REG - Alien Metals Limited - Independent Review at Pinderi Hills

Alien MetalsAnnouncement

30/05/2024 10:45

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RNS Number : 4722Q  Alien Metals Limited  30 May 2024

Trading Symbols

AIM: UFO FWB: I3A1

 

30 May 2024

 

Alien Metals Ltd

("Alien" or "the Company")

 

Independent review of Silver & Ni-PGM's at Pinderi Hills, Australia

 

Exploration is set to commence with an experienced technical team engaged

 

Alien Metals (AIM: UFO) is pleased to provide an update, further to an
independent review undertaken by Resource Potentials Pty Ltd ("Resource
Potentials"), covering recent activities and exploration works planned for
later this year at its 100% owned Pinderi Hills silver and precious metals
project ("Pinderi Hills" or "Project") in Western Australia and the Hancock
Iron Ore Project.

Overview

The Pinderi Hills Project is located in the world-class mining province of the
West Pilbara, covering an area of 180 square kilometres. The Project contains
a unique combination of platinum group metals ("PGM") and gold ("Au")
associated with the Munni Munni Intrusive Complex, the nearby historic
Elizabeth Hill silver ("Ag") mine and multiple nickel-copper ("Ni-Cu") and
lithium ("Li") exploration targets.

The current resource base for the Project, as previously announced, includes:

·          Munni Munni (JORC 2004): 24Mt @ 2.9g/t PGM and gold for
2.2Moz PGM(1)

·          Elizabeth Hill (pre-JORC): 46.8kt @ 2,700g/t Ag for
4.05Moz Ag2 (#_ftn1)

Based on the reverse circulation drilling program completed by the Alien team
in November 2022, the Company is confident that the resources at Pinderi Hills
can be significantly expanded and could potentially host a Tier 1 Precious
Metals and Ni-Cu project. The Australian Government-backed Geoscience
Australia 2016 report highlights the Munni Munni Intrusive Complex as a
high-priority area for a world-class ultramafic hosted Ni-Cu-PGE Sulphide
deposit and amplifies further the Company's planned activities.

The Project is located close to major infrastructure, 50km south of Karratha,
a large mining-centric regional city and airport that provides all the
necessary support for exploration and mining in this highly prospective
region.

Following an independent review of the Project by Geoscientist, Dr. Jayson
Meyers, Principal Consultant and Director of Resource Potentials, Alien
propose to expedite exploration and potentially increase the resource base and
find new deposits. Dr. Jayson Meyers has previously been involved in several
discoveries in Western Australia. The Company is planning exploration
activities to take place in Q3 2024. Alien will commence by undertaking soil
geochemical surveys over the main Ni-Cu target areas and Judy's Reef PGM
trends.

Robert Mosig, Technical Director, commented:

"Further to Resource Potentials' review of Pinderi Hills, including
encouraging silver, base and precious metals drilling results from Elizabeth
Hills (AIM: 20 February 2023), the Company has fast-tracked plans to develop
the Elizabeth Hills Silver Mine, as well as furthering our understanding of
base metals deposits as we explore new opportunities in the area. The region's
recent history has not been explored, so we are delighted, based on the review
and the Company's previous drilling program, to announce our plans for the
next phase of exploration in the region.

"With our recently announced strategic lithium joint venture with Errawarra
Resources (ASX: ERW), Alien can strategically focus on its precious and base
metals targets at Pinderi Hills."

 

The Pinderi Hills - Located in a World Class Geological Province

The Pinderi Hills mineral exploration and mining licenses covering an area of
180km(2) contains highly prospective geology. Geoscience Australia, an
Australian government department, has highlighted this area as having a high
potential for intrusion-hosted Ni-Cu-PGM sulphide deposits in mafic/ultramafic
complexes. In terms of silver, previous drilling by Alien in 2022 identified
exceptional broad intersections of native silver, as set out below.

