Alien Metals Ltd (AIM: UFO), a global minerals exploration and development company, is pleased to announce its financial results for the six months ended 30 June 2022. The full interim results, with accompanying Notes, are available on the Company’s website www.alienmetals.uk.
Roderick McIllree, Executive Chairman of Alien, commented: “After being appointed Executive Chairman in September of this year, I am pleased to share with shareholders the interim results for the first six months of 2022. This half year has seen significant progress across a number of projects with several exciting developments within our portfolio of precious and base metal commodities. The acquisition of the Munni Munni Platinum Group Metal Project and 100% of the Vivash Gorge Iron Ore Project have been notable highlights in the Company’s strategy to continue to expand and diversify its assets.
“At our Hancock Iron Ore Project, the Company received highly positive results confirming High-Grade Direct Shipping Ore (DSO) at a grade of 62.7%, with production being targeted for 2023. Given the increasing global demand for sources of green steel, sources of high-grade iron ore with lower energy requirements to get them to market will be of great value. Samples of the product have been sent to potential offtake partners, with Alien’s subsidiary (The Iron Ore Company of Australia) entering into advanced discussions with a number of parties attracted by the low-risk nature of this project.
“The 100% acquisition of the Vivash Gorge Project announced in June 2022 further solidifies our interest in Western Australia, widely considered as one of the best regions for mining globally. The Elizabeth Hill Project, historically one of Australia’s highest-grade silver mines, continues to hold promise, with extremely high-grade assays for silver, as well as base meals, being returned.
“At our Mexico projects, operations were advanced at both the San Celso and Donovan 2 projects. Although post-period end the Company announced that operations would not continue at San Celso, drilling at Donovan 2 did identify a 34m anomalous zinc in hole DONDD-A04; and Alien will continue to advance this project, as enough indicators are present to suggest a potentially larger zone of mineralisation. Although this remains early in the development process, we will continue to review the next phase of activity with great optimism that this will be a successful project for the Company.
“We have been extremely encouraged with Alien’s progress across our various projects during this half-year. The Company aims to continue to increase our portfolio of diverse commodities across a range of geographies and looks forward to updating shareholders in due course.”
Bill Brodie Good, CEO & Technical Director commented: “We are pleased to have found DSO Grade product of iron ore at our Hancock Project. An initial bulk sample from the Ridge C Resource confirmed a Pilbara Fines product at a grade 62.7% Fe, with very low impurities, less than 4.1% silica content, 2,77% Aluminium content and 0.1% Phosphorus content respectively. This is a significant discovery for the overall project economics, with this purer grade of iron ore greatly aiding to keep the Capex and Opex of the project low. Furthermore, test work indicated a potential for a Lump yield which could command a premium price over the fines above 62% Fe. The initial Inferred JORC compliant resource remains at 10.4Mt @ 60.4% Fe with a further highly anomalous 3km of new ridge targets still to be drill tested, underpinning the potential of this project. We are continuing to progress towards production commencing in 2023.
“At Elizabeth Hill, a 1,991m diamond and Reverse Drilling programme has confirmed that further high-grade silver and base metals mineralisation have been intersected. Silver assays have been particularly impressive, with highlights including 9.7m @ 8,326 g/t Ag (267oz/t Ag) from 15m in drillhole 21EHDD003, 24.8m @ 829 g/t Ag (27oz/t Ag) from 2m including 11.7m @ 1,735 g/t Ag (56oz/t Ag) and 1.7m @ 19,865g/t Ag (639oz/t Ag) from 23m, in drillhole 21EHDD001 and 8m @4233 g/t Ag from 66m in drill hole AMEHRC009. Furthermore, the 2m @ 1,550 g/t Ag from 108m in drill hole AMEHRC012 could indicate a possible repetition of the Elizabeth Hill silver orebody. Elizabeth Hill’s value is further underpinned by its commodity diversity, also showing assays of copper, nickel, iron, and zinc. We are currently working with our technical consultants to gain a better understanding of this target ahead of a follow-up exploration programme.
“Although the Company were disappointed with not being able to secure access to advance the San Celso Project, in Mexico, the results from a drilling program conducted earlier this year returned some low level anomalous intersections at Donovan 2 that the Company are keen to follow up on. We remain optimistic for a larger zone of mineralisation to be discovered.
“Having also raised gross proceeds of approximately £1.5 million in early September the Company is in a strong position to push ahead with additional critical exploration work in the coming months to continue to add value to all projects.”
Strategy
Alien’s objective is to continue to be a project generator with a multi-commodity portfolio focussed on key commodities related to the global demands for green commodities with projects in jurisdictions with established mining communities, stable political backgrounds, and where strong operational controls can be assured.
