ALCHEMY RESOURCES LTD (ASX:ALY) Bryah Basin Iron Ore Breakthrough Artwork

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ALCHEMY RESOURCES LTD (ASX:ALY) Bryah Basin Iron Ore Breakthrough

September 21, 2026 • Andrew Musgrave

0:00 | 11:41

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ASX Investment Opportunity - Alchemy Resources Ltd (ASX:ALY)

A junior explorer can’t do everything at once, so the smart ones pick their shots, partner early, and protect the balance sheet while they drill. That’s what we dig into with James Wilson, CEO of Alchemy Resources Limited, after a busy quarter across Western Australia and New South Wales that moves iron ore, copper-gold and gold assets forward while keeping funding front of mind.

We start with the Bryah Basin iron ore project, where Newcam Minerals exercises its option to earn 60% and step into the manager’s seat. James explains why that matters: Newcam brings real iron ore mining experience, integrated haulage and established shipping and sales pathways, while Alchemy is free carried through to a decision to mine. We also unpack what the Valley Bore results suggest about scale and continuity, and what the practical development pathway looks like from flora and fauna studies through to a focused drill-out and the permits needed to prepare for mining.

Then we head to Yellow Mountain, Alchemy’s flagship copper-gold and base metals play, where RC drilling is underway against a backdrop of historic mining, surface mineralisation and a standout intercept of 113 metres at 1.17% copper equivalent. James walks us through induced polarisation geophysics, the logic behind chasing a large anomaly under the mountain, and why a potential porphyry source could be the key to a bigger discovery. We also cover the portfolio refocus via the Karonie and Lake Rebecca sale to Forrestania (and the value of NSR royalties), the Billabong Gold JV with Catalyst Metals, and how $800,000 cash plus a liquid share parcel supports near-term drilling without rushing into dilution.

If you follow ASX resources, mineral exploration drilling, and the reality of funding high-impact targets, hit play, subscribe, share the episode, and leave a review so more investors can find the show.

Andrew Musgrave

Welcome again to ASX Briefs, and today we welcome back James Wilson, the CEO of Alchemy Resources Limited, fresh off a quarter that saw the company advance iron ore, copper gold, and gold projects across Western Australia and New South Wales while sharpening its balance sheet. James, great to have you with me again, and welcome back to the ASX Briefs podcast.

James Wilson

Thanks, Andrew.

Andrew Musgrave

Now to kick things off, we look at the Newcam joint venture. So Newcam Minerals exercised its option in April 2026 to acquire a 60% interest in Alchemy's Bryah Basin iron ore project. Can you unpack what Newcam exercising its option means for the company and how the JV will operate now that Newcam is in the manager's seat?

James Wilson

Thanks, Andrew. Well, to simplify it, Newcam is an iron ore miner. They operate the Mount Gould iron ore mine to the northwest of us in the Bryah. Their experience, they've got an integrated mining haulage and end user relationship for shipping and sales. And as an explorer, that's always a difficult thing to do with iron ore and to go from explorer to miner. It's not just that, it's offshore sales and customers overseas and whatnot. So, it made sense for Alchemy to come to a one-stop shop. Having them as a partner early in the project accelerates that timeline to production. It's got an experienced operator, deep knowledge of project execution because they've done it before and since Alchemy is not the operator, Newcam pushes the project forward and Alchemy's free carry to a decision to mine, which is which is fantastic for us.

Andrew Musgrave

And the Valley Bore results are exceptional. What does that grade, and thickness tell you about the scale of what you found?

James Wilson

Yeah, well, I'll be honest here, geologically, iron all is a tricky one. You might have sort of super high grades on the surface, and it's just usually a surface enrichment. So, you might just have a thin veneer of high grades and there's nothing underneath it. Many areas that have those high grades, as I said and that was always a risk going into drilling, and that's why we're an explorer. So, however, the results of the RC program that we put in definitely showed that wasn't the case. We've got significant width and significant strike extent of the southern ridge mineralization. The grades, as you say, they're very high grade and it represents direct shipping ore. So, our initial drill program was a first pass. It was basically just meant to assess top 50 or 60 meters vertically just to see what was down there. And no one had ever drilled there for before. So, there was not a single drill hole in the thing. So, mineralization remains open at depth, it's a long strike, and we were getting, you know, sort of 50-meter-wide intercepts at plus 62% iron, which was amazing. So, we've got iron ore ridges extending over 2,000 meters long in strike, and we've still got rock chip grades down those ways, sort of miles away from where we're actually drilling, that still have those high grades there. So, it's very positive with a very positive outlook as well.

