TIDMUFO
RNS Number : 1424F
Alien Metals Limited
14 July 2021
Trading Symbols
AIM: UFO
FWB: I3A1
14th July 2021
Alien Metals Ltd
("Alien" or "the Company")
Exploration planning for Donovan 2 Copper-Gold project,
Mexico
Follow the link to view the announcement in full including all
figures:
http://www.rns-pdf.londonstockexchange.com/rns/1424F_1-2021-7-13.pdf
Alien Metals Ltd (LSE AIM:UFO), a minerals exploration and
development company, is pleased to provide an update on the review
and planning for the next phase of exploration on the Company's
Donovan 2 Copper-Gold project in Mexico.
Bill Brodie Good, CEO & Technical Director of Alien Metals,
commented:
"In our view, Donovan 2 is still a highly underexplored asset
and one that, we believe, offers a great deal of exploration
potential. Following the recent termination of the earn-in
agreement with Capstone Mining we have been hard at work reviewing
the exploration they undertook, as well as reviewing all of our own
historic exploration work. We are now finalising the next stage
exploration programs for the project.
"We believe that some of the geophysical targets at Donovan 2,
along with the geological target at Los Alamos, have not been
adequately tested. Along with reinterpretation of the geophysical
data and surface geochemical work, we want to ensure we have
optimised target generation to follow up with our systematic maiden
drilling program. We are undertaking a review and validation of
Capstone's drilling, which could provide more information to use in
target generation. The recent new samples taken by Alien from the
old water well at Los Alamos further reinforces our belief in this
project and its potential."
Figure 1: Location of Donovan 2 Copper-Gold project, Zacatecas
Region, Mexico in relation to TECK San Nicolas VMS Copper deposit,
July 2021
Capstone Mining Inc ("Capstone") has provided Alien with all of
the technical data generated during their drilling program, as well
as a final report outlining their findings. The Company has now
reviewed all of this data (the geophysics of which were announced
by Alien on 10 June 2021), other than the drill core, and is in the
process of moving the drill core from the Capstone facility in
Zacatecas to a newly rented warehouse facility close to Donovan 2
and the San Celso permits at Rancho Nuevo. This facility will give
Alien a secure and dry storage facility, as well as an area to
process future drill core from all of its current projects. The
Company is pleased to be able to support the local community in
this development.
Figure 2: Location of Capstone drill holes and drill direction
over Chargeability anomalies at 100m depth, Donovan 2, July
2021.
The original high-priority targets identified by Alien prior to
Capstone's involvement remain untested. Figure 3 below summarises
the work completed up to mid-2020 by Alien and the priority target
areas and data remains unchanged. The more detailed IP survey at
the end of 2020 mostly highlighted the detail of these known
targets.
The exploration signatures of the San Nicolas deposit (Teck
Mining) are within the typical radius of repeat VMS orebody
locations and further research indicates that some Mobile Metal
Iron (MMI) surface geochemical sampling over the eastern area is
warranted. Therefore, a plan for about 55 samples on a north-south
grid has been finalised and work has started. The San Nicolas
deposit is associated with geophysical properties, which is a
combination of high chargeability and low resistivity, which is
where the MMI program is planned to be focused as per Figure 4
below.
Figure 3: Combined Ground magnetic, Gravity and IP anomalies
(red/purple) with historic surface float sample copper grades,
Donovan 2, April 2020
Figure 4: MMI plan over Geophysical target, Donovan 2, July
2021
The MMI technique is an exceptional surface geochemical method
for detecting potential mineralisation in a 'blind' environment
such as Donovan 2 where there is no surface expression of the
underlying rocks, and the Company understands this technique was
used very successfully at the San Nicolas project in its early
stages of development in conjunction with an area of high
chargeability and low resistivity geophysical signature. Alien are
therefore using the same information for this targeting program of
the MMI at Donovan 2.
