Alien Metals assumes full control of work at Donovan 2 project
(UFO ) said Capstone Mining Corp have decided not to proceed on the Donovan 2 Copper-Gold project thereby terminating a previously agreed earn-in agreement between Alien, Estrella de Plata, Capstone Mining Corp. and Capstone Gold S.A. de C.V. from July.
The minerals exploration and development firm said Capstone will provide Alien with all the technical data generated during their tenure as well as a final report outlining their findings as per the original agreement which was previously signed back in October 2020.
Commenting on the news, Bill Brodie Good, CEO & Technical Director of Alien Metals, said: "Capstone have decided not to proceed with the exploration on Donovan 2 advising that their corporate strategy has shifted and also that they did not receive sufficient confidence from their maiden drilling recently completed on Donovan 2 (Fig 1) to continue.”
Capstone advised that their work was not exhaustive and with coincidental work just done a couple of days ago by Alien we are already starting to think about how we may approach further exploration work. It has been great working with the Capstone team and we appreciate their input to date which we hope to build and develop on for the future of the project."
Figure 1: Location of Donovan 2 Project, Zacatecas Region, Mexico in relation to TECK San Nicolas VMS Copper deposit, June 2021
(Source: Alien Metals)
Once all received, Alien will review this and combine with its own technical views to make a decision on the way forward and will update the market as soon as this is available.
Going forward, Capstone will arrange for a revocation of the transfer agreement while Alien will revert back to being the Project operator and retain a 100% interest in the Project.
In recent days, a fresh sample of mineralised material (Fig 2.) taken from the Los Alamos water well target by Alien as part of a follow up piece of work to aid in further targeting work.
Figure 2: Malachite and sulphide bearing quartz from Los Alomos Prospect, Donovan 2, June 2021
(Source: Alien Metals)
Alien said that once all data is received and reviewed, it will be in a position to report more fully on the work done by Capstone and the conclusions and plans for next stage work.
View from Vox
Despite Capstone's withdrawal, Alien Metals has told investors that it believes it can use the existing work and data ‘more fully’ in order to construct a plan for the next stage of work.
In recent days, Alien extracted a fresh sample of mineralised material taken from the Los Alamos water well target as part of its follow up piece of work to aid in further targeting work.
Reasons to UFO
UFO’s portfolio of exploration stage assets includes 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 Licence 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.’
"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.
Alien Metals has executed 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 iron ore projects and the Elizabeth Hill Silver projects both located in the Pilbara region, Western Australia.
In addition to progressing 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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