provides geological context that supports the geophysical interpretation.

Target 2 (T2) Assessment

Target 2 comprises the most extensive geophysical anomaly identified, spanning ~750m in length with chargeability values exceeding 30mV/V. The target is interpreted as representing the continuation of the structural system on the eastern limb of the regional fold structure.

Similar to Target 1, nearby drilling has intersected pyrite and trace base metal sulphides. This indicates an active mineralising system that supports the geophysical targeting approach.

Investment Thesis: Scale Potential Significantly Enhanced

The IP survey results fundamentally enhance Yellow Mountain's investment proposition. These findings validate the pursuit of major new copper targets at Alchemy Resources Ltd by demonstrating several key factors.

1. Systematic Exploration Approach

The strong correlation between geophysics and known mineralisation provides a proven targeting methodology. This approach significantly reduces exploration risk whilst increasing success probability. Furthermore, this systematic approach enables efficient capital deployment across priority targets.

2. Scale Expansion Opportunity

The newly identified targets suggest a mineralised footprint potentially 3-4 times larger than currently defined. Target 2 alone spans 750m of strike length, indicating substantial scale potential for resource expansion.

3. Immediate Value Catalysts

With heritage surveys planned for February 2026 and drill-ready targets defined, investors have clear near-term milestones to monitor progress. The systematic approach to target prioritisation ensures efficient progression through the exploration pipeline.

4. Proven System Validation

Recent drilling success (113m @ 1.17% CuEq) combined with supporting geophysics creates a compelling evidence base for continued exploration investment. The correlation between geophysical response and mineralisation provides confidence in target selection.

Immediate Next Steps and Timeline

Alchemy is advancing rapidly to capitalise on these new target opportunities with a structured exploration timeline. The company has outlined clear milestones for advancing exploration activities.

February 2026:

• Heritage surveys to commence across priority target areas

• Completion of detailed drill planning and permitting processes

• Finalisation of contractor arrangements for upcoming drill programme

Q2 2026 (Expected):

• Drill testing of highest priority IP targets commences

• Initial results expected from Target 1 and Target 2 testing

• Assessment of resource expansion potential based on drilling outcomes

Ongoing Development:

• Continued geochemical analysis to refine metal distribution mapping

• Structural interpretation updates incorporating new geophysical data

• Integration of drilling results with geological and geophysical models

How Does Copper Market Context Affect Timing?

The identification of these major new copper targets at Alchemy Resources Ltd occurs against a backdrop of strengthening copper market fundamentals. Global copper demand continues to be supported by renewable energy infrastructure development. Additionally, electric vehicle adoption and traditional industrial applications provide ongoing demand support.

The strategic location of Yellow Mountain within 200km of Cobar positions the project to benefit from established mining infrastructure. This proximity to existing operations provides potential advantages for future development scenarios.

Technical Risk Mitigation

The systematic geophysical approach employed at Yellow Mountain provides several risk mitigation advantages for exploration activities. The company has implemented multiple strategies to reduce exploration risk.

Proven Methodology

The strong correlation between IP anomalies and known mineralisation demonstrates the effectiveness of the geophysical technique for this specific geological setting. This correlation reduces target selection risk and improves drilling success probability.

Multiple Target Strategy

The identification of two distinct target areas provides multiple opportunities for discovery success. This approach reduces dependence on any single exploration outcome. Furthermore, this strategy spreads exploration risk across multiple high-priority targets.

Geological Understanding

The structural control of mineralisation provides a framework for systematic exploration beyond the current targets. Understanding the geological controls enables predictive targeting and efficient resource allocation.

Why Investors Should Monitor Alchemy Resources

Alchemy Resources has positioned itself as a systematic explorer with a disciplined approach to target generation and testing. The Yellow Mountain project exemplifies this methodology through the integration of geochemistry, geology, and geophysics. This approach maximises discovery potential whilst minimising capital deployment risk.

Corporate Strengths:

1. Technical Excellence: The integration of multiple exploration techniques demonstrates sophisticated capabilities that optimise discovery potential. This approach manages exploration expenditure efficiently.

2. Strategic Asset Portfolio: Beyond Yellow Mountain, Alchemy maintains interests across multiple projects including 80% interest in Lachlan/Cobar Basin properties. The company also has established positions in the Eastern Goldfields region of Western Australia.

3. Proven Management Track Record: Led by CEO James Wilson (Member of Australian Institute of Geoscientists), the company combines technical expertise with capital markets experience. This combination enables the systematic advancement of exploration projects.

4. Clear Value Creation Path: With multiple drill-ready targets now defined and immediate catalysts approaching, Yellow Mountain offers investors exposure to potential resource expansion. The project provides discovery upside in a proven geological setting.

"Alchemy Resources has transformed Yellow Mountain from a single-target exploration play into a systematic campaign targeting a large, coherent copper system. With proven mineralisation intersected and multiple high-priority targets now defined through robust geophysical work, the project offers compelling upside potential as the company advances toward its next drilling phase in Q2 2026."

The combination of proven results, systematic targeting, and immediate upcoming catalysts positions Alchemy Resources as a compelling opportunity. Investors seeking exposure to copper exploration with significant scale potential in a proven geological setting should consider the company's approach. The successful identification of these major new copper targets at Alchemy Resources Ltd demonstrates the company's technical capabilities and systematic approach to value creation through disciplined exploration.

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