- The newly acquired area lies adjacent to the Citronen zinc-lead project which is owned by Ironbark Zinc Limited
- Citronen, one of the largest undeveloped zinc-lead projects, hosts a resource in excess of 13 billion pounds of contained zinc and lead metal
- Alien Metals will soon be starting with a detailed review of historical data available over the project area
The FTSE Aim-All Share minerals exploration and development company Alien Metals Ltd (LON: UFO) has recently acquired an exploration licence for a 208 square kilometer area in northern Greenland. The area is surrounded by the world class zinc-lead project Citronen, which is owned by the Ironbark Zinc Limited. The Citronen project is one of the world's largest undeveloped zinc-lead projects, hosting 13 billion pounds of contained zinc and lead metal, with a JORC resource of 131.1 million tonnes @ 4.5 per cent zinc and lead. Alien Metals is expected to do a detailed review of historical data available over the project area soon.
Alen Metals has acquired the licence until 31 December 2023. It is in line with the company's strategy to identify the counter-cyclical opportunities in first class mining jurisdictions with excellent upside potential. The licence area covers the prospective ground on the east and west of the Citronen project area. In order to gain a better understanding of the licence potential and to aid maiden exploration, the company had begun with the process of obtaining all historical information relevant to the licence area. Discussions on the joint venture and earn into the newly acquired exploration licence had also started with third parties.
CEO Bill Brodie Good has said that the group along with its advisers are continuously assessing new projects and are identifying an opportunity to secure an exploration footprint in northern Greenland.
Besides, he added that the company is focusing on undertaking a comprehensive review of the licence area to guide initial work programmes immediately.
Bill said Greenland possesses a great potential in the resource sector and is known for its low-sovereign risk and prospective geology.
Projects undertaken by Alien Metals
San Celso and Los Campos Silver Projects, Mexico (100 per cent)
On 26 October, the company announced that IBK Capital investment bank has agreed to support Alien’s Mexico silver projects.
Followed by the successful earn-in transaction with Capstone Mining regarding the Donovan 2 copper-gold project of Alien Metals, as announced on 21 October, the company is presently working with IBK Capital on a similar marketing process for the San Celso and Los Campos silver projects in Mexico.
According to IBK, both the aforesaid projects will offer an attractive entry into one of the world's premier silver belts. Following the recent field work indicating the historic underground workings, both the projects are ready for drilling.
Donovan 2 Copper Gold Project
The company had been in discussion with Canada-based Capstone Mining to finalise a JV agreement for a copper gold project, Donovan 2. The deal was initiated on 21 October in a successful earn-in transaction.
Elizabeth Hill Silver Project (100 per cent)
The company had announced on 25 September that it had finalised 100 per cent acquisition of the Elizabeth Hill Licence from Karratha Metals Group. As a first step of field work, the trenching program is in its planning stages to explore for repeat silver mineralisation close to the existing mine.
Hamersley Iron Ore Projects (51 per cent)
There are two projects of Alien Metals which belongs within the Hamersley Province of Western Australia. They are known as the premier iron ore producing regions of the world. The first project is located in the west Hamersley Province, 100 kilometres northwest of the Rio Tinto iron ore mining town of Tom Price, and 90 kilometre west of the Tom Price to Dampier mine railway and is known as the Brockman Project.
The second project, Hancock Ranges Project, is situated in the east Hamersley Province, 15 kilometre north of the BHP iron ore mining town of Newman, and 20 kilometre west of the Newman to Port Hedland mine railway.
With the total assets of US$1.6 million (2019: US$1.2 million), Alien Metals Limited recorded a cash balance of US$0.7 million (2019: US$0.4 million) for H1 2020 ending 30 June. The company incurred an operating loss of US$0.4 million (2019: US$0.6 million) and a loss per share of US$0.0003 (2019: US$0.0005). Alien Metals also raised an amount of US$1.2 million through the private placings of shares, before costs and expenses were raised.
On 27 October around 2:56 PM, UFO shares were trading at GBX 1.73, down by 9.21 per cent against the previous day closing price of GBX 1.90. The YTD return on price of 763.64 per cent was recorded by the company.
Finally, after securing the Greenland license,Alien’s morale has been boosted and it is aiming towards maximising its efforts towards exploration and development. Simultaneously, the company could also be considering third party funding options to develop and mining the projects, which would minimize the dilution to shareholders.