Trading Symbols
AIM: UFO
FWB: I3A1
12 November
2019
Alien Metals
Ltd
(“Alien”, “Alien Metals” or “the Company”)
Site visits
confirm DSO iron ore potential up to 65% Fe at Hancock Ranges and
Brockman projects
Alien Metals Limited, the AIM quoted mineral exploration and
development company, is pleased to provide shareholders with an
update following the recent site visit undertaken by its technical
consultants as part of the due diligence on the Hancock Ranges and
Brockman iron ore projects. The Company has an exclusive option to
acquire 51% of these projects and the site visit has formed part of
the due diligence by Alien (see the Company’s announcement dated
20 September 2019 for further
information on these projects and the option).
Highlights:
- Independent laboratory analysis of 17 rock chip samples taken
from both tenements has highlighted the high-grade direct shipping
ore (DSO) potential
- Results suggest that both projects potentially host iron ore
mineralisation comparable to that being mined by the major
operating companies in the region. High-grade assay results
include:
- Sirius Extension prospect: 64.2% Fe
- Kalgan prospect: 63.9% Fe
- BHP 20 prospect: 60.3% Fe
- BHP 19 prospect: 65.4% Fe
- The site visit confirmed the locations of the 2013/14 Volta
Mining RC drill hole collars and the interpreted mineralised zones
suggested to be within the Hancock Ranges project area
- The site visit also confirmed excellent potential of the Kalgan
prospect in the Hancock Ranges project to host significant tonnages
of DSO grade iron ore
- Initial geological mapping and sampling of the historic BHP 20
deposit on the periphery of the Brockman project indicates that the
mineralisation extends onto the project tenement
- Option period mutually extended by 15 days, to 18 November 2019
Technical Director of Alien Metals, Bill
Brodie Good, commented that “the initial assay results
and geological information from the technical due diligence field
trip are highly encouraging. Of the 17 samples taken across the two
projects, numerous assays returned greater than 60%+ Fe, which is
direct shipping ore quality, and the brief geological mapping
carried out further enhanced the perceived potential of both
projects. The assay results corroborate sampling and drilling
undertaken by Volta Mining in 2014 at the Hancock Ranges project,
and also the significant potential at the Brockman Iron project,
where major iron ore companies are drilling on adjacent
tenements.”
The location of the Brockman Iron and Hancock Ranges tenements
are set out in figure 1:
https://www.alienmetals.uk/assets/img/190920_figure1.jpg
Independent assay results
A total of 17 iron ore rock chip samples were taken in the
course of the due diligence field work. These samples were
initially analysed in the field by a portable X-ray fluorescence
device (“PXRF”) followed by full analysis by Li Borate
fusion/XRF analysis at the independent Intertek Genalysis
laboratory, Perth, Western Australia.
A full table of the assay results is included below.
The geological due diligence carried out along with the
supporting assay results confirm the presence of high-grade DSO
material within all project targets, identifying areas for
follow-up exploration.
Site visit summary
Brockman Iron Project(E47/3953)
The BHP20 Deposit appears to be many metres thick in
slope exposure, a couple of hundred metres in width, and to dip
gently 20 degrees to the north and to plunge gently towards 240
degrees. It therefore plunges NW across the body of E47/3953,
beneath which it could potentially continue at accessible
depths.
Photographs of the iron ore outcrop and sample sites for P592810
and P592812 “BHP20 deposit” at the Brockman Iron Project are set
out in figures 2 and 3:
https://www.alienmetals.uk/assets/img/191112_figure2.jpg
https://www.alienmetals.uk/assets/img/191112_figure3.jpg
The locations of samples with assay results taken in
October 2019 at the BHP20 prospect,
Brockman Project, are set out in figure 4:
https://www.alienmetals.uk/assets/img/191112_figure4.jpg
The BHP19 Deposit is located in the far SW corner of
E47/3953, and it dips and plunges to the NW, out of the lease, into
the adjoining Fortescue Mining Group (FMG) ground. FMG have
an active grid drilling programme on the adjacent ground, exploring
the NW continuation of the BHP19 Deposit and also what appears to
be a considerable deposit of derived detrital iron formation
deposited on its immediate southwest side.
