Alien Metals Limited (AIM:UFO) High Grade Direct Ship Ore at Sirius Extension

High-Grade Direct Ship Ore confirmed at Sirius Extension, results to support targeted upgrades of Resource classification and conversion of Resources to Reserves

Alien Metals Ltd (LSE AIM: UFO), a global minerals exploration and development company, is pleased to announce through its wholly-owned subsidiary Iron Ore Company of Australia Pty Ltd (“IOCA”) the first batch of assay results from its recent resource definition drilling programme (see RNS 2 May 2023) at the Company’s 90% owned Hancock Iron Ore Project (“Hancock Project”), Pilbara Region, Western Australia.

Highlights

·   13 diamond core holes drilled during April 2023 for a total of 1049 metres (“m”) at the Company’s Sirius Extension Deposit. This infill campaign increased the total density of the drilling activities to date at the Sirus Extension Deposit allowing the Company to target Resource upgrades from Inferred to Indicated which should then support future Reserve reclassifications

·   The initial batch of assay results for the first two (23IHD003 and 23IHD006) holes have been received, with highlights that include:

o from Drill Hole 23IHD003

§ 26.9m @ 60.03% iron (“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

o from Drill Hole 23IHD006

§ 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

·   Consistent grades of over 60% Fe with low levels of deleterious elements that meets, and in some places exceeds, the Company’s current resource model

·   The high grade, direct ship ore results further reinforces the Company’s confidence in the Hancock Project

·   This phase of in-fill drilling will be included in future Mineral Resource Estimates and Mining studies which the Company expects will result in increased Mining Reserves.

Troy Whittaker, Chief Executive Officer commented:

“These initial results from the recent Sirius Extension drilling campaign reinforce the potential of the Hancock Project. These results mirror or exceed that of the Company’s resource model and we look forward to announcing the balance of the results that will support the next phase in the development of this Project in the coming weeks.”

Further Information

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

The diamond core drilling completed in late April 2023 comprised of 13 holes for a total of 1,049m at the Company’s Sirius Extension Deposit. This campaign (see figure 2) focused on infill resource definition drilling within the existing Mining Inventory pit design (see RNS 2 May 2023) to target a higher level of confidence in the Mineral Resource Estimate to be completed as part of the Company’s Definitive Feasibility Study.

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

Figure 3: Sirius Extension plan view

The assay results received for these first two holes reflect the overall widths and grades observed in the current Mineral Resource Estimate.

Figure 4 below shows the Iron intercept of 26.9m @ 60.03% Fe from 13.9m overlaid and reinforcing the current Mineral Resource Estimate grades in this location. The Company anticipates that correlation of this resource definition drilling supports a positive outlook for increases in its Ore Reserves due to the increased drilling density that should support Resource upgrades from inferred to indicated.

Figure 4: Drilling cross section of drill hole 23IHD003 overlaid with existing Mineral Resource Estimate

The Company is pleased to report, that there appears to be a number of upside intersections returned in the results.

1.    16.1m @ 59.75% Fe including 9.9m @ 61.03% Fe. This area is superior to that of the existing blocks and nearby blocks with respect to the Mineral Resource Estimate grades within the resource model, and

2.    7.8m @ 62.63% Fe from 74.1m. This further suggests potential for a higher grade portion in the footwall ore position of the resource model.

The Company is confident this recently completed core program will lead to a conversion of the Resource from the Inferred to Indicated classification and have a positive impact on Mining Inventory and Ore reserves in due course.

Table 1 – Summary of significant high grade iron ore drillhole interceptions, Sirius Deposit (*max 3m internal dilution, cut off >=59% Fe)

* Drilling depths are from surface

Table 2 – Hole ID’s (Only holes with assays results received are reported)

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, Al, Ca, K, Mg, Mn, Na, P, S and 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 (see RNS 26 April 2023)

Table 3 – Hancock Project Ore Reserves

Table 4 – Hancock Mining Inventory

Table 5 – Mineral Resource

Competent Persons 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 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 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 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.