TIDMUFO
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 , 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:
o Mining rate of 1.25Mtpa with a pre-production capital estimate
of <US$30 million
o Low waste to ore mining ratios
o Operating costs of <US$60/t FOB
o Potential to identify additional resources on the Hancock
licence.
Figure 1: Location of Hancock Iron Ore Project, Western
Australia
Overview of E lizabeth Hill Project and Surrounding Munni Munni
Area
Elizabeth Hill is located 45km southeast of the city of
Karratha, Western Australia. The project is situated in the Pilbara
Craton, a region well-known for precious metal mineralisation.
Elizabeth Hill is recognised as being Australia's highest-grade
silver mine when it was in production between 1999-2000.
Elizabeth Hill had a pre JORC 2012 resource of 4.05Moz of silver
prior to start of mining and was renowned for its exceptional
native silver nuggets and silver wires . Over 1 million ounces of
silver, mainly in the form of nuggets, were produced between
1999-2000 from a single shaft and small processing plant before the
mine was closed due to water inflow. Elizabeth Hill is 100% owned
by the Company and Alien is undertaking a complete review of all
historic data from both surface and underground drilling with a
view to reopening the mine.
The Company also owns the nearby Munni Munni Project (4km
southwest of Elizabeth Hill) which hosts significant PGE
mineralisation. Munni Munni has a historical non JORC compliant
resource of 24Mt at 2.9g/t Platinum Group Metals ("PGM") and gold
for 2.2Moz. This includes 1.14Moz of palladium, 0.83Moz of
platinum, 152koz gold and 76koz of rhodium. The Munni Munni Project
is one of Australia's largest PGM deposits.
Figure 2: Location of EH Project and Munni Munni PGM Ni Cu
Project, Pilbara, Western Australia
Figure 3: Plan view showing historical mine and broader
mineralised area at EH, Pilbara, Western Australia
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% 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.
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.
Competent Person Statement
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 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.
*Thicknesses 4m are composite samples, taken by spearing.
*Thicknesses of 1m are riffle split single metre samples.
*bdl = below detection limit
*Assay results from a Certified Analytical Laboratory, Bureau
Veritas, located in Perth, Western Australia
Appendix
Hole number From To Ag g/t Cu % Pb % Zn % Ni % Co g/t Au g/t Pt g/t Pd g/t Au+Pt+Pd g/t
22AMC001 8 50 377 0.06 0.52 0.08 0.04 43 0.04 bdl 0.16 0.2
----- ---- ------- ----- ----- ----- ----- ------- ------- ------- ------- -------------
including 16 29 1,102 0.10 1.11 0.14 0.07 80 0.08 bdl 0.38 0.48
----- ---- ------- ----- ----- ----- ----- ------- ------- ------- ------- -------------
22AMC002 111 114 34 bdl 0.74 0.01 0.01 bdl 0.01 bdl bdl 0.01
----- ---- ------- ----- ----- ----- ----- ------- ------- ------- ------- -------------
22AMC003 126 134 bdl 0.11 0.01 0.01 0.13 98 0.04 0.05 0.28 0.34
----- ---- ------- ----- ----- ----- ----- ------- ------- ------- ------- -------------
Table 1: Summary Highlight Intersections from Core Drilling,
Elizabeth Hill, November 2022
Hole number Easting MGA94z50 Northing MGA94z50 AHD Depth (m) Collar dip Azimuth (magnetic)
22AMC001 487010 7667942 480 50 -63 90
----------------- ------------------ ---- ---------- ----------- -------------------
22AMC002 486952 7667878 480 120 -62 90
----------------- ------------------ ---- ---------- ----------- -------------------
22AMC003 486940 7667810 480 142 -60 90
----------------- ------------------ ---- ---------- ----------- -------------------
22AMC008 487120 7668080 480 80 -60 90
----------------- ------------------ ---- ---------- ----------- -------------------
22AMC009 487080 7668080 480 80 -60 90
----------------- ------------------ ---- ---------- ----------- -------------------
22AMC010 487040 7668080 480 80 -60 90
----------------- ------------------ ---- ---------- ----------- -------------------
22AMC011 487000 7668080 480 80 -60 90
----------------- ------------------ ---- ---------- ----------- -------------------
22AMC012 486960 7668080 480 80 -60 90
----------------- ------------------ ---- ---------- ----------- -------------------
Table 2: Drill Hole Collar Table
Hole From (m) To Thickness Ag ozt Pb % Ni %
number (m) (m)
22AMC001 16 29 13 35.4 1.11 0.07
--------- ------- ---------- ---------------- ---------------- ---------- ------------ ---------