The locations of samples with assay results taken in
October 2019 at the BHP19 prospect,
Brockman Project, are set out in figure 5:
https://www.alienmetals.uk/assets/img/191112_figure5.jpg
Hancock Ranges
Project (E47/3954)
At the Sirius Extension prospect, the drill collars from
RC drilling undertaken by Volta Mining in 2014 were located during
the site visit. One of these holes (Hole 14SERC004) returned
126m @ 60.28% Fe from
surface.
From the site visit, additional parallel fold/fault-repeated
outcrops of similar iron formation just to the southwest of the
historical drilling were also noted. The observed
mineralisation is part of the larger Sirius deposit (124Mt at 60.3% Fe) on the adjoining Brockman
leases and there does appear to be potential for discovery of
nearby additional iron mineralisation within the Sirius
Extension prospect.
The locations of samples with assay results taken in
October 2019 at the Sirius Extension
prospect, Hancock Ranges Project, are set out in figure 6:
https://www.alienmetals.uk/assets/img/191112_figure6.jpg
From the ground traverse made during this initial site visit
over the Kalgan prospect the mineralisation appeared
patchily exposed at surface, as sub-crop and rubble, over a
significant area, extending perhaps 500m from SSE to NNW and 200m from E to W. Further to an initial
photo-geological study as part of the due diligence its expression
suggests that it may be controlled by a zone of NW-SE faulting that
cuts across the WNW-ESE stratigraphy.
The locations of samples with assay results taken in
October 2019 at the Kalgan Prospect,
Hancock Ranges Project, are set out in figure 7:
https://www.alienmetals.uk/assets/img/191112_figure7.jpg
As announced by Alien on 20 September
2019, historic exploration has identified mineralisation at
surface in the Kalgan prospect, with Volta Mining reporting eight
rock chip samples which returned grades of up to 68.7% Fe in the
prospect area. Assay results from Alien’s recent due diligence site
visit confirm these high-grade results, with assay results for the
three Kalgan samples returning grades up to 63.9% Fe.
Next Steps
The site visit and independent laboratory results has reaffirmed
the Company’s views on the exploration potential of both of the
Windfield projects. Following the receipt of the complete due
diligence report, the Company will be in a position to make a
decision on proceeding with the 51% project acquisition. In
conjunction with the Company’s technical consultants, the Board
will design a field program to follow up the most prospective DSO
areas to get a better understanding of the potential extent of
mineralisation.
Table 1: Assay results, site visit
samples, Hancock Ranges and Brockman Projects, October 2019
|
|
|
|
Sample Nbr |
Tenement |
Prospect |
Fe
(%) |
Al
(%) |
Si
(%) |
P
(%) |
P592801 |
Hancock
Ranges |
Sirius
Extension |
62.54 |
1.46 |
1.33 |
0.21 |
P592802 |
Hancock
Ranges |
Sirius
Extension |
58.41 |
1.5 |
1.38 |
0.08 |
P592803 |
Hancock
Ranges |
Sirius
Extension |
64.16 |
0.49 |
1.32 |
0.13 |
P592804 |
Hancock
Ranges |
Kalgan |
63.9 |
1.41 |
1.84 |
0.13 |
P592805 |
Hancock
Ranges |
Kalgan |
49.93 |
1.35 |
2.37 |
0.05 |
P592806 |
Hancock
Ranges |
Kalgan |
62.7 |
1.06 |
1.75 |
0.16 |
P592808 |
Brockman Iron |
‘BHP20’ |
60.27 |
3.16 |
2.71 |
0.09 |
P592809 |
Brockman Iron |
‘BHP20’ |
57.98 |
3.23 |
6.87 |
0.09 |
P592810 |
Brockman Iron |
‘BHP20’ |
57.76 |
2.18 |
6.84 |
0.10 |
P592811 |
Brockman Iron |
‘BHP20’ |
49.86 |
1.35 |
21.3 |
0.09 |
P592812 |
Brockman Iron |
‘BHP20’ |
55 |
0.99 |
13.57 |
0.15 |
P592818 |
Brockman Iron |
‘BHP19’ |
57.5 |
1.54 |
7.7 |
0.13 |
P592819 |
Brockman Iron |
‘BHP19’ |
58.46 |
1.99 |
4.21 |
0.09 |
P592820 |
Brockman Iron |
‘BHP19’ |
59.24 |
1.83 |
3.55 |
0.08 |
P592821 |
Brockman Iron |
‘BHP19’ |
65.43 |
1.22 |
0.93 |
0.13 |
P592822 |
Brockman Iron |
‘BHP19’ |
64.29 |
1.89 |
1.44 |
0.09 |
P592823 |
Brockman Iron |
‘BHP19’ |
59.1 |
3.93 |
3.2 |
0.07 |
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
For further information please visit the Company’s website
at www.alienmetals.uk, or
contact:
Alien Metals
Limited
Bill Brodie Good, Technical Director
David Taylor, Company Secretary
Tel: +44 (0)20 7887 6599 |
First Equity
Limited (Joint - Broker)
Jason Robertson
Tel +44 (0)20 7374 2212 |