The Company has retained consultants who have significant exploration and mining experience and have worked with the company for many years. Alien has built an excellent technical team in Australia and using specialist consultants has access to a wide and engaged technical team to develop the Iron Ore assets via the wholly owned subsidiary Iron Ore Company of Australia (IOCA) and the diverse and highly prized Munni Munni project.
Alien’s objective is to create a multi-commodity portfolio of mining projects in jurisdictions with established mining communities, stable political backgrounds, and where strong operational controls can be assured.
Aliens’ geological experts assess and identify projects for the potential to host significant economic mineralised systems. Wherever possible, the projects are acquired on a low-cost option basis whilst preliminary exploration is undertaken to assess the merits of further work.
The Company routinely evaluates mining projects in a wide array of world-class mining jurisdictions including Mexico, Australia, and Europe. Our evaluations have confirmed that the Munni Munni and Vivash Gorge projects have met our criteria leading to their subsequent acquisitions.
Where preliminary studies evidence sufficient mineralisation, increasingly comprehensive studies will be undertaken with a view to delineating a compliant mineral resource estimate in readiness for the potential sale of the asset to a producing mining company, at which time a significant premium over its acquisition and development cost may be justified.
Financial highlights
As at 30 June 2022, the Company had total assets of US$16.9 million (2021: US$8.7 million), of which US$3.0 million (2021: US$3.7 million) was cash. The Company had total liabilities of US$0.9 million (2021: US$0.2 million), of which US$0.9 million were current liabilities (2021: US$0.2 million).
In the six months ended 30 June 2022 the Company made an operating loss of US$1.4 million (2021: US$0.8 million) and a loss per share of US$0.031 (2021: US$0.024).
Overview of operations
During 2022, the Company has undertaken multiple exploration programs across Australia and Mexico, including: metallurgical test work, bulk sampling, trenching and RC drilling.
As of 30 June 2022, the Company holds a 51% interest (with the option to become 90% following a post-period end Option Agreement announced on the 24 August 2022) in the Hamersley Iron Ore Projects in Australia, a 100% interest in the high-grade Elizabeth Hill Silver project in Australia, both the recently acquired Munni Munni PGM deposit and the Vivash Gorge Iron Ore project in Australia, and 8 fully owned mining concessions in Mexico. Alien also holds an exploration licence around the Citroen Greenland zinc project.
Iron Ore Projects
Hancock and Brockman Projects – (51%, with an option to acquire 90%)
The Hancock Ranges Iron Ore Project. E47/3954, is within 20kms of the Newman township and borders licences held by Fortescue Metals Group, Hancock Prospecting, BHP Billiton (Mount Whaleback), Hope Downs and Brockman Mining, and is the first of two licences that make up the Hamersley Iron Ore Project (the “Hamersley Project”).
The second of the Hamersley Project licences is the Brockman Tenement (E47/3953) and is 95km’s northwest of the Tom Price township and borders licences held by Fortescue Metals Group and Rio Tinto. The Brockman tenement hosts part of the historic BHP Deposit 20 iron ore target and the historic BHP Deposit 19 Fe target sits on the south-eastern boundary.
At Hancock in June 2022, Direct Shipping Ore Grades were confirmed at a grade of 62.7% Fe from the initial bulk sample from Ridge C Resource. Test work also indicated a potential for a Lump yield, with the potential to command a premium price. Through the wholly owned subsidiary, The Iron Ore Company of Australia, there are advanced discussions for an offtake agreement.
At Brockman further to the successful Heritage Survey and Ethnological Surveys in late 2021 the Company was granted for the necessary drilling permits. A maiden drilling programme at Brockman is planned.
Vivash Gorge
In June 2022, Alien announced the 100% acquisition of the Vivash Gorge Iron Ore Project, Western Australia from Zenith Minerals. The Vivash Gorge project E47/3071 is located approximately 80km west of the Tom Price Township in the southern section of the Brockman Syncline. Fortescue Mining Group (FMG) has defined a High-Grade Iron Ore Mineral Resource of 28Mt @ 58.8% Fe (1) over neighbouring ground (the “Vivash SW Resource”), which abuts the eastern central boundary of the Vivash Gorge tenement with the closest hole returning 70m @ 60.5% Fe from surface (hole VV0111) (1) and no work has to date been done within the Vivash Gorge tenement to test the extension potential of this ore body into the tenement. The Company will be providing updates on the progress at the site in the future.
1.Source : Mineralisation Report 29 September 2020 In support of application for mining lease, section 49 conversion of prospecting licence 47/1672 by FMG Pilbara Pty Ltd within the Vivash South Iron Ore Project, Pilbara)
PGE, Silver, Base Metals
Elizabeth Hill (100%)
The Elizabeth Hill project is situated approximately 45km south of Karratha in the 61,000km2 Achaean Pilbara Block of the Pilbara Craton. The Project is well located, lying 40km from the deep-water port at Dampier and 8km from rail infrastructure.
