REG - Alien Metals Limited - Exploration and Corporate Update
20/02/2023 08:00
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RNS Number : 4152Q Alien Metals Limited 20 February 2023
Trading Symbols
AIM: UFO FWB: I3A1
20 February 2023
Alien Metals Ltd
("Alien Metals" or "the Company")
Exploration and Corporate Update
Alien Metals Ltd (LSE AIM:UFO), a global minerals exploration and development
company, is delighted to provide an update on Exploration and Corporate
Activities for its Australian Operations. This includes drill results from
Elizabeth Hill, Australia's highest grade silver deposit, as well as a
progress update from its wholly owned subsidiary, Iron Ore Company of
Australia Pty Ltd ("IOCA") 90% owner and operator of the Company's flagship
development, the Hancock Iron Ore Project (the "Hancock").
Highlights
· High-grade Elizabeth Hill ("EH") results received
· Re-interpretation of EH geological model extends area of known mineralisation and demonstrates potential for a high-grade bulk tonne silver rich polymetallic orebody at Elizabeth Hill
· IOCA now in receipt of final fixed price tender responses from all suppliers for the development of the Hancock Project
Analytical results for hole 22AMC001 received. Hole successfully designed and drilled to confirm extensions to the main silver lode. High grade results include:
· 42 metres ("m") at 12.1 troy ounces ("ozt") of silver ("Ag") and 0.52% lead ("Pb") from a depth of 8m.
o Equivalent to 42m at 1.05% nickel ("Ni")
o Equivalent to 42m at 4.6 grammes per tonne ("g/t") gold ("Au")
· Including 13m at 35.4ozt Ag, 1.11% Pb and 0.48 g/t gold-platinum-palladium ("Au+Pt+Pd") from 16m
o Equivalent to 13m at 3.04% Ni
o Equivalent to 13m at 13.3g/t Au
Re-examination & reinterpretation of EH data demonstrates a far larger
high-grade/high-volume mineralised envelope. Re-analysis of historical
drilling located within this newly identified mineralised envelope returned
the following results.
· 52m at 22.6ozt Ag and 0.009% Pb from AMEHRC009
o Equivalent to 52m at 1.89% Ni
o Equivalent to 52m at 8.2 g/t Au
• 19.7m at 102.8ozt Ag and 0.27% Pb from 21EHDD003.
o Equivalent to 19.7m at 8.58% Ni
o Equivalent to 19.7m at 37.5g/t Au
Eight holes in total were drilled at EH. Five holes in a single fence several hundred metres to the north failed to identify the felsic / mafic contact suggesting a change in trend of the mineralisation. A detailed review will be undertaken prior to additional drilling being undertaken.
Two holes designed to extend the mineralised envelope down dip and to the south also failed to reach target depth due to excess water inflow, presumably from the flooded mine. It is expected that these two holes will be completed by adding a diamond tail when a suitably purposed rig is in the area to reduce mobilisation costs. Therefore, these extensions of the orebody remain untested.
Of significance, findings from a re-evaluation of EH strongly indicates the
original EH high-grade, narrow silver vein is in fact the high-grade core of a
much larger mineralised halo. An example of this is the recent drill result of
42 metres at more than 12 troy ounces of silver.
This new geological understanding opens the possibility for a significantly
larger mineralised system at surface.
Results to date confirm and enhance the Company's view EH could be a
significant deposit of metal. Drilling reported anomalous Au, Pt and Pd over
the same interval, all of which points to a potential poly-metallic occurrence
at depth.
Hancock Mine Development Update
IOCA has now received final fixed price tender responses from suppliers for
the development of the Hancock Project DSO iron project. Pleasingly, all
responses are in line with Scoping Study estimates and continue to demonstrate
strong project economics. The Company will now start the selection process
for preferred partners and move into detailed contract drafting.
The Company continues to progress Native Title approvals as well as other
permitting necessary to start production. Providing guidance as to a timeline
for completion is difficult as many aspects are outside the company's control
or involve commercial and legal sensitivities that are subject to negotiation
and documentation. The Company appreciates stakeholder patience on these
aspects and would like to reassure shareholders the Company is working hard
towards its stated goals and will update shareholders once complete. Once
Native Title is completed, the Company will immediately submit a Mining
Proposal for State Approvals of the Project which is expected to take between
2-3 months for approval from submission. The Company intends to start civil
and site works immediately after Native Title is received in parallel to the
grant of the mining licence.
Upcoming Work Programmes
• Drill results at Munni Munni for Ni & Cu expected soon.
• Maiden Ore Reserve for the Hancock Project
• Updated Feasibility Study to reflect supply chain engagement and
tender responses for the Hancock Project
• Documenting agreements for various services and logistical
providers
Rod McIllree, Executive Chairman, commented:
"We continue working through an updated economic study for Hancock and I'm
pleased to report that the investment remains an attractive opportunity for
the Company and its stakeholders. Its development is our primary objective. In
the coming months we expect to deliver an updated resource, an updated
feasibility study, conclude contracts associated with mining, transport and
material handling as well as finalise financing necessary to facilitate an
investment decision.
Furthermore, results from recent drilling as well as a bottom-up
re-examination of Elizabeth Hill are highly encouraging. When these drill
results are put in terms of nickel and gold equivalents (such as 19.7m at
8.58% nickel or 52m at 8.2 g/t gold) what emerges is an insight into the
potential value of this newly recognised broader mineralised system and the
economic implications of such. Elizabeth Hill has just evolved into something
much more serious certainly for the exploration team who through their hard
work this significant discovery has been made."
For further information please visit the Company's website at
www.alienmetals.uk (http://www.alienmetals.uk) , or contact:
Beaumont Cornish Limited (Nomad)
James Biddle / Roland Cornish
Tel: +44 (0) 207 628 3396
WH Ireland Ltd (Joint Broker)
Harry Ansell / Katy Mitchell
Tel +44 (0) 207 220 1666
BlytheRay (Financial PR)
Tim Blythe / Megan Ray / Said Izagaren
Tel: +44 (0) 20 7138 3204
Further Information
The programme of reverse circulation drilling at Elizabeth Hill comprised of
eight holes for a total of 709m. 5 regional holes were drilled in one line
several hundred metres to the north but failed to identify any structure
suggesting a change in trend of the mineralisation. Two holes will be
re-entered and completed using a diamond drill rig to push past the water into
the mineralised envelope. The mineralisation, as intersected in this drilling,
is on the contact of a structurally controlled contact between granite and
ultramafic rocks thought to create a metal receptive reactive shear zone as
well as a metal rich liquid highway. The main high-grade vein of silver
plunges steeply to the south and testing of interpreted parallel structures
will be part of future drilling. The polymetallic nature of the
mineralisation, with Pb values up to 2.09% (22AMC001) recorded, has not been
fully accounted for in previous work demonstrating potential for additional
product co and by product including Pb, Au, Pt and Pd.
Hancock Project Overview
The Hancock Project, 18km north of Newman, Australia hosts a JORC compliant
Inferred Mineral Resource of 10.4 million tonnes ("Mt") at 60.4% iron ("Fe")
(Announcement: 22 September 2021). The independent Scoping Study
(Announcement: 19 October 2021), commissioned by the Company demonstrated
exceptionally strong returns, with highlights including:
• Optimisations completed using an iron ore price of US$100/t result
in the design pits extracting all the initial JORC resources identified to
date (10.4Mt at 60.4% Fe)
• Initial Life of Mine studies show the current resource will sustain
an eight-year mine life based on the following parameters:
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