Beaumont Cornish
Limited (Nomad)
James Biddle/ Roland Cornish
www.beaumontcornish.com
Tel: +44 (0) 207 628 3396 |
Novum Securities
Limited (Joint - Broker)
Jon Belliss
Tel +44 (0)20 7399 9425 |
Notes to Editors
Alien Metals Ltd is an AIM quoted mining exploration and
development company. Since the recomposition of the Board and
company name change in 2018, Alien has focused on delivering its
strategy of acquiring mining projects which demonstrate significant
development upside, in jurisdictions with established
infrastructure and mining codes, and where strong operational
controls can be assured.
In addition to progressing its acquisition-led strategy,
following the strategic review of its portfolio of projects in
Mexico during 2018-19, the Company
has identified exploration targets across its 12 mining concessions
in Zacatecas, Mexico, which it is
working to advance systematically.
Competent Person
Declaration
The information in this release that relates to Exploration
Results has been reviewed by Mr. Howard
Baker, an independent technical consultant to the Company.
Mr. Baker is a Chartered Professional Fellow of the Australasian
Institute of Mining and Metallurgy (Membership Number 224239) and a
Competent Person as defined by the rules of International Reporting
Codes that are aligned with CRIRSCO. Howard
Baker has sufficient experience that is relevant to the
style of mineralisation and type of deposit under consideration and
to the activity being undertaken to qualify as a Competent Person
as defined in the 2012 Edition of the ‘Australasian Code for
Reporting of Exploration targets, Exploration Results, Mineral
Resources and Ore Reserves’, also known as the JORC Code. The JORC
code is a national reporting organisation that is aligned with
CRIRSCO. Howard Baker consents to
the inclusion in the announcement of the matters based on his
information in the form and context in which they appear.
Forward-Looking Information
This press release contains certain “forward-looking
information”. All statements, other than statements of historical
fact that address activities, events or developments that the
Company believes, expects or anticipates will or may occur in the
future are deemed forward-looking information.
This forward-looking information reflects the current
expectations or beliefs of the Company based on information
currently available to the Company as well as certain assumptions,
including the availability of sufficient funds. Forward-looking
information is subject to a number of significant risks and
uncertainties and other factors that may cause the actual results
of the Company to differ materially from those discussed in the
forward-looking information, and even if such actual results are
realised or substantially realised, there can be no assurance that
they will have the expected consequences to, or effects on the
Company.
Any forward-looking information speaks only as of the date on
which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking information, whether as a result of new
information, future events or results or otherwise. Although the
Company believes that the assumptions inherent in the
forward-looking information are reasonable, forward-looking
information is not a guarantee of future performance and
accordingly undue reliance should not be put on such information
due to the inherent uncertainty therein.
Glossary
BIF |
Banded Iron Formation |
Breccia |
rock consisting of angular fragments
of stones cemented by finer calcareous material |
CRM Standard |
'controls' or standards used to
check the quality and metrological traceability of products, to
validate analytical measurement methods, or for the calibration of
instruments |
Detrital |
particles of rock derived from
pre-existing rock through processes of weathering and erosion |
DSO |
direct shipping ore. naturally
occurring high-grade iron ore that does not require processing
prior to transport |
PXRF |
a handheld/portable X-ray
fluorescence device used in analysing composition of rocks |
Subcrop |
geological formation that is close
to the surface but is not outcropping |
Traverse |
to move or travel through an
area |
Weathered |
breakdown of rock at the Earth's
surface, due to climatic and biological processes |