Figure 1: West Pilbara high potential areas for Ni-Cu-PGM sulphide deposits
with the focus on Munni Munni Complex (Geoscience Australia, 2016)

These large mafic/ultramafic complexes of the West Pilbara are some of the
most fertile rock types for significant discoveries. The Company is moving
ahead with plans for a comprehensive, staged exploration under the guidance of
Non-Executive Director, Mr Robert Mosig, who has over 40 years of experience
in this area and explored Pinderi Hills when he was the managing director of
Helix Resources (ASX: HLX) and Platina Resources (ASX: PGM).

In addition, to assist and expedite the exploration programs at Pinderi Hills,
the Company has engaged geophysical and geological consultancy Resource
Potentials. This well-known consultancy uses leading-edge techniques and
interpretive strategies led by Dr Jayson Meyers, who has run a team of
geoscientists at Resource Potentials for 24 years and served as an Associate
Professor in Exploration Geophysics at the WA School of Mines for 10 years
during that time.

Dr. Meyers has led exploration programs that have discovered and expanded
several different styles of mineral deposits around the world, and his team
has completed a comprehensive study on the mineral potential of Pinderi Hills
and provided a recommended exploration plan.

 

Upcoming work programs

For the remainder of 2024, soil geochemical surveys are planned to commence
over the main Ni-Cu target areas and Judy's Reef PGM trends. Fortunately,
these two mineralisation styles overlap, so when the surveys are completed,
they will be able to test for both styles of mineralisation in one program.
The results from the geochemical sampling will then drive the decision-making
process for the best locations for future geophysical and drilling programs.
Plans are also underway at Elizabeth Hills to target larger silver ore bodies
at depth and along strike from the known silver deposit/mine zone.

Following our recently announced joint venture with Errawarra, we are pleased
that they have already commenced exploration activities. Whilst their focus is
on lithium, utilising the expertise of Alien's partner, the data gathered from
the current fieldwork is expected to provide critical information which will
assist in the analysis and drill targeting for silver, base and precious
metals at Pinderi Hills.

 

Hancock Project - strategic discussions update

 

As announced on 19 April 2024, the Company's Hancock Iron Ore Project in
Western Australia was granted a Mining Lease (M47/1633) by the Western
Australian Department of Mines, representing a key milestone on the pathway
towards development and production.

 

The Company is actively progressing the ongoing review of strategic funding
options with regards to the Hancock Project to maximise value for the
Company's shareholders and stakeholders, including various longer-term
financing options, including continued discussions with iron ore industry
operators regarding offtake funding, joint venture, debt, and equity project
funding.

 

For further information, please visit the Company's website at
www.alienmetals.uk (https://www.alienmetals.uk/) or contact:

 

Strand Hanson (Financial and Nominated Adviser)

James Harris / James Dance / Robert Collins

Tel: +44 (0) 207 409 3494

 

WH Ireland Ltd (Broker)

Harry Ansell / Katy Mitchell

Tel: +44 (0) 207 220 1666

 

Yellow Jersey (Financial PR)

Charles Goodwin / Shivantha Thambirajah / Zara McKinlay

Tel: +44 (0) 203 004 9512

 

Notes to Editors

Alien Metals Ltd is a mining exploration and development company listed on the
AIM market of the London Stock Exchange (AIM: UFO). The Company's focus is on
delivering a profitable direct shipping iron ore operation from it 90% Hancock
iron ore project in the central Pilbara region of Western Australia. The
Hancock tenements currently contain a JORC-compliant resource of 8.4Mt iron
ore @ 60% Fe and offers significant exploration upside which is targeted to
deliver a mining operation of 2Mtpa for 10 years.

These Hancock Project tenements have direct access to the Great Northern
Highway, which provides an essential export route to export facilities at Port
Hedland, from where more than 500Mt of iron ore is exported annually (30% of
global production). The Company also has an interest in two iron ore
exploration projects Brockman and Vivash, located in the West Pilbara.