22AMC001 8 50 42 12.1 0.52 0.04
--------- ------- ---------- ---------------- ---------------- ---------- ------------ ---------
Commodity Prices
Commodity Ag Pb Ni Au
---------------- ---------------- ---------- ------------ ---------
Price as of 14.02.2023 USD $21.82 $2,070 $26,200 $1,865
---------------- ---------------- ---------- ------------ ---------
$/unit US$/ozt US$/tonne US$/tonne US$/ozt
---------------- ---------------- ---------- ------------ ---------
Grade x Commodity Price in USD
22AMC001 16 29 13 $772.4 $23.0 $18.3
--------- ------- ---------- ---------------- ---------------- ---------- ------------ ---------
22AMC001 8 50 42 $264.5 $10.7 $9.5
--------- ------- ---------- ---------------- ---------------- ---------- ------------ ---------
Length x Grade x Commodity Price in USD
Ag Pb Ag+Pb NiEq % AuEq g/t
--------- ------- ---------- ---------------- ---------------- ---------- ------------ ---------
From To (m) Thickness Length weighted Length weighted Ag+Pb 1m of 1% Ni
(m) (m) (length * grade (length * grade value has US$262
as US$) as US$) length then
weighted un-length
weight
--------- ------- ---------- ---------------- ---------------- ---------- ------------ ---------
22AMC001 16 29 13 $10,042 $299 $10,340 3.04 13.3
--------- ------- ---------- ---------------- ---------------- ---------- ------------ ---------
22AMC001 8 50 42 $11,109 $451 $11,559 1.05 4.6
--------- ------- ---------- ---------------- ---------------- ---------- ------------ ---------
Table 3: Metal values used and Calculations for AuEq and NiEq
for Q4 2022 drilling, February 2023
Hole From (m) To (m) Thickness Ag ppm Ag ozt Pb %
number (m) (31.103476)
21EHDD003 5 24.7 19.7 3,198 102.83 0.2669
--------- ------- ---------- ---------------- ---------------- ---------- ------------ ---------
AMEHRC009 38 90 52 704 22.64 0.0093
--------- ------- ---------- ---------------- ---------------- ---------- ------------ ---------
Commodity Price
Commodity Ag Pb Ni Au
---------------- ---------------- ---------- ------------ ---------
Price as of 14.02.2023 USD $21.82 $2,070 $26,200 $1,865
---------------- ---------------- ---------- ------------ ---------
$/unit US$/ozt US$/tonne US$/tonne US$/ozt
---------------- ---------------- ---------- ------------ ---------
Grade x Commodity Price in USD
Hole From (m) To (m) Thickness Ag ozt Pb %
number (m)
--------- ------- ---------- ---------------- ---------------- ---------- ------------ ---------
21EHDD003 5 24.7 19.7 $2,243.7 $5.5
--------- ------- ---------- ---------------- ---------------- ---------- ------------ ---------
AMEHRC009 38 90 52 $ 494.0 $0.2
--------- ------- ---------- ---------------- ---------------- ---------- ------------ ---------
Length x Grade x Commodity Price in USD
Ag Pb Ag+Pb NiEq % AuEq g/t
--------- ------- ---------- ---------------- ---------------- ---------- ------------ ---------
From To (m) Thickness Length weighted Length weighted Ag+Pb 1m of 1% Ni
(m) (m) (length * grade (length * grade value has US$262
as US$) as US$) length then
weighted un-length
weight
--------- ------- ---------- ---------------- ---------------- ---------- ------------ ---------
21EHDD003 5 24.7 19.7 $44,200 $109 $ 44,309 8.58 37.5
--------- ------- ---------- ---------------- ---------------- ---------- ------------ ---------
AMEHRC009 38 90 52 $25,689 $10 $ 25,699 1.89 8.2
--------- ------- ---------- ---------------- ---------------- ---------- ------------ ---------
Table 4: Metal values used and Calculations for AuEq and NiEq
for 2021 drilling, February 2023
Equivalent values of Nickel and Gold have been provided for
illustrative purposes only, to assist with a reader's understanding
of the relative value of Silver and Lead results from EH compared
to more well understood metal values.
Glossary
Halo - A n area of rocks surrounding mineral deposits
(orebodies) enriched in ore-forming elements.
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.
Mineral resource classification - is the classification of
mineral resources based on an increasing level of geological
knowledge and confidence.
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.
Mt - Million Tonnes
Moz - Million Ounces
Koz - thousand Ounces
ozt - Troy Ounces
g/t - Grams per Tonne
Pt - Platinum
Pd - Palladium
Rh - Rhodium
Cu - Copper
Ni - Nickel
Au - Gold
Ag - Silver
Pb - Lead
Zn - Zinc
Co - Cobalt
NiEq - Nickel Equivalent
AuEq - Gold Equivalent
PGM - Platinum Group Metals
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