Despite high hopes, Alloy Resources didn’t strike gold at all during exploration drilling at its flagship Horse Well gold project.

Alloy (ASX:AYR) drilled 86 holes, all up measuring 3,426 metres, to test two targets at Horse Well in the goldfields region of Western Australia to follow up on promising surface sampling results.

No significant gold intersections were returned.

Alloy will complete a further 800m of drilling on three other promising targets within the next two weeks.

Executive chairman Andy Viner told Stockhead that there were plenty more targets at Horse Well that could host new large gold deposits.

“Exploration is often a case of just working your way through these targets — lower priority ones can pop up and change everything,” he said.

“We are still in with a good chance!”

The junior explorer is sole-funding exploration so it can earn up to 60 per cent of Horse Well, a joint venture with gold miner Doray Minerals (ASX:DRM), which is right next door to Northern Star’s (ASX:NST) huge Jundee gold mine.

Alloy’s share price – which has ranged between 0.3c and 1.7c over the past year — was steady at 0.4c by mid-morning.

The Alloy share price over the past 12 months.
The Alloy share price over the past 12 months.

Alloy is also in a copper and gold joint venture with mining giant Rio Tinto in the suddenly-popular Paterson province of Western Australia.

Rumours of a big copper find by mining giant Rio Tinto in the East Pilbara have increasingly piqued investor interest in a handful of juniors, including Alloy, active in the area.

The pair struck a deal that gives Rio Tinto (ASX:RIO) the right to earn up to 70 per cent of an Alloy project called “Telfer” by spending $500,000 and drilling 500m within three years.

Alloy – which is an explorer and earns no income — had about $635,000 in the bank by the end of September, but boosted its bottom line through a $440,000 capital raising in October.