The Company owns the Elizabeth Hill Silver Project, located near Karratha in
the Pilbara, which consists of the Elizabeth Hill Mining Lease and exploration
tenements surrounding the historical silver mine which has produced some of
Australia's highest-grade silver ore during the late 1990's. The Company also
owns one of Australia's largest PGM deposits, Munni Munni which hosts a
deposit containing a historic resource of 2.2Moz PGM (Palladium, Platinum,
Gold, and Rhodium).

Competent Person's Statement

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.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

 

The Pinderi Hills Project - Further Technical Information

 

Silver and base metals

The Elizabeth Hill Silver Mine has a pre-JORC compliant resource of c.4.05Moz
of silver and it was Australia's highest-grade silver mine. Over 1Moz of
silver was produced in 1999-2000 from a shaft and on-site processing plant
before the mine was closed due to a dispute between the joint venture partners
in 2000. The Elizabeth Hill Mine is now 100% owned outright by the Company,
and historical drilling, both surface and underground, including detailed and
high-quality underground development sampling, has been compiled into a secure
geological database.

The polymetallic nature of the Elizabeth Hill mineralisation, with recorded Pb
values up to 2.09% (AMC220001), has not been fully accounted for in previous
work on the deposit. This presents Alien with an opportunity to add credits
from other valuable metals, such as gold (Au), platinum (Pt), and palladium
(Pd), amongst others.

The main silver mineralisation is on a structurally controlled fault contact
between granite and ultramafic rocks. The main zone of mineralisation is
plunging steeply to the south, and testing of interpreted parallel structures
is planned for future drilling.

Key assay intersections are(3):

·     Copper:

o    0.4m @ 4.7% Cu, 26ozt Ag, 1.55% Ni from 1.6m in UGD041

o    0.4m @ 4% Cu, 799ozt Ag, 0.8% Ni from 3m in UGD069

o    1m @ 3.98% Cu, 12ozt Ag, 0.95% Ni from 35m in EC002

o    1m @ 3.5% Cu, 125ozt Ag, 1.06% Zn, 0.58% Ni, 0.68% Pb from 2m in
UGD063

 

·     Nickel:

o    0.9m @ 2.95% Ni, 65ozt Ag, 0.15% Cu from 5.1m in UGD073

o    5.2m @ 2.18% Ni, 166ozt Ag, 0.76% Cu, 0.28% Zn from 3m in UGD069

o    1.05m @ 1.90% Ni, 114ozt Ag, 1.25% Cu, from 5.05m in UGD072

 

·     Lead:

o    0.4m @ 9.7% Pb from 1.2m in UGC82406

o    1m @ 4.8% Pb from 11.9m in UGD022

o    1m @ 3.8% Pb from 91m in EC028

o    1.1m @ 3.1% Pb from 8.6m in UGD060

o    1.2m @ 2.05% Pb and 723ozt Ag from 0m in UGD072

 

·     Zinc:

o    1m @ 2.85% Zn, 13ozt Ag, 0.16%Pb from 0m in UGC82057

o    0.95m @ 2.70%, Zn, 0.48% Pb from 4.9m in UGD055

o    1.1m @ 2.65% Zn, 5ozt Ag from 9m in UGD042

o    1m @ 1.06% Zn, 326ozt Ag, 0.5% Pb from 2m in UGD063

The main silver mineralisation is located south of the Volcanogenic Massive
Sulphide ("VMS") Cu/Ni/Pb/Zn anomalism, which has been targeted with several
historical reverse circulation ("RC") holes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 2: Sub Audio Magnetic ("SAM") survey with main target areas(4) at
Elizabeth Hills and surrounding area

 

Platinum Group Metals

The Project contains significant platinum group metal mineralisation. The
Company understands the known mineralisation and believes that additional
discoveries can be made in areas that have not been explored.

The current (2004) resource is a non-JORC 2012 compliant:

24Mt @ 2.9g/t Platinum Group Element ("PGE") and gold for 2.2Moz PGM3

This includes 1.14Moz of palladium, 0.83Moz of platinum, 152koz gold and 76koz
of rhodium. The Munni Munni Project is considered one of Australia's largest
PGE deposits.

