REG - Alien Metals Limited - High grade DSO confirmed at Hancock Project

Alien MetalsAnnouncement

20/09/2023 07:00

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RNS Number : 0465N  Alien Metals Limited  20 September 2023

 

Trading Symbols

AIM: UFO

FWB: I3A1

20 September 2023
 

 

Alien Metals Ltd

("Alien" or "the Company")

 

Significant intersections of high grade Direct Ship Ore ("DSO") confirmed at
Hancock Project, including 78.2 metres at 60.4% Iron

 

Alien Metals Ltd (AIM: UFO), a minerals exploration and development company,
is pleased to announce  that all results from the recent resource definition
core drilling programme at its 90% owned Hancock Iron Ore Project ("Hancock
Project"), in the Pilbara Region, Western Australia, have been received.

Highlights:

·   13 diamond core holes were drilled during Q2 2023 for a total of 1049
metres ("m") at the Company's Sirius Deposit, with the initial batch of assays
reporting high-grade mineralisation (AIM: 20 July 2023).

·   These final assay results confirm exceptional direct ship ore grades,
as well as excellent widths and depth continuity of the proposed Sirius Mining
Pit.

·   Significant results from the final tranche of assays include:

o  52.8m @ 60.9% iron ("Fe") from 1m including high-grade intercepts of 40m @
61.5% Fe from 13m from Drill Hole 23IHD013

o  61.2m @ 60.8% Fe from 1m including high-grade intercepts of 31.9m @ 61.6%
Fe from 22.2m from Drill Hole 23IHD010

o  57m @ 60.6% Fe from 13m including high-grade intercepts of 40.5m @ 61.3%
Fe from 27m from Drill Hole 23IHD008

o  78.2m @ 60.4% Fe from 43.7m including high-grade intercepts of 11.3m @
61.0% Fe from 110.6m from Drill Hole 23IHD007

o  98.5m @ 59.4% Fe from 1.5m including high-grade intercepts of 47.3m @
60.3% Fe from 14.1m and 9m @ 62.6% Fe from 91m from Drill Hole 23IHD005

·   This final tranche compliments and reinforces grade from the first
tranche of assay results (AIM: 20 July 2023):

o  26.9m @ 60.03% Fe from 13.9m including a high-grade intercept of 12m @
61.2% Fe from 28.8m, and 16.1m @ 59.75% Fe from 46.9m including a high-grade
intercept of 9.9m @ 61.03% Fe from Drill Hole 23IHD003

o  49.0m @ 59.29% Fe from 14.0m including high-grade intercepts of 8m @
60.70% Fe from 17m, 9.0m @ 61.51% Fe from 36.0m and 12.0m @ 60.58% Fe from
51.0m from Drill Hole 23IHD006

 

Troy Whittaker, Chief Executive Officer commented:

"These significant results continue to showcase the abundant potential we have
at our Hancock Project. The results demonstrate high-grade, direct ship ore at
substantial intersections which continue to underpin further confidence in the
resource.

As an outcome of this resource definition drilling, we will in the coming
months update the Hancock Project Resources and Reserves."

Further Information

Figure 1: Location of the Company's Iron Ore Projects, Western Australia

The Company completed 13 diamond core holes in Q2 of 2023 for a total of
1,049m drilled at the proposed Sirius Mining Pit.

Figure 2: Location of the Resource definition drilling at the Sirius Deposit

Figure 3: Sirius Mining Pit plan view

The drilling was designed to support a planned update through likely higher
confidence levels to the existing Mineral Resource Estimate and subsequent
Mining Reserves (after the mining studies are completed) at the Sirius Pit.
These updated resources and reserves will form part of the Company's updated
Feasibility Study. All holes were also logged for geotechnical parameters to
enable a Geotechnical Study to be completed to support the Definitive
Feasibility Study and mine design process.

The results from this drilling programme continue to increase the Company's
confidence in the Hancock Project as they demonstrate excellent direct ship
grades and wide mining widths available to support proposed production rates.
Importantly, this round of core drilling confirms that the mineralisation
continues at depth and is likely to extend beyond the existing Mineral and
Mining Inventory pit design, as seen in the cross-section below.

