The company drilled 27 holes as part of the reverse circulation program, focusing on the Taupo, KZ5 and Parmelia prospects at Karonie.
The program returned wide zones of mineralisation along strike and down-dip of existing zones at the three prospects.
Results from KZ5 included 12m at 1.26 grams per tonne gold from 24m, including 8m at 1.41gpt gold; 4m at 3.39gpt gold in from 56m; 1m at 1.87gpt gold from 58m; 4m at 1.25gpt gold from 96m; and 40m at 0.54gpt from 8m; and 2m at 1.25gpt gold from 109m.
Mineralisation at KZ5 has been extended to 500m and is open along strike to the north and south.
The drilling identified a potential new zone of mineralisation to be tested in the northwest section.
Phase one drilling at Karonie
On a recent site visit to Karonie, Alchemy CEO James Wilson said KZ5 probably had the most potential for grade and ounces.
At Taupo, better drilling results included 1m at 2.67gpt from 107m; 4m at 1.72gpt gold from 123m, including 1m at 5.73gpt gold; and 4m at 1.82gpt gold from 48m.
The work extended mineralisation by 150m down-dip, with mineralisation remaining open at depth.
Alchemy will now resample the 4m composites and start 3D modelling of the zones, with a view to potentially calculate maiden resources for the three prospects later this year.
All three remain open at depth, and Alchemy is confident of extending the mineralisation, based on previous work by its neighbour Silver Lake Resources.
"The Silver Lake holes suggest there is still something to be found at depth," Wilson said.
Drilling at the Warrior target returned 4m at 0.66gpt gold and 4m at 0.38gpt gold but was the first program to successfully penetrate and test basement rock.
The drilling intersected favourable gold host geology, black shales and fractionated dolerites with silica alteration and sulphide minerals, which will be followed up in future programs.
RC chips from the Warrior target
Detailed surface mapping at the Southern Karonie tenements is underway as part of planning for a phase two drill planning.
The company is planning 10,000-20,000m of drilling over three phases.
Wilson said the project remained underexplored, with only 10% of the leases covered with anything greater than rotary air blast or aircore drilling, which had been proven to be ineffective.
Karonie sits directly along strike of Silver Lake's 585,000oz Aldiss project and along strike to the south of Breaker Resources' 1.4 million ounce Lake Roe project.
The project contains more than 80km of strike extent extending from Silver Lake Resources' Aldiss mine up towards Northern Star Resources' Carosue Dam operation.
Alchemy had about $1.4 million cash at the end of March.
Wilson, a geologist, joined the company earlier this year after previously spending over a decade as a gold analyst.
Alchemy shares rose by as much as 23% in early trade, reaching 1.6c, but last traded 15.3% higher at 1.5c.
