Alien Metals Limited High Grade Silver at San Celso & Los Campos (1732Z)

TIDMUFO

RNS Number : 1732Z

Alien Metals Limited

16 September 2020

Trading Symbols

AIM: UFO

FWB: I3A1

16 September 2020

Alien Metals Ltd

("Alien" or "the Company")

http://www.rns-pdf.londonstockexchange.com/rns/1732Z_1-2020-9-16.pdf

Field work confirms high grade Silver at San Celso and Los Campos Silver projects, Mexico and

Strike length of Silver mineralisation extended through acquisition

Alien Metals Limited ("Alien Metals" or "Company"), the exploration and development company, is pleased to announce results of the recent sampling programmes on the San Celso and Los Campos silver projects in Mexico. The results show strong correlation with historic results, increasing confidence in future drilling programmes to be undertaken at San Celso and Los Campos. The Company has also signed final legal documentation to allow it to carry out exploration work with an option to acquire the Nueva Andromeda permit located contiguous to the east of the San Celso project area. Both of these events tie into the long-term development plans for these projects.

Highlights:

   -      Sampling programme results show excellent correlation with historic sampling 
   -      Continued high-grade results across both projects 
   -      Added detail for maiden drill campaign planning 

- Option agreement signed for acquisition of highly prospective Nueva Andromeda permit adjacent to the San Celso project, expanding project footprint and mineralisation potential (increasing strike length to nearly 3000 metres ('m'))

o Permit hosts a continuation of the Andromeda vein, which runs into the San Celso project

o Andromeda vein has been mapped with historical workings for over 500m

Bill Brodie Good, Chief Executive Officer, commented:

"We are pleased to have completed further underground and surface sampling at San Celso and Los Campos. In total, 12 samples were collected across the projects as well as some surface reconnaissance on neighbouring ground on strike south of the San Celso project area with signs of further historic mining. The results further validate the high-grade underground grades; the continuity away from the historic workings encourages us to push ahead with the next stage drilling work. Recent heavy rains and underground conditions limited the extent of the sampling programmes, however we are looking forward to getting back on the ground in the near-term.

"With the acquisition of the Nueva Andromeda permit, we will enhance the potential of the San Celso project. We believe the combined project area hosts the potential to be a sizeable, high-grade silver project, and we are looking forward to being able to do further mapping and sampling over the Andromeda vein prior to the next stage of drilling."

Figure 1: Location of San Celso and Los Campos projects, Zacatecas Silver Belt, Mexico

San Celso (Silver)

Background

Located within the Zacatecas Silver belt of Mexico, the San Celso project is a highly prospective silver target in a favourable mineralised district. Previous exploration programmes at San Celso have highlighted the high-grade silver potential of the project.

Having located recently the details of the 2006 underground sampling undertaken on the San Celso and Las Christinitas historic mines, the Company was given significant encouragement for the project as they highlight the continuous high-grade nature of the historic workings and show that the mineralisation continues on strike and down dip within the historic mined areas. In 2006, the Company (as Arian Silver) collected a total of 438 samples from the San Celso and Las Cristinitas underground workings and surface dumps, and the three levels were accessible in the San Celso mine by approximately 130m of ladder. Of these, 265 chip-channel samples were from the Las Cristinitas workings. Assay results included a 4.65m interval at >1000 grams per tonne ('g/t') silver ('Ag') including 1.05m at 2,683 g/t Ag, 78.2 ounce per tonne ('Oz/t') Ag with an average of 460 g/t Ag from 60 samples > 200 g/t Ag from the La Christinitas vein and an average of 497 g/t Ag from 77 samples > 200 G/t Ag from the San Celso vein.

Update

The recent follow up underground sampling programme was designed to confirm previous sampling as well as infill certain gaps to get a complete picture and understanding of the main mineralisation. Four samples were taken underground from the San Celso historic mine area, at the 2,132m level.

The new assay results support the historic sampling with sample suite SC066 returning composite 0.9m at 477 g/t Ag (including sample SC066B that returned 950 g/t Ag from a 30 cm channel sample) compared to the 2006 sample result of 0.5m at 422 g/t Ag, while sample suite SC062 returned composite 1.4m at 225 g/t Ag compared to the 2006 sample results of 1.6m at 335 g/t Ag. The samples were taken as close to the originals as possible and confirm to Alien the high grade and economic widths of the Las Christinitas vein.

