Bill Brodie Good, Technical Director of Alien Metals (UFO.L) Interview

We spoke with Bill Brodie Good, Technical Director of Alien Metals about the recent company updates, Mexico and would he consider a JV partner?.

With the Proposed Acquisition of highly-prospective license application surrounding Elizabeth Hill Silver Project and Munni Munni PGE deposit and KMG Shareholders approve the sale of High-Grade Elizabeth Hill Silver Project to Alien, the future is looking bright for this small-cap company.
 

 
Strategy

Alien Metals’ 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.

The Group has operated in Mexico for over ten years, during which time it has established long-term relationships with local government, communities, and key stakeholders. The Company has retained consultants who have significant exploration and mining experience and have worked with the company for many years. Alien also has excellent contacts in Australia who are able to provide technical support for the current projects going forward.

Alien Metals’ 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 jurisdictions other than Mexico: during 2020, this included West Africa, Europe and Australia. Other than the Elizabeth Hill Silver Project, none of these evaluations has led to the Company making an acquisition as they have not reached the Company’s criteria.

Where preliminary studies evidence sufficient mineralisation, increasingly comprehensive studies will be undertaken with a view to delineating a compliant mineral resource estimate in readiness of 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.

Overview of operations

During 2020, the Group completed its initial high level exploration programme over its portfolio of mining concessions covering an area of over approximately 1,500 hectares, to develop and direct future exploration work.

As at 30 June 2020, the Company held 12 fully owned mining concessions in Mexico, a 51% interest in the Hamersley Iron ore projects in Australia and is in the process of acquiring 100% of Elizabeth Hill Silver project in Australia. An initial LOI to acquire the Andromeda tenement adjacent to San Celso Project in Mexico is also in place.

Copper / gold project

Donovan 2 project

The Company’s 750-hectare Donovan 2 flagship project is located to the southeast of Zacatecas city and in close proximity to Alien’s portfolio of other wholly owned projects along 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 Metals’ 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.

A maiden drilling programme is being finalised to fully test the main targets.

Silver projects

Elizabeth Hill (Option to acquire 100%)

The Elizabeth Hill project is situated approximately 45 km south of Karratha in the 61,000 km2 Achaean Pilbara Block of the Pilbara Craton. The Project is well located, lying 40 km from the deep-water port at Dampier and 8 km from rail infrastructure.

The Elizabeth Hill Silver Project was mined between 1998 and 2000 via underground mining, primarily between the 62 m and 102 m 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.

Los Campos 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 bounds the Endeavour Silver El Compas gold mine. The property encompasses at least two known veins: the Los Campos vein and the San Rafael vein and is easily accessible by a short drive from the centre of the City of Zacatecas.

The Los Campos vein systems have been developed along a strike distance of over 3km and to depths exceeding 100m. Historic geological mapping and sampling has identified the potential for additional veins running either parallel or nearly parallel to the Los Campos vein.

San Celso project

The 88-hectare San Celso project is located in the historic mining district of Pánfilo Natera-Ojocaliente and is surrounded by other concessions to the south and west. It encompasses two veins: the San Celso and Las Cristinitas veins. Recent exploration carried out during 2019 and 2020 confirmed the high-grade potential of this project, with recently reviewed historic underground sampling in the San Celso mine included a 4.65m interval at >1,000 g/t Ag including 1.05m at 2,683 g/t Ag, 78.2 oz/t Ag.

As part of an ongoing portfolio review, Alien is in the process of relinquishing the other historically held tenements in Mexico. Following a detailed review of these tenements, the Company felt they are low priority and do not warrant further expenditure. The tenements dropped will be Donovan 1, Africana and Navidad.

Iron Ore Projects

Hancock Ranges Project – 51%

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.

The License has been subject to historical exploration by Rio Tinto plc, BHP Group plc, and more recently Volta Mining Limited, where drilling intercepted mineralisation within the Brockman Iron Formation including 126m @ 60.28% Fe from surface (Hole 14SERC004).

Brockman Iron Project – 51%

This 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.

This tenement is dominated by the Brockman Iron Formation which underlies the majority of the tenement area. Recent alluvial cover is prevalent and covers the indicated Brockman Iron Formation.

BHP, as part of their much larger regional programme, identified these two ‘deposits’ from a combination of mapping and surface rock chip sampling. This sampling was undertaken by BHP at both the 19 and 20 prospects and the samples were analysed for a standard suit of iron ore related elements. The average iron content of four rock-chip samples from prospect 19 was 62% Fe and the average for five samples from prospect 20 was 63.3% Fe.

Future outlook

The Company is looking towards 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 also finding partners for existing projects to support future work and development.

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