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I enjoyed the game, very much old school like the games that I write myself. However,  there was no indication at the end that the Alchemist had walked past and that it was safe to finish.

Yes, that's sort of true. When you stop getting the message that you can hear him, you know that he's passed. You can follow him, if you like, but that will end in tears. This is only a simple puzzle, but it was incredibly difficult to write and get right.