The Munni Munni project's geology is well understood, and the Company has the
advantage of building onto existing mineralisation with opportunities for
nearby repeat ore shoots and untested strike extensions. Importantly, the
metallurgy test work completed previously was using historical methods, and
there are now new opportunities for improved metallurgical recoveries at a
time of heightened demand for PGM.

The main Munni Munni resource mineralisation is on the Hunter/Ferguson Reef.
Field mapping and geophysical interpretation highlight a lower reef, Judy's
Reef, that has little or no drilling and also requires basic soil sampling to
advance it towards drill target status.

The schematic below highlights the interpreted stratigraphic position of these
two reefs.

 

Figure 3: Schematic stratigraphy highlighting PGM Reef known and interpreted
locations

Figure 4, below, shows the location of the known Ferguson and Hunter Reef and
the location of Judy's Reef.  It is important to note the lack of drilling in
the vicinity of Judy's Reef. The Company reported some initial promising
results (AIM: 26 April 2023
(https://www.londonstockexchange.com/news-article/UFO/elizabeth-hill-and-hancock-project-updates/15931816)
) from limited RC drilling south of Elizabeth Hill that targeted Judy's Reef.
The results reported from the drilling and geological interpretation
demonstrated that a reef similar to the Hunter/Ferguson Reef at Munni Munni is
located further west of this drilling. The reported anomalous PGE's, Ni, Cu
and elevated Chromium units are of a similar tenor form and reef-style
orientation, with a similar dip to the granite contact as seen at the Munni
Munni Resource area.

Figure 4: Geology and location of PGM Reef locations and Ni/Cu target areas
Munni Munni, Pinderi Hills, WA - Major rock units are: Pink=granite,
purple=ultramafic, green=gabbro

 

Nickel-Copper sulphide mineralisation

The mafic-ultramafic complexes mapped at Pinderi Hills can host massive Ni-Cu
sulphide deposits typically formed along the base of an intrusion or along
magma conduits to the intrusion at its base. The Cadgerina Dyke, Figure 4, is
a magma conduit for the Munni Munni intrusion and remains untested by
electromagnetic ("EM") surveying or drilling, despite having strong
geochemical anomalism.

The Munni Munni Intrusive Complex is tilted onto its side, so the base of the
intrusion is located along the northern edge and eastern edges, where Judy's
Reef West and Judy's Reef PGM reefs form along the basal contact with the
surrounding granite. The base of the Munni Munni intrusion is largely
under-explored for intrusive Ni-Cu-PGE sulphide deposits and requires soil
geochemical surveying, mapping, EM surveying and drilling.

The Ni-Cu mineralisation could be similar to or much larger than that which
was successfully mined in the 1990's at Radio Hill, located c.15km to the
north. Figure 5 provides an example of the style of mineralisation being
explored for a schematic section of the high-grade Radio Hill mineralisation.

 

 

 

 

 

 

 

 

 

 

Figure 5: Cross section of radio Hill Ni-Cu mineralisation

 

Lithium

The Pinderi Hills Project contains areas identified as highly prospective for
lithium pegmatite mineralisation. To allow the Company to focus on Ag, PGM,
and Ni-Cu exploration, it entered a joint venture with Errawarra Resources Ltd
on 29 April 2024 and the Company looks forward to providing updates as
exploration works progress.

 

 

 

 

 

 

 

 

 

 

Figure 6: Pinderi Hills pegmatite swarm extent as at the time of JV
announcement

 

 

 

 

 

 

 

 

 

 

 

Figure 7: Errawarra Resources currently conducting exploration in several
areas at Pinderi Hills, W.A

 

1/ 2004 JORC compliant

2/ Global Strategic Metals NL, Annual Technical Report 2014, non-JORC 2012
compliant

    1moz of the resource has been mined up until 2000-2001

3/ UFO announcement 6 September 2023

 

 

 

 

 

 

 

 

 

(#_ftnref1)

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