2 of the 4 samples taken in early June 2021 from inside the
water well at the Los Alamos target area returned greater than 1%
Copper, adding further confirmation that there is significant
mineralisation present within its extension, with the source of
mineralisation still to be found. Figure 5 below shows a fresh
sample of mineralised breccia taken from the Los Alamos water well
target by the Company. This is from the location of the historic
sample that returned 3.3% copper (as announced on 29 April 2019 and
27 June 2019) and is part of the current review and planning
process.
Figure 5: Malachite and sulphide bearing quartz from Los Alamos
Prospect, Donovan 2, June 2021
Alien is reviewing the value of getting the combined geophysical
data generated at Donovan 2 to date by all parties reprocessed and
reinterpreted by an independent group specialising in geophysical
interpretation who have experience of Mexican geology and
geophysical responses as well. A comparison of geophysical work is
already comparing the San Nicolas project to Donovan 2 with
possible synergies being used as targeting tools for these phases
of work such as the MMI program initial target area.
Following the results of Capstone's drilling program, Alien's
original drilling plan remains largely unchanged. This is due to
the Capstone drilling consisting of single holes in different
locations that targeted very specific geophysical targets while
Alien had planned and still do plan to carry out a more systematic
'heel to toe' style of drilling across geophysical and geological
targets, to ensure each target area is properly covered by drilling
with no gaps (see Figure 6 below). The Company is finalising an
initial 4-to-6 hole program for about 800m to target the Los Alamos
and Cerro de la Cruz targets once a review of the current drilling
permit status is completed, the MMI results are received and
reprocessing of the geophysics are completed to ensure the Company
has used every available piece of data to maximise confidence in
the drilling program.
Figure 6: Alien proposed maiden drill plan, June 2020, Donovan
2
Capstone will arrange for a revocation of the transfer agreement
and Alien will revert to being the Project operator, retaining a
100% interest in the Donovan 2 Copper-Gold project.
- Ends -
For further information please visit the Company's website at
www.alienmetals.uk, or contact:
Alien Metals Limited
Bill Brodie Good, CEO & Technical Director
(via St-James' Corporate Services, Company Secretary)
Tel: +44 20 7796 8644
Beaumont Cornish Limited (Nomad)
James Biddle / Roland Cornish
www.beaumontcornish.com
Tel: +44 (0) 207 628 3396
Turner Pope Investments (TPI) Limited (Broker)
Andrew Thacker / James Pope
Tel: +44 (0) 20 3657 0050
Yellow Jersey PR (Financial PR)
Sarah Hollins / Joe Burgess / Matthew McHale
alienmetals@yellowjerseypr.com
Tel: +44 (0) 20 3004 9512
Notes to Editors
Alien Metals Ltd is a mining exploration and development company
listed on AIM of the London Stock Exchange (LSE: UFO). The
Company's focus is on precious and base metal commodities, with its
operations located in proven mining jurisdictions and it has
embarked upon an acquisition-led strategy headed by a high-quality
geological team to build a strong portfolio of diversified
assets.
In 2019, the company acquired 51% of the Brockman and Hancock
Ranges high-grade (Direct Shipping Ore) iron ore projects and
increased its holding to 90% in May 2021 while in 2020 acquired
100% of the Elizabeth Hill Silver Project, which consists of the
Elizabeth Hill Historic Silver Mine Mining Lease and the
surrounding Munni Munni North Exploration Tenement. The Australian
projects are located in the world-renowned Pilbara region of
Western Australia.
The Company also holds two silver projects, San Celso and Los
Santos, located in Zacatecas State, Mexico's largest silver
producing state, which produced over 190m oz of silver in 2018
alone, accounting for 45% of the total silver production of Mexico
for that year. The Company holds a Copper Gold project in the same
region, Donovan 2.
The company was also awarded an Exploration Licence in Greenland
in late 2020, which surrounds the world class Citronen Zinc-Lead
deposit.
In addition to progressing and developing its portfolio of
assets and following its strategic review of its portfolio of
silver and precious metals projects, Alien Metals has identified
priority exploration targets within all its projects which it is
working to advance systematically.
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