Andrew Musgrave

With Alchemy-free carried to a decision-to-mine, what does the pathway to development look like from here? And what's the timeline?

James Wilson

Yeah, so the way I understand it, our partner has to complete all the requisite government requirements to push ahead. That's starts with flora and fauna studies in banded iron regions. They're very sensitive to that. So, we have to complete those areas to make sure there's no endangered flora and fauna there. And there has been studies by Alchemy on areas to the north, so we're pretty confident that won't be an issue. Once that's complete, we'll push ahead with the resource drill out. And from what I understand, there's about 70 holes to cover the main southern ridge target. It's more of like a grade control drill out to assess the grade and tonnage of that block. And at the same time, the I think the Newcam guys will put in native vegetation clearing permits to enable them to actually commence mining. Miscellaneous license applications to build the haul road. So, you could build a haul road to go out onto the main road, which is only about eight Ks away to the Great Northern Highway. So, it's going to be a busy 12 months up at Valley Bore, we think, and that work's already started. So, it's very positive.

Andrew Musgrave

Turning now to Yellow Mountain, you've just announced that RC drilling has commenced at Yellow Mountain. So, what are your expectations given Yellow Mountain has already delivered some standout intercepts?

James Wilson

Yellow Mountain is exciting for a number of reasons. It's our flagship project currently for Alchemy. Historically, it had very high-grade copper and gold, lead, zinc, and silver anomalism that was drilled about 40 years ago. I could probably go on for about 15 minutes about what's actually at Yellow Mountain, but as an investor, what you need to understand is there's very high-grade mineralization at surface. We've got 2% rock chips at surface that we haven't sort of followed up with additional drilling. But we were looking at the historic drilling that was down to the to the western area of one of the lodes, and we really wanted to go and test whether the old timers were telling the truth. So, we drilled a hole not quite parallel, but sort of slightly oblique to it last year. And our maiden program returned in really impressive results of 113 metres at 1.17% copper equivalent. So, I could go through it's, copper, gold, lead, zinc, silver in there, but it was just easier to aggregate over that western zone. So that was very positive. It's a big fat zone that sort of sits semi-horizontal, you know, almost horizontally. And we followed that up with IP geophysics, so that's induced polarization, and that's sort of aiming to sort of trace metalliferous responses in the rocks. It's good at tracing buried base metals mineralization, and that returned some pretty enormous anomalies. So, we've got the anomaly where we drilled, where we knew there was base metals, and it came up with a big anomaly over that, which is positive. And then there was another area to the north that hadn't been drilled, and it was about equivalent in size, probably a couple hundred metres long. But the main excitement for us was an anomaly to the east, and that sits underneath the Yellow Mountain. And we think that that could be the porphyry source or a source of hydrothermal fluids, and that's over 750 metres long and you know, sort of 500 metres wide. So, and it remains open along strike to the south because we only finished the survey there. So, it's a very, very exciting target, and we're drilling those targets now. So, aiming to test the large anomaly at depth and looking for a source of that metal, and as well as testing the areas to the west to see if there's any continuation. So very exciting. There's a bunch of existing shafts there on the surface. They mined copper there. There was a little smelter there back in the 1800s. This is an established district of copper metal production. So, you know, we hope to sort of follow up that legacy and find more about that.

Andrew Musgrave

Looking now at the portfolio refocus, the company completed the sale of its Karonie and Lake Rebecca gold projects to Forrestania Resources in May this year. What was behind the decision to divest rather than continue advancing them yourselves?

James Wilson

Well, look, you know, it comes down to economics at the end of the day sometimes. We really liked the Karonie and Lake Rebecca areas. It was a huge greenstone belt we had control over. But it's green field's tenure, and you know, a lot of the market was making what to sort of more advanced developments in the space for explorers. We had close to 1,000 kilometres square to cover just there, plus three active joint ventures in Western Australia, as well as our New South Wales tenure. So, for a small explorer like Alchemy with a limited amount of funds to deploy, you know, you've just got to sort of refine your focus somewhat. And it was either sort of focusing on the green field’s tenure in Western Australia, or it was focusing on the sort of the really thumping copper gold grades out in Yellow Mountain. And we were sort of considering that at the time, and we had a discussion with Forrestania, and they offered us for the projects, and we had a chat and came up with a number we everybody liked. And that sort of gave Alchemy with an NSR on top of that. It gave Alchemy upside with the royalty plus non-dilutive cash injection from Forrestania, and there was sort of a win-win for Alchemy all around. So, it's fantastic. I mean, royalties are an excellent way to have leverage to future production, so we've got a sort of foot in the door there as well. And they're also something you can commoditize. So look, all around the investment in in Forrestania that we've got, it's a liquid cash asset that we can sell at any time, which is which is fantastic.