Figure 4: Drilling cross-section of drill holes 23IHD006 and 23IHD007 overlaid
with existing Mineral Resource Estimate

Table 1 - Summary of significant high-grade iron ore drillhole interceptions,
Sirius Deposit (*max 4m internal dilution, cut off >=56% Fe)

 Hole ID    From (m)  To (m)  Width (m)  Grade Fe%
 23IHD001   5.2       18      12.8       56.2
 23IHD002   1.5       14      12.5       56.9
 23IHD002   52.3      93.8    41.5       50.0
 including  52.3      64.1    11.8       61.1
 23IHD004   14.4      44.3    29.9       58.5
 including  29.5      44.3    14.8       60.4
 23IHD005   1.5       100     98.5       59.4
 including  14.1      61.4    47.3       60.3
 including  91        100     9          62.6
 23IHD007   17        31.7    14.7       57.0
 including  26        31.7    5.7        60.9
 23IHD007   43.7      121.9   78.2       60.4
 including  43.7      92.3    48.6       60.9
 including  110.6     121.9   11.3       61.0
 23IHD008   13        70      57         60.6
 including  15.6      21      5.4        61.0
 including  27        67.5    40.5       61.3
 23IHD009   1         51      50         58.3
 including  43.4      51      7.6        60.1
 23IHD010   1         62.2    61.2       60.8
 including  6         18      12         61.2
 including  22.2      54.1    31.9       61.6
 23IHD011   0         55      55         60.5
 including  1.7       30.6    28.9       60.8
 23IHD012   0         40      40         59.9
 including  1.5       26.7    25.2       61.0
 including  31.6      40      8.4        61.3
 23IHD013   1         53.8    52.8       60.9
 including  13        53      40         61.5

* Drilling depths are from surface

Table 2 - Hole ID's (Only holes with assays results received are reported)

 Hole ID   Easting MGA94z50  Northing MGA94 z50  RL AHD  Depth (m)  Collar dip  Collar azimuth (magnetic)

 23IHD001  779369            7429840             569     63.8       -50.2       193.0
 23IHD002  779398            7429786             576     93.8       -48.0       11.4
 23IHD004  779494            7429812             604     59.1       -47.4       190.4
 23IHD005  779507            7429855             600     118.92     -53.3       189.3
 23IHD007  779584            7429855             599     142.7      -48.3       190.4
 23IHD008  779525            7429800             604     110        -59.1       33.1
 23IHD009  779663            7429776             579     61.6       -50.6       192.4
 23IHD010  779707            7429738             576     70         -40.0       32.7
 23IHD011  779737            7429757             574     55         -50.4       189.8
 23IHD012  779731            7429756             574     40         -50.2       12.1
 23IHD013  779661            7429776             579     61.2       -60.4       12.2

Sample analysis and QA/QC

All samples generated from the drilling were dispatched to ALS Perth.

Samples were analysed for their Iron Ore Package Analysis with XRF finish,
which includes Fe, Aluminum ("Al"), Calcium ("Ca"), Potassium ("K"), Magnesium
("Mg"), Manganese ("Mn"), Sodium ("Na"), Phosphorus ("P"), Sulfur ("S") and
Silicon ("Si"). This is the same as the analysis and laboratory used in all of
Alien's analysis work on these projects to maintain consistency and
comparability between all analyses.

For QA/QC purposes, Alien used the industry standard of inserting 5% Certified
Reference Material ("CRM") samples, 5% Blanks plus duplicate samples at
source. The CRMs were sourced from Geostats Pty Ltd, Perth, WA, a global
leader in the manufacture and sale of CRMs.

The results of the standard, duplicates and blanks are all within acceptable
variance of expected analytical results.

