Alien Metals Limited (AIM:UFO) Direct Shipping Ore grades confirmed at Hancock

Direct Shipping Ore grades confirmed by bulk sample results from Hancock

Follow the link to view the announcement in full, including all figures:

http://www.rns-pdf.londonstockexchange.com/rns/1287P_1-2022-6-16.pdf

Alien Metals Ltd (LSE AIM:UFO), a global minerals exploration and development company, is pleased to update the market on the progress of the company to get the Hancock Iron Ore Project into production in 2023.

Highlights:

· Metallurgical test work completed that produced an initial low cost flow sheet of simple crushing and screening for this material

· Metallurgical test work confirming Direct Shipping Ore Grade product

· High Grade Direct Shipping Ore Pilbara Fines product confirmed at a grade 62.7% Fe from the initial bulk sample from Ridge C Resource

· Very low impurities consistent with excellent quality product including silica content (SiO2) < 4.1%, Aluminium content (Al2O3) < 2.77% and Phosphorus content (P) < 0.1%

· Test work also indicated a potential for a Lump yield which can command a premium price over the fines above 62% Fe.

· Marketing samples prepared and being dispatched to potential customers

Bill Brodie Good, CEO & Technical Director of Alien Metals, commented: “These results from the initial bulk sample on Ridge C are another significant positive step in the progress of the Hancock project further confirming the excellent quality of the product as well as providing a simple initial process flow sheet showing only simple crushing and screening is required prior to shipping, a key element in keeping Capex and Opex to a minimum thus minimising environmental and energy usages once in production.

Returning higher than 62% Fe with associated low grade deleterious materials from a 2.5 ton bulk sample provides even more confidence in the overall quality and grade of the resource at C and only spurs us on to maintain the development of the project.

With the DSO Grade Iron Ore price moving back up, the quality of this product continuing to be proven and the remaining large potential for more discoveries on the tenement we are looking forward to the future of this project.”

With the maiden JORC compliant inferred Mineral Resource of 10.4Mt @ 60.4% Fe (Announcement: 22 September 2021) and as recently announced with significant potential to find more DSO grade material on the tenement (Announcement: 30 March 2022) the bulk sampling work compliments the drilling and resource add more confidence of the grade and quality of the Iron Ore from more representative samples that closely represent the product in a mining scenario. The results also enable more detailed planning for actual mining work to add to the mine planning as well as to the confidence in the resource.

The success of this test work carried out to date confirms the quality of the iron ore produced from the Hancock Ridge C JORC Resource area. The test work further confirms the Company’s strategy to produce high grade DSO products from the Hancock Ridges and to continue the development work to be shovel ready in early 2023.

Further bulk samples are being taken currently including a second sample site on ridge C and 2 sites on ridge E to get representative samples of both resources and enable the Company to continue on its development path for more detailed mine planning work.

Customer samples have been prepared from this bulk sample and are being sent to interested parties in current discussion with the Company on possible offtake agreements for their own internal testing but from the laboratory results alone the Company continues to be highly motivated in this project.

These continued positive results all add to the Company’s focus to continue to push ahead with the development of this project to get into production early next year. With the recent rise again to around $US145/t Iron Ore 62% Fines spot price on better demand prospects in the metals market due to easing coronavirus-induced restrictions and pledges for more stimulus in top consumer China in and with the low Capex and low Opex of the project the Company is highly motivated to bring this project to fruition soonest.

IOCA is in advanced discussion with a number of potential offtake partners and interested 3rd party contractors who all see this project as low risk high return to support the development and guaranteed purchase of the product from the start of mining to further de-risk the project.

A total of 2,563 kg of bulk sample was dispatched to Perth from the Ridge C JORC Resource test pitting area, which was composed of a 4m long by 2m wide trench with a maximum depth of 3m. The test work was conducted by ALS Metallurgy Laboratory in Perth on the 5 sampled domains that composed the total sample. Both dry and wet size by analysis was undertaken on each domain as well as Drop Test work and grade analysis work.

A representative portion from each sample was sent to ALS Geochemistry in Malaga, Perth, for

24-element XRF analysis and Loss on Ignition (LOI) at 1000°C. All of the 5 samples returned over 60% Fe with sample AMHC BS007 returning 63.7% Fe and 3 of the remaining 4 samples returning over 62% Fe and as significantly all with low associated deleterious elements.

ALS laboratory has prepared from this composite bulk sample several homogenous marketing samples which are now being shipped to potential customers and offtake parties for their own in-house due diligence testing.

Based on the test results of each sample, one composite namely Alien Metals Comp was

formed by combining samples AMHC BS006, AMHC BS007, HANCOCK SP5 and AMHC BS003. The composite calculated head assay returned 62.7% Fe with the continued low levels of deleterious elements as per Table 2 below with the majority of product being fines. The dry and wet screening work is an aid in defining an optimum crush and screen size when mining commences to produce the optimum quality of product. The Drop Tower testwork is designed to define the expected percentage of fine product vs Lump product again to aid in mine and process planning. All results to date are highly positive to enable simple and cost effective mining operation. Details of the work done are below.

Figure 1: Location of Hancock Iron Ore Project, Western Australia

Table 1: Head Assay Results, Bulk Sample, Hancock Iron Ore Project, June 2022

Table 2: Head Grade Assay Results Bulk Sample Composite, Hancock Iron Ore Project, June 2022

Table 3: Summary Composite Head Assay Analysis Results, ALS, Bulk Sample, Ridge C, Hancock Iron Ore Project, May 2022

Table 4: Drop Tower Testwork results for Fines (ADF) and Lump (ADL) portions, Bulk Sample, Hancock Iron Ore Project, June 2022

Figure 2: Bulk sample residues, Ridge C, Hancock Iron Ore Project, June 2022

The Company looks forward to updating the market as more news becomes available.

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

Alien Metals Limited

Bill Brodie Good, CEO & Technical Director

Tel: +44 (0) 203 811 2144


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