Surface reconnaissance was undertaken to the south east of the San Celso project boundary, which revealed more historic workings and continued high grade silver potential along strike. Alien is in the process of applying for the surrounding vacant areas.

Figure 2: Location and grade of samples (red, AgEq) with 2006 sampling results, San Celso Mine, San Celso Project, September 2020

Figure 3: Detailed location and silver results of underground samples, 2132 Level, San Celso Mine, September 2020

Los Campos (Silver)

Background

Located within the Zacatecas Silver belt of Mexico, previous exploration activity at Los Campos highlighted the high-grade silver potential of the project, which features a historic mine within the project area which records show was mined between 1883 until all work stopped in 1904. The mine achieved an average mine head grade of over 1,000 g/t Ag (32.2 oz/t Ag) in the early 1890s. The project is also situated adjacent to Endeavour Mining's (TSX:EDV) El Compas operating silver-gold mine.

Update

As at the San Celso project, Alien was keen to access and sample part of the historic underground mine to add knowledge and understanding of the mineralised systems to better plan and target a future drilling campaign.

The Company's exploration team attempted to access the underground workings at Los Campos, however they were unable to safely access historic adits due to recent torrential rain and unstable entry points. Alien intends to revisit the Los Campos project in the coming months to refurbish entry areas.

Further surface sampling and review work was carried out in the central southern area of the project, along the surface from historical workings. This returned some further excellent results associated with the main north-west/south-east trending workings, with a maximum result of 361 g/t Ag. These results support previous sampling and add further encouragement for the next stage of exploration and upcoming maiden drilling programme. Samples from smaller vein systems striking oblique to the main system returned background results helping to focus next stage onto the core known defined mineralised veins already identified.

Table 1 below summarises all results from the recent sampling programme for both project areas. Due to the number of samples submitted and the reconnaissance focused nature of the programme, Alien did not insert any standard or blank samples into the sample batch. The in-house sample QA/QC completed by ALS was deemed acceptable for the purposes of this work. All samples were analysed by Aqua Regia Digest with ICP finish for Au for 35 elements at ALS Zacatecas, Mexico.

Alien is now focussed on finalising necessary permitting to carry out maiden drill programmes on both projects as soon as possible.

Figure 4: Location of work, Los Campos, August 2020

Figure 5: Location of surface samples and silver results, Los Campos, August 2020

Table 1: Sample details, San Celso and Los Campos, August 2020

 
                                                              ALS Mexico Analysis 
   Project       SAMPLE_ID       Location     Au_ppm   Ag_ppm   Cu_ppm   Ni_ppm   Pb_ppm   Zn_ppm 
                                             -------  -------  -------  -------  -------  ------- 
  San Celso       SC062A       Underground     0.0      50.6     97.0     3.0     920.0    5810.0 
              --------------  -------------  -------  -------  -------  -------  -------  ------- 
  San Celso       SC062B       Underground     0.0     401.0     83.0     1.0     4640.0   4680.0 
              --------------  -------------  -------  -------  -------  -------  -------  ------- 
  San Celso       SC066A       Underground    <0.005    4.5     189.0     8.0     274.0    4440.0 
              --------------  -------------  -------  -------  -------  -------  -------  ------- 
  San Celso       SC066B       Underground     0.0     950.0    135.0      <1     5550.0   >10000 
              --------------  -------------  -------  -------  -------  -------  -------  ------- 
                                 UG Mine 
 Los Campos      TC820-001         dumps       0.0     361.0    120.0     23.0    304.0    503.0 
              --------------  -------------  -------  -------  -------  -------  -------  ------- 
                                 UG Mine 
 Los Campos      TC820-002         dumps       0.1      47.1     65.0     20.0    578.0    727.0 
              --------------  -------------  -------  -------  -------  -------  -------  ------- 
                                 UG Mine 
 Los Campos      TC820-003         dumps       0.3     254.0     69.0     18.0    1160.0   952.0 
              --------------  -------------  -------  -------  -------  -------  -------  ------- 
                                 UG Mine 
 Los Campos     T20820-001         dumps       0.0      0.6      15.0     38.0     9.0      55.0 
              --------------  -------------  -------  -------  -------  -------  -------  ------- 
                                 UG Mine 

