Donovan 2 Exploration Update

April 29th, 2019

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Alien Metals Limited (“Alien” or the “Company”) is pleased to announce an exploration update for the company’s 100% owned Donovan 2 mining concession.

Highlights

  • Detailed surface mapping:
    • further supports indications of Volcanogenic Massive Sulphide (VMS) mineralisation on multiple target areas which are open along strike
    • identified zones of alteration indicating the top of a VMS system
    • of low-lying outcrop has identified additional areas of pervasive alteration
  • Sample assays of up to 3.34% Cu and 0.25% Zn
  • Geophysics suggests magnetic and resistive units are correlated at depth below areas of surface mineralisation and alteration
  • Ongoing mapping of historical underground mine workings reveals copper mineralisation
  • Geophysical gravity survey in progress to test for inference of sulphide mineralisation

Peter Taylor CEO of Alien commented: “The district surrounding Donovan 2 is staked by Mexican and Canadian base and precious metal producers. We are delighted to be rubbing shoulders with these mining companies and look forward to updating the market with the gravity survey, further assays and drilling results.”

The Donovan 2 project is located 45 Km southeast of Zacatecas city, Zacatecas State, Mexico. Alien’s geologists collected 44 surface samples consisting of: rock chip, float samples and historic dump samples during a detailed exploration program to complement the geophysics and surface mapping conducted since November 2018. Three samples returned assays in excess of 1000ppm Cu.

Mineralisation at Donovan 2

Volcanogenic massive sulphide ore deposits, also known as VMS ore deposits, are a type of metal sulphide ore deposit, mainly copper-zinc which are associated with and created by volcanic-associated hydrothermal events in submarine environments. VMS style deposits occur in clusters on the ancient sea-floor. Similar VMS style projects include the Teck Resources Limited San Nicolás Property that lies within 24km of Donovan 2 and reports a National Instrument 43-101 compliant Measured and Indicated resource of 108.9Mt and average grades including 1.16% Cu and 0.43g/t Au.

Surface Exploration

Since commencing detailed exploration activities at Donovan 2 in November 2018, the company has completed detailed mapping on the 746-hectare property. The samples consisted of rock-chip, dump samples from historic workings, and float samples (not in-situ surface samples). The samples are delivering valuable information to guide ongoing targeting efforts.

Highlighted rock chip, float and dump samples

Sample ID

Sample Type

Cu ppm

Zn ppm

Pb ppm

Au ppm

6872

Dump

33,400

636

17

<0.005

6899

Float

3,440

2,420

338

<0.005

6883

Chips

1,870

275

17

<0.005

6874

Dump

934

77

12

0.019

6877

Dump

267

16

2

<0.005

6876

Float

141

20

2

<0.005

6894

Float

136

2,500

723

0.031

This has included the identification of two main target areas for follow up work, known as Cerro de la Cruz and El Bordo. Forty-four surface samples were collected and analysed during the mapping and prospecting campaign. Of specific interest are zones of silicification, alunite veining and high-grade quartz float samples at the Cerro de la Cruz target including sample 6872 with an assay of 3.34% Cu. Dump sample 6872 has been traced to historical underground mine workings. The mine has been entered and the copper-bearing structure has been identified. Further detailed mapping and sampling are in progress. The El Bordo target is essentially under soil cover with minimal surface samples.

The results from the Total Magnetic Intensity and Induced Polarity (“IP”) surveys further support and identify the two main targets. Images showing copper assay values and surface alteration, together with resistivity and chargeability 2D inversion models generated using UBC DCIP2D v5 inversion code, have been published on www.alienmetals.uk/projects/vms-projects/exploration-results.

The objective of the detailed mapping program on Donovan 2 was to provide further supporting evidence of VMS style mineralisation at Donovan 2.

The identification of zones of alteration consisting of alunite veining, chalcedonic quartz veinlets, silicification and traces of kaolinite in combination with anomalous values of copper and zinc are suggestive to be the top of a VMS system. These zones are open along strike to the northwest and southeast. These results based on success of the initial detailed surface mapping allows for a further follow-up geophysical program. A detailed gravity survey is currently in progress over the two target areas. Subject to these results, a drill campaign will be undertaken in Q2.

Standards were inserted approximately every 15th sample in the sample suite and blanks were carefully inserted between mineralised vein samples. Samples were placed in high-density plastic bags and sealed with plastic ties. Samples were stored in a locked warehouse until company geologists delivered samples to ALS Global Preparation Facilities in Zacatecas City, Zacatecas State, Mexico.


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

Peter Taylor, CEO

David Taylor, Company Secretary
Tel: +44 (0)20 7887 6599

Yellow Jersey PR Limited

Felicity Winkles/Annabel Atkins

Tel: +44 (0)774 884 3871

Beaumont Cornish Limited (Nomad)

James Biddle/ Roland Cornish

www.beaumontcornish.com

Tel: +44 (0) 207 628 3396

First Equity Limited (Broker)

Jason Robertson

Tel +44 (0)20 7374 2212

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.


Notes to Editors

Alien Metals Limited 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.

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