Hancock Project JORC Reserves and Resources (AIM: 26 April 2023)

Table 3 - Hancock Project Ore Reserves

 Material  Tonnes (Mwmt)  Volume (Mbcm)  Fe %   SiO2 %  Al2O3 %  P %   LOI %  Mn %
 Proved
 Probable  1.9            0.7            60.16  5.69    3.54     0.12  3.85   0.02
 Total     1.9            0.7            60.16  5.69    3.54     0.12  3.85   0.02

 

Table 4 - Hancock Mining Inventory

 Material      Tonnes (Mwmt)  Volume (Mbcm)  Fe %   SiO2 %  Al2O3 %  P %   LOI %  Mn %
 Unclassified  4.2            1.6            60.51  4.11    3.53     0.15  4.74   0.04
 Total         4.2            1.6            60.51  4.11    3.53     0.15  4.74   0.04

 

Table 5 - Mineral Resource

 Classification Category  Prospect          Mass (million tonnes)  Average Value
                          Fe %                                     SiO2 %       Al2O3 %  P %   LOI %  Mn %
 Indicated                Sirius Extension
                          Ridge C           0.7                    60.9    4.9  3.27     0.12  3.7    0.03
                          Ridge E           1.0                    61.0    5.2  3.30     0.12  3.4    0.02
 Sub Total - Indicated                      1.7                    61.0    5.1  3.29     0.12  3.5    0.02
 Inferred                 Sirius Extension  6.7                    60.1    4.1  3.71     0.17  5.2    0.05
                          Ridge C           0.4                    60.8    4.6  3.07     0.14  4.4    0.03
                          Ridge E           0.3                    59.8    4.9  3.64     0.17  5.0    0.03
 Sub Total - Inferred                       7.4                    60.1    4.2  3.67     0.17  5.2    0.05
 Total                                      9.1                    60.3    4.3  3.60     0.16  4.9    0.04

Competent Person Statements

The information in this announcement relating to Ore Reserves is based on
information compiled by Mr. Jeremy Peters, a Director of Burnt Shirt Pty Ltd,
a Fellow of The Australian Institute of Mining and Metallurgy (AUSIMM) and
Chartered Professional Geologist and Mining Engineer of that organisation who
has sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity that he is
undertaking, to qualify as a Competent Person as defined in the 2012 Edition
of the 'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Mr. Peters consents to the inclusion in the
document of the information in the form and context in which it appears.

The information in this announcement that relates to the Hancock Mineral
Resources is based on information compiled by Mr. Howard Baker, a Competent
Person who is a Fellow of the Australasian Institute of Mining and Metallurgy
and is an employee by Baker Geological Services Ltd. Mr. Baker has sufficient
experience relevant to the style of mineralisation and type of deposit under
consideration and to the activity which they are undertaking to qualify as a
Competent Person as defined in the 2012 edition of the 'Australasian Code for
the Reporting of Exploration Results, Mineral Resources, and Ore Reserves
(JORC Code)'. Mr. Baker consents to the disclosure of information in this
report in the form and context in which it appears.

The information in this announcement that relates to Exploration Results, is
based on information compiled by Mr. Bradley Toms, who is the Exploration
Manager and a full-time employee of Alien Metals Ltd. Mr. Toms is a Member of
The Australian Institute of Geoscientists and has sufficient experience which
is relevant to the style of mineralisation and type of deposit under
consideration and to the activity that he is undertaking, to qualify as a
Competent Person as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr.
Toms consents to the inclusion in the document of the information in the form
and context in which it appears. Mr Toms has declared that he holds
Performance Rights in the Company.

For further information please visit the Company's website
at www.alienmetals.uk or contact:

 

Beaumont Cornish Limited (Nomad)

James Biddle / Roland Cornish   Tel: +44 (0) 207 628 3396

 

WH Ireland Ltd

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

 

Notes to Editors:

Alien Metals Ltd is a mining exploration and development Company listed on the
AIM market of the London Stock Exchange (LSE: UFO). The Company's focus is on
delivering a profitable, long life direct shipping iron ore operation based
out of the Pilbara in Western Australia. In 2019, the Company acquired 51% of
the Brockman and Hancock Ranges high-grade (Direct Shipping Ore) iron ore
projects and in December 2022 moved to 90% legal and beneficial ownership. The
Company also acquired 100% of the Vivash Gorge Iron Ore project in the west
Pilbara in July 2022.