Andrew Musgrave

Moving now to the Bryah JV under the Billabong Gold JV with Catalyst Metals, what can you tell us about that area?

James Wilson

Well, it's a great area in there, the Bryah. We've seen some very big operations come out of there. We've had Sandfire with their DeGrussa discovery just up the road. Plutonic was operating before and now is operating again just up the road. And we've seen a big resurgence in explorers going into the region. It's a great address. Alchemy's 20% free carry interest on the joint venture we have with Catalyst, which features an extensive ground position. And that sits to the south of Catalyst's Hermes open pit and Alchemy also holds a 1% NSR on that, which is a bit of a money spinner as well, should they start mining it. And to the south, Alchemy's 20% interest covers the Wilgeena open pit resource, as well as numerous satellite prospects at what we call Polaris, Seaborg, and Central Bore. And investors can look those results up anytime. They've been sort of announced some sort of decade ago, exhibited high grade intercepts from previous explorers, including Alchemy. And corporately, the region's been really interesting, though. We've seen Catalyst buys bought up ground either side of us, next to their old highway project, which they bought off Sandfire, and to the west of us that they bought off several explorers. We've also seen the likes of Great Boulder buying Peak Hill off Westgold, and that just sits immediately to the west of Alchemy. So, it's a great area to operate in. There's numerous explorers now sort of buying up ground in the region, very prospective. And yeah, no, we hope there's a lot more news to come out of the area.

Andrew Musgrave

Looking ahead with over $800,000 cash at hand, how are you thinking about funding the next phase of drilling?

James Wilson

Yeah, it's always a question for a small explorer, isn't it? We are capital consumers, so, well, we have cash to complete the drill programs at Yellow Mountain and overflow at the moment, which is a good thing. We've budgeted for that. Importantly, we also have the liquid asset of the Forrestania stock we received from the Karonie transaction, and that's sort of circa of just over seven million Forrestania shares. So that gives us funding anytime if we decided to sell any. That's a great facility to have. It's non-dilutive to shareholders. And obviously, at some point, as I mentioned, we're all capital consumers and we all look for the investor support. But at present, we're funded until we get drill results at Yellow Mountain. We're really excited about the drilling there, what might come of that, what sort of results we'll get, and obviously sort of share price accretion if there's anything positive. So, yeah, we're sort of keeping our powder dry at the moment with some high impact programs underway.

Andrew Musgrave

Now, James, to wrap things up, what should investors be watching for from the company over the next couple of quarters?

James Wilson

Yeah, well, the drilling at Yellow Mountain and Overflow is key. We're drilling some high impact targets there. That will largely inform our next steps out there, which we hope to sort of follow up with diamond drilling if anything's positive to target deeper mineralization down the track. Bryah work is ongoing with the Catalyst JV, they're the operator, and we catch up with them once a quarter to get a download on results. And Newcam, they'll be plugging away, getting permitting underway, and hopefully the flora fauna survey so they can commence drilling up there. And we're also looking at the background of just turning over some of our sort of dormant assets. We've got studies into our alumina assets at West Lynn, which is sets up near Nyngan in New South Wales. We did some work back on that in 2019, and there's potential for further work to advance the high purity aluminium potential at Summervale, but we're still sort of refining our focus and on that and what to do. But you know, once we have more information and plans on that, we'll aim to update investors on what we think could be a very exciting project. So, there's a fair bit going on. And yeah, we hope to update everybody once we get some results.

Andrew Musgrave

Okay, James, it's been great to chat again. It's given us a great cross-section of what's been a very busy quarter, and we look forward to speaking again soon.

James Wilson

Thanks, Andrew.

Andrew Musgrave

That concludes this episode of ASX Briefs. Don't forget to subscribe, and we look forward to catching you on our next episode.