Alien Metals Limited (UFO.L) IP Survey Identifies Multiple Targets at Donovan 2

Multiple Copper-Gold Targets identified at Donovan 2

Alien Metals this morning announced results from IP Survey work at its Donovan 2 project in Mexico, which is prospective for copper-gold mineralisation and VMS style deposits. The survey identified two very interesting targets which are likely to form the core focus of a future drill program.
Comment & Recommendation

Alien continues to provide positive news-flow from its Mexican projects, especially Donovan 2 that is located in a target rich area, being just 15 miles from Teck Resources’ San Nicolas VMS deposit, with an Indicated Resource of 108.9mt, at an average grade of 1.16% copper and 0.43 g/t gold.

We are encouraged by the continuation of discussions with a “range of parties regarding potential joint venture opportunities on the project” which was mentioned at the foot of the RNS. An announcement of any such deal could be a major catalyst for the shares and help accelerate the project’s exploration and development.

With projects located in jurisdictions that have to date only been lightly impacted by the Covid-19 epidemic, Alien is much better placed than many other resource development companies (Mortality rate in Mexico and Australia 3 and 2 per million population respectively, compared to 167 per million in UK – Source Worldometer-Dadax).

Despite the progress being made in Mexico and favourable news in recent weeks from the Group’s iron-ore and silver prospective projects in the Pilbara region of Western Australia, the shares remain in our opinion oversold, with a market cap of around £2m. To this end, @FirstEquityLtd continue to rate the shares as a ‘Buy’.

Highlights:

– Excellent targets generated from IP survey coincident to previous geophysical and sampling results

– Two robust targets associated with previously outlined geological corridors identified

– Survey has defined 2 robust drill targets

o North zone prospect known as Cerro de la Cruz where ground magnetics, gravity and IP geophysics all returned coincident anomalies

o Central prospect known as Los Alomos where historical anomalous rock samples and the ground IP geophysics returned coincident anomalies.

– A drill program incorporating survey results is currently being processed

– Project is situated in a major mining province and lies within 24km of Teck Resources Limited San Nicolás VMS deposit hosting a Measured and Indicated Resource of 108.9Mt, with average grades of 1.16% Cu and 0.43g/t Au.

Bill Brodie Good, Technical Director, commented:

“The highly successful IP survey carried out by highly experienced geophysical consultants has highlighted 2 robust and one slightly weaker magnetic anomaly, coincident with previous geophysical and rock chip sampling to date. The incorporation of promising results from IP, Gravity and Magnetic surveys has defined these anomalies.

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UFO 1 - Alien Metals Limited (UFO.L) IP Survey Identifies Multiple Targets at Donovan 2UFO 1 - Alien Metals Limited (UFO.L) IP Survey Identifies Multiple Targets at Donovan 2
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