The Company acquired 100% of the Elizabeth Hill Silver Project, which consists
of the Elizabeth Hill Historic Mining Lease and the 115km(2) exploration
tenement around the mine.

In March 2022 the Company acquired 100% of the former joint venture interest
in the Munni Munni Platinum Group Metals and Gold Project in the West Pilbara,
Western Australia, one of Australia's major underexplored PGE and base metals
projects. Munni Munni holds a historic deposit containing 2.2Moz 4E PGM:
Palladium, Platinum, Gold, Rhodium and sits within the Companies Pinderi Hills
prospective Nickel, Copper and PGM  tenements.

In May 2023, the Company acquired 100% of Mallina Exploration Pty Ltd and with
it, the Western Hancock Tenement. The new tenement adjoins the Company's
existing Hancock tenement, giving the entire Hancock project direct access to
the Great Northern Highway.

The Company also holds silver, copper and base metal projects in various
locations around the world however is currently looking at the best way to
divest these for the benefit of shareholders.

Glossary

Indicated Mineral Resource - That part of a Mineral Resource for which
quantity, grade (or quality), densities, shape and physical characteristics
are estimated with sufficient confidence to allow the application of Modifying
Factors in sufficient detail to support mine planning and evaluation of the
economic viability of the deposit.  Geological evidence is derived from
adequately detailed and reliable exploration, sampling and testing gathered
through appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes, and is sufficient to assume geological and
grade (or quality) continuity between points of observation where data and
samples are gathered.

Inferred Mineral Resource - That part of a Mineral Resource for which quantity
and grade (or quality) are estimated on the basis of limited geological
evidence and sampling. Geological evidence is sufficient to imply but not
verify geological grade (or quality) continuity. It is based on exploration,
sampling and testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes.  An
Inferred Mineral Resource has a lower level of confidence than that applying
to an Indicated Mineral Resource and must not be converted to an Ore
Reserve.  It is reasonably expected that the majority of Inferred Mineral
Resources could be upgraded to Indicated Mineral Resources with continued
exploration.

Mining Proposal - A document submitted to the local state authority for
approval by the Department of Mines, Industry Regulation and Safety (DMIRS),
that is required before any mining operations can commence.

Mineral Resource - A concentration or occurrence of solid or liquid material
of economic interest in or on the Earth's crust in such form, grade (or
quality), and quantity that there are reasonable prospects for eventual
economic extraction. The location, quantity, grade (or quality), continuity
and other geological characteristics of a Mineral Resource are known,
estimated or interpreted from specific geological evidence and knowledge,
including sampling. Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated and Measured categories.

Mining Schedule -the sequencing of operations and the assignment of equipment
and people, to ensure that the intended sequencing and production targets are
realized

Mineral resource classification - is the classification of mineral resources
based on an increasing level of geological knowledge and confidence.

Minig Inventory - A generated mining inventory for scheduling, by pit. This
mining inventory is inclusive of the Ore Reserve and is not to be conflated
with an Ore Reserve. A mining inventory has no definition under the JORC Code
and its absolute economic viability has not been demonstrated. The mining
inventory comprises that proportion of the Inferred Mineral Resource that
reports to a pit optimisation but is excluded from inclusion in an Ore Reserve
by its classification. Its financial viability has not been demonstrated and
it is premised on both Indicated and Inferred Resources and unclassified
mineralisation.

Ore Reserves - the parts of a Mineral Resource that can, at present, be
economically mined

RL AHD - Reduced Levels Australian Height Datum

DSO - Direct Shipping Ore

Fe - Iron

Al - Aluminium

Ca - Calcium

K - Potassium

Mg - Magnesium

Mn - Manganese

Na - Sodium

P - Phosphorus

S - Sulphur

Si2O3 - Silica

Mt - Million Tonnes

BIF - Banded Iron Formation

 

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