The Elizabeth Hill Silver Project was mined between 1998 and 2000 via underground mining, primarily between the 62m and 102m levels. Silver production totalled approximately 16,800 tonnes of ore grading 2,195 g/t Ag (70.24 oz/t Ag) generating 1,170,000 ounces Ag, including some very large specimens of native silver.
In January 2022, the Group announced initial results from the drilling programme undertaken in Q4 2021. Highlights included spectacular grades, such as: 9m @ 8,326g/t silver from 15m, and 24.8m @ 829g/t silver from 2m.
Munni Munni PGE Project (100%)
On 22 March 2022, the Group announced that it had completed the acquisition of 100% of the Munni Munni PGE Project, which is strategically located 5km south of the Elizabeth Hill Silver project. Munni Munni hosts the largest ultramafic intrusion in the West Pilbara and is one of the biggest undeveloped primary Platinum Group Elements (‘PGE’) Resources in Australia. The historic non-compliant JORC 2004 Resource estimate* implied 24Mt @ 2.9g/t Platinum Group Element (PGE) and gold for 2.2Moz PGE, with around 95% of this resource estimate in the Measured and Indicated categories. The historic resource hosts 1.14Moz palladium, 0.83Moz platinum, 152Koz gold and 76Koz rhodium.
ELA 47/4422 is a 117km2 tenement which wraps around the Elizabeth Hill Silver Mining Lease and includes a portion of the Munni Munni intrusive complex to the south and southwest. The highly prospective Munni Munni fault strikes north-south through the tenement and into the Elizabeth Hill Mining Lease. There are also some strike length of the Hunters Reef, a Platinum Group Element target geological feature related to the Munni Munni Deposit defined in the south of this ELA.
*Resource published under 2004 JORC code and accordingly is not reported under a Standard under the AIM Rules. The historic resource figures are derived from the announcement[s] on the ASX published by Helix Resources on 3rd April 2003
Los Campos Silver Project
The Los Campos project comprises four concessions covering an area of approximately 500 hectares and is located on the south side of the city of Zacatecas and only 3km from the Endeavour Silver El Compas silver mine. The property contains at least two known veins: the Los Campos vein and the San Rafael vein, which were both partially mined historically.
The Los Campos vein system has been developed along a strike distance of 3.3km and to depths exceeding 100m. Geological mapping and sampling discovered additional veins running either parallel or nearly parallel to the Los Campos vein.
San Celso Silver Project
The 88-hectare San Celso project is located in the historic mining district of Pánfilo Natera-Ojocaliente. It contains two highly mineralised veins: the San Celso and Las Cristinitas veins which were also partially mined historically. Work carried out during 2019 and 2020 confirmed the high-grade of these veins. Alien has currently been denied access to progress this project.
Donovan 2 Copper Project
The Company’s 750-hectare Donovan 2 project is located to the southeast of Zacatecas city and in close proximity to other wholly owned projects within Alien’s portfolio within the Mexican precious and base metals belt. The Teck Resources San Nicolás copper zinc deposit and Minera Frisco El Coronel gold mine are both located within 25km.
Alien’s preliminary exploration programme on this project, has identified several areas that exhibit pathfinder indicators of volcanogenic massive sulphide (VMS)-style mineralisation, and ground magnetic geophysics and induced polarisation have confirmed indications of sub-surface VMS-style mineralisation.
In May 2022 an initial drilling program at Donovan 2 intersected weak but encouraging mineralised zones in hole DONDD-A04 which identified zone of alteration, which is considered highly promising and the Company is reviewing further work to follow up this intersection.
Greenland Zinc Project
Alien was successfully granted a 208km2 exploration licence in northern Greenland, surrounding the world-class Citronen zinc-lead project owned by Ironbark Zinc Limited in mid-October 2020 running until December 2023. It is considered one of the world’s largest undeveloped zine projects, with an estimated 13bn pounds of contained zinc and lead metal.
The Company is currently in the process of understanding the tenement further to aid maiden exploration.
Future outlook
The Company is looking forward to further advancing its existing portfolio of prospective silver and copper/gold projects in Mexico and silver and iron ore projects in Australia, as well as seeking joint venture opportunities. Reviews are ongoing for adding projects to the Company portfolio and finding partners for existing projects to support future work and development.
Notice of no auditor review of interim financial information
The interim unaudited consolidated financial information for the six-month period ended 30 June 2022 has been prepared by and is the responsibility of the Company’s management.
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:
Rod McIllree, Executive Chairman
Email: [email protected]
Bill Brodie Good, CEO
Tel: +44 20 3811 2144
