Site visits confirm DSO iron ore potential up to 65% Fe at Hancock Ranges and Brockman projects

12 November 2019

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Alien Metals Limited, the AIM quoted mineral exploration and development company, is pleased to provide shareholders with an update following the recent site visit undertaken by its technical consultants as part of the due diligence on the Hancock Ranges and Brockman iron ore projects. The Company has an exclusive option to acquire 51% of these projects and the site visit has formed part of the due diligence by Alien (see the Company’s announcement dated 20 September 2019 for further information on these projects and the option).

Highlights:

Technical Director of Alien Metals, Bill Brodie Good, commented that “the initial assay results and geological information from the technical due diligence field trip are highly encouraging. Of the 17 samples taken across the two projects, numerous assays returned greater than 60%+ Fe, which is direct shipping ore quality, and the brief geological mapping carried out further enhanced the perceived potential of both projects. The assay results corroborate sampling and drilling undertaken by Volta Mining in 2014 at the Hancock Ranges project, and also the significant potential at the Brockman Iron project, where major iron ore companies are drilling on adjacent tenements.”

The location of the Brockman Iron and Hancock Ranges tenements are set out in figure 1:

Independent assay results

A total of 17 iron ore rock chip samples were taken in the course of the due diligence field work.These samples were initially analysed in the field by a portable X-ray fluorescence device (“PXRF”) followed by full analysis by Li Borate fusion/XRF analysis at the independent Intertek Genalysis laboratory, Perth, Western Australia.

A full table of the assay results is included below.

The geological due diligence carried out along with the supporting assay results confirm the presence of high-grade DSO material within all project targets, identifying areas for follow-up exploration.

Site visit summary

Brockman Iron Project (E47/3953)

The BHP20 Deposit appears to be many metres thick in slope exposure, a couple of hundred metres in width, and to dip gently 20 degrees to the north and to plunge gently towards 240 degrees. It therefore plunges NW across the body of E47/3953, beneath which it could potentially continue at accessible depths.

Photographs of the iron ore outcrop and sample sites for P592810 and P592812 “BHP20 deposit” at the Brockman Iron Project are set out in figures 2 and 3:

The locations of samples with assay results taken in October 2019 at the BHP20 prospect, Brockman Project, are set out in figure 4:

The BHP19 Deposit is located in the far SW corner of E47/3953, and it dips and plunges to the NW, out of the lease, into the adjoining Fortescue Mining Group (FMG) ground. FMG have an active grid drilling programme on the adjacent ground, exploring the NW continuation of the BHP19 Deposit and also what appears to be a considerable deposit of derived detrital iron formation deposited on its immediate southwest side.

The locations of samples with assay results taken in October 2019 at the BHP19 prospect, Brockman Project, are set out in figure 5:

Hancock Ranges Project (E47/3954)

At the Sirius Extension prospect, the drill collars from RC drilling undertaken by Volta Mining in 2014 were located during the site visit. One of these holes (Hole 14SERC004) returned 126m @ 60.28% Fe from surface.

From the site visit, additional parallel fold/fault-repeated outcrops of similar iron formation just to the southwest of the historical drilling were also noted. The observed mineralisation is part of the larger Sirius deposit (124Mt at 60.3% Fe) on the adjoining Brockman leases and there does appear to be potential for discovery of nearby additional iron mineralisation within the Sirius Extension prospect.

The locations of samples with assay results taken in October 2019 at the Sirius Extension prospect, Hancock Ranges Project, are set out in figure 6:

From the ground traverse made during this initial site visit over the Kalgan prospect the mineralisation appeared patchily exposed at surface, as sub-crop and rubble, over a significant area, extending perhaps 500m from SSE to NNW and 200m from E to W.Further to an initial photo-geological study as part of the due diligence its expression suggests that it may be controlled by a zone of NW-SE faulting that cuts across the WNW-ESE stratigraphy.

The locations of samples with assay results taken in October 2019 at the Kalgan Prospect, Hancock Ranges Project, are set out in figure 7:

As announced by Alien on 20 September 2019, historic exploration has identified mineralisation at surface in the Kalgan prospect, with Volta Mining reporting eight rock chip samples which returned grades of up to 68.7% Fe in the prospect area. Assay results from Alien’s recent due diligence site visit confirm these high-grade results, with assay results for the three Kalgan samples returning grades up to 63.9% Fe.