 Los Campos    TNW-0820-001        dumps       0.0      17.8     15.0     3.0     372.0    744.0 
              --------------  -------------  -------  -------  -------  -------  -------  ------- 
 Los Campos     TC0720 288      Quarry/Pit    <0.005    0.2       <1      1.0      2.0      5.0 
              --------------  -------------  -------  -------  -------  -------  -------  ------- 
 Los Campos     TC0720 289      Quarry/Pit    <0.005    0.2       <1      1.0      2.0      5.0 
              --------------  -------------  -------  -------  -------  -------  -------  ------- 
 Los Campos     TC0720 290      Quarry/Pit    <0.005    0.2       <1       <1       <2      2.0 
              --------------  -------------  -------  -------  -------  -------  -------  ------- 
 

UG Mine dumps at surface

Alien has signed an option agreement with the holders of the Nueva Andromeda permit, which is contiguous to the San Celso project. This agreement will give Alien exclusive exploration and mining rights within the tenement for a period of three years for a minimal annual fee (3,000 USD) with an option to buy the rights to the property at the end of the three-year period.

Figure 6: Location of Nueva Andromeda permit with historically mapped vein and mining areas, San Celso Project, August 2020

The Nueva Andromeda tenement is a significant addition to the San Celso project as it contains the main strike length of the mineralised Andromeda vein, which has already been identified in the current project area. From previous field work Alien has already noted further historic mining along this vein. The acquisition of Nueva Andromeda will increase the high grade silver mineralised strike length from 2,500m to at least 3,000m, therefore Alien believes that this addition will greatly enhance the economic prospectivity of the project.

Further adjacent vacant ground around the San Celso project is also being applied for directly by Alien through the normal processes at the Ministry of Mines in Mexico and updates will be provided as news becomes available.

Alien is also continuing discussions with a range of parties regarding potential joint venture opportunities; however, no binding agreements have been reached to date.

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

 
                        Alien Metals Limited                                        First Equity Limited (J oint 
                         Bill Brodie Good, CEO & Technical                           Broker) 
                         Director                                                    Jason Robertson 
                         St-James' Corporate Services,                               Tel [phone] 
                         Company Secretary 
                         Tel: [phone] 
                        Beaumont Cornish Limited (Nomad)                            Novum Securities Limited (Joint 
                         James Biddle/ Roland Cornish                                Broker) 
                         www.beaumontcornish.com                                     Jon Belliss 
                         Tel: [phone]                                   Tel [phone] 
 
                          Blytheweigh (Financial PR)                                  Turner Pope Investments (TPI) 
                          Megan Ray/Rachael Brooks                                    Limited (Joint Broker) 
                          Tel: [phone]                                   Andy Thacker/ Zoe Alexander 
                                                                                      Tel [phone] 
 
 

Notes to Editors

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 on precious and base metal commodities.

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 12 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.

Qualified Person

The information in this report that relates to exploration targets, exploration results, and other information of a technical nature has been reviewed by Dr Lex Lambeck Ph.D, a technical consultant to the Company. Dr Lambeck is a Member of the American Institute of Professional Geologists and a Certified Professional Geologist, CPG-11734, with over 15 years of relevant experience in exploration and assessment of resource projects.

Forward-Looking Information

This press release contains certain "forward-looking information". All statements, other than statements of historical fact that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are deemed forward-looking information.

This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company as well as certain assumptions, including the availability of sufficient funds. Forward-looking information is subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realised or substantially realised, there can be no assurance that they will have the expected consequences to, or effects on the Company.

Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

Glossary:

ppm - Parts per million = grams per ton

g/t - Gram per ton

Ag - Silver

AgEq - Silver equivilant which means the silver grade plus the silver equivalent of gold grade, with gold grade converted to silver grade based a conversion ratio of gold to silver at the time of such conversion.

Au - Gold

Cu - Copper

Ni - Nickel

Pb - Lead

Zn - Zinc

UG Mine dumps - Material extracted from the historic underground workings left at surface as uneconomic by previous miners.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

DRLSFUSUMESSESU

(END) Dow Jones Newswires

September 16, 2020 05:13 ET (09:13 GMT)