Alien Metals to acquire formerly producing Silver Project in Western Australia
The company expects to complete its transaction 2020 from Australian-domiciled Karratha Metals Group following due diligence and third party approvals under the Mining Act and from KMG’s shareholders.
This will entail Alien handing over 200 million common shares issued at a price of 0.14p each, as well as 50 million warrants entitling the holder to one share at a price of 0.25p.
The project, one of the few native silver mines in the country, has previously produced over 1,170,000 oz of silver across two years from 1998 to 2000, reporting an “exceptionally high” mine head grade averaging 2,195 grams per tonne.
“Of note, some of the largest silver ‘nugget’ specimens in Australia have been pulled from Elizabeth Hill,” commented Bill Brodie Good, Technical Director of Alien Metals.
Located in the Pilbara region, Elizabeth Hill contains high grade silver mineralisation associated with the Munni Munni Complex, known to be one of Australia’s most significant platinum group metal sites.
The site was mined during a low silver price environment valued at $5 an ounce compared to $17 today -- at nearly four times the average price, Bill Brodie Good said this historical information is “an excellent indication” of the project’s significant