Next Steps

The site visit and independent laboratory results has reaffirmed the Company’s views on the exploration potential of both of the Windfield projects. Following the receipt of the complete due diligence report, the Company will be in a position to make a decision on proceeding with the 51% project acquisition. In conjunction with the Company’s technical consultants, the Board will design a field program to follow up the most prospective DSO areas to get a better understanding of the potential extent of mineralisation.

Table 1: Assay results, site visit samples, Hancock Ranges and Brockman Projects, October 2019

Sample Nbr Tenement Prospect Fe (%) Al (%) Si (%) P (%)
P592801 Hancock Ranges Sirius Extension 62.54 1.46 1.33 0.21
P592802 Hancock Ranges Sirius Extension 58.41 1.5 1.38 0.08
P592803 Hancock Ranges Sirius Extension 64.16 0.49 1.32 0.13
P592804 Hancock Ranges Kalgan 63.9 1.41 1.84 0.13
P592805 Hancock Ranges Kalgan 49.93 1.35 2.37 0.05
P592806 Hancock Ranges Kalgan 62.7 1.06 1.75 0.16
P592808 Brockman Iron ‘BHP20’ 60.27 3.16 2.71 0.09
P592809 Brockman Iron ‘BHP20’ 57.98 3.23 6.87 0.09
P592810 Brockman Iron ‘BHP20’ 57.76 2.18 6.84 0.10
P592811 Brockman Iron ‘BHP20’ 49.86 1.35 21.3 0.09
P592812 Brockman Iron ‘BHP20’ 55 0.99 13.57 0.15
P592818 Brockman Iron ‘BHP19’ 57.5 1.54 7.7 0.13
P592819 Brockman Iron ‘BHP19’ 58.46 1.99 4.21 0.09
P592820 Brockman Iron ‘BHP19’ 59.24 1.83 3.55 0.08
P592821 Brockman Iron ‘BHP19’ 65.43 1.22 0.93 0.13
P592822 Brockman Iron ‘BHP19’ 64.29 1.89 1.44 0.09
P592823 Brockman Iron ‘BHP19’ 59.1 3.93 3.2 0.07

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

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

Alien Metals Limited
Bill Brodie Good, Technical Director
David Taylor, Company Secretary
Tel: +44 (0)20 7887 6599
First Equity Limited (Joint – Broker)
Jason Robertson
Tel +44 (0)20 7374 2212
Beaumont Cornish Limited (Nomad)
James Biddle/ Roland Cornish
www.beaumontcornish.com
Tel: +44 (0) 207 628 3396
Novum Securities Limited (Joint -Broker)
Jon Belliss
Tel +44 (0)20 7399 9425

Notes to Editors

Alien Metals Ltd is an AIM quoted mining exploration and development company. Since the recomposition of the Board and company name change in 2018, Alien has focused on delivering its strategy of acquiring mining projects which demonstrate significant development upside, in jurisdictions with established infrastructure and mining codes, and where strong operational controls can be assured.

In addition to progressing its acquisition-led strategy, following the strategic review of its portfolio of projects in Mexico during 2018-19, the Company has identified exploration targets across its 12 mining concessions in Zacatecas, Mexico, which it is working to advance systematically.

Competent Person Declaration

The information in this release that relates to Exploration Results has been reviewed by Mr. Howard Baker, an independent technical consultant to the Company. Mr. Baker is a Chartered Professional Fellow of the Australasian Institute of Mining and Metallurgy (Membership Number 224239) and a Competent Person as defined by the rules of International Reporting Codes that are aligned with CRIRSCO. Howard Baker has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration targets, Exploration Results, Mineral Resources and Ore Reserves’, also known as the JORC Code. The JORC code is a national reporting organisation that is aligned with CRIRSCO. Howard Baker consents to the inclusion in the announcement of the matters based on his information in the form and context in which they appear.

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

BIF Banded Iron Formation
Breccia rock consisting of angular fragments of stones cemented by finer calcareous material
CRM Standard ‘controls’ or standards used to check the quality and metrological traceability of products, to validate analytical measurement methods, or for the calibration of instruments
Detrital particles of rock derived from pre-existing rock through processes of weathering and erosion
DSO direct shipping ore. naturally occurring high-grade iron ore that does not require processing prior to transport
PXRF a handheld/portable X-ray fluorescence device used in analysing composition of rocks
Subcrop geological formation that is close to the surface but is not outcropping
Traverse to move or travel through an area
Weathered breakdown of rock at the Earth’s surface, due to climatic and biological processes