Alien Metals Ltd  (AIM: UFO ) has confirmed Capstone Mining Corp (“Capstone”) (TSX: CS) has commissioned a detailed close spaced surface Induced Polarisation (IP) survey over its Donovan 2 Copper-Gold project in Mexico.
The IP survey will be in the order of approximately 25.2 line-kilometres over 15 lines of variable length. The data acquisition is estimated to take around 25 days with follow up data interpretation a further couple of weeks. The IP survey is being carried out by Zonge International of Arizona, USA, who have extensive experience of working in Mexico.

The work is due to commence imminently, with all necessary access rights for the target area provided and will cover most of the tenement to both add infill detail to the northern anomaly already defined by Alien and as an extension to historic geophysical work undertaken by Alien.

As part of the earn-in agreement signed 22 October 2020, “Capstone are managing main elements of the program while Alien provide the necessary in-country support and help as required and we are looking forward to some enhanced results from this work.” Commented Bill Brodie Good, CEO & Technical Director of Alien Metals.

“The Company is extremely encouraged by the speed of progress by the excellent Capstone technical team to push ahead quickly on exploration of the project. While knowing that Alien had planned to do a maiden drilling program Capstone considered that commissioning a more detailed ground IP survey to compliment historic work done by Alien while awaiting the necessary drill permitting would refine or reaffirm the existing drill targets.” Added Bill.

Location of Donovan 2 Project, Zacatecas Region, Mexico

Alien are looking forward to the results of this work and will be reported on all findings in due course.

Brad Mercer, Senior Vice President of Operations and Exploration, Capstone Mining Corp. commented: "We review many business opportunities every year but very few meet our high criteria. Donovan 2 has the potential to be a high grade, near surface deposit in a world class mining district. Zacatecas is mining friendly and is where we operate a Tier-1 asset, the Cozamin Mine less than 60km to the NW on the Pan-American Highway. Capstone and Alien are fully aligned on an early stage plan and we look forward to exploring Donovan-2 together."  

Shares in Alien Metals have increased by over 200% during the past three months following a series of positive announcements from the Company to close at 1.425p before this announcement.

3 Reasons to Follow UFO

Alien Metals Ltd is a mining exploration and development company listed on AIM of the London Stock Exchange (LSE: UFO). 

The Company’s focus is exclusively on precious and base metal commodities.

Multi-Mineral Portfolio

UFO’s portfolio of exploration stage assets include volcanogenic massive sulphide style mineralisation (copper, zinc and lead), high-grade silver projects in Mexico and a 51% interest in two highly prospective iron ore projects in the Pilbara region in Australia. 
The company said its portfolio may be expanded to include other minerals such as iron ore and lithium, and jurisdictions within Africa and Asia where its management has demonstrable expertise advancing assets in line with international reporting standards.

Expanding License Areas

In recent weeks, the company was granted a 208 km2 exploration licence by Ironbark Zinc surrounding the Citronen zinc-lead project, a high-grade metal project located in northern Greenland which is believed to be one of the world's largest undeveloped zinc-lead projects.
The minerals exploration and development company said the project holds a JORC resource of 131.1m tonnes @ 4.5% zinc and lead for 13bn pounds of contained zinc and lead metal.

The licence is valid until 31 December 2023 and continues UFO’s strategy of identifying counter-cyclical opportunities in first class mining jurisdictions with ‘excellent upside potential.’

Location of Ironbark Zinc Ltd’s Citronen zinc-lead deposit and permit area, Greenland


 
[Source; UFO]

"The Company and its advisers continue to assess new projects and identified an opportunity to secure an exploration footprint in northern Greenland on strike and adjacent to the world class undeveloped Citronen zinc-lead project,” said CEO, Bill Brodie Good.

IBK believes the projects offer an attractive entry into one of the world's premier silver belts and will soon start marketing them to a range of potential investors and project partners.

UFO said it will continue its efforts in exploring and developing the projects and simultaneously consider third party funding options to develop and mine the projects.

In other recent news, the company has also recently completed a detailed geological mapping and sampling programme at the Hamersley iron ore projects in Australia with field observations indicating that two of its prospects may be part of the same larger system.

The two projects, which have demonstrated “great potential” are located in the Hamersley Province which is known as one of the premier iron ore producing regions of the world. 

Preliminary handheld XRF results are consistent with those observed in the 2019 field programme, with reported ranges of between 40% and 70% iron. 

Alien Metals has now commenced preparing a Program of Works ("POW") for submission ahead of drilling.

Meanwhile, North American advisor firm IBK Capital has commenced the marketing process for the Company's San Celso and Los Campos silver projects which are located in Mexico.

The process for the silver projects follows the successful earn-in transaction with Capstone Mining announced earlier in October 2020 regarding UFO’s Donovan 2 copper-gold project.

Location of Ironbark Zinc Ltd’s Citronen zinc-lead deposit and permit area, Greenland

 

[Source: UFO]

Complementary Acquisitions

Alien Metals has embarked upon an acquisition-led strategy headed by a high-quality geological team to build a strong portfolio of diversified assets including two recent acquisitions in 2019. These include the Brockman and Hancock Ranges high-grade (Direct Shipping Ore) iron ore projects and the Elizabeth Hill Silver projects both located in the Pilbara region, Western Australia.

In addition to progressing and developing its portfolio of assets and following its strategic review of its portfolio of silver and precious metals projects in Mexico, Alien Metals has identified priority exploration targets within its 9 mining concessions which it is working to advance systematically. The Company’s silver projects are located in the Zacatecas State, Mexico’s largest silver producing state which produced over 190m oz of silver in 2018 alone accounting for 45% of the total silver production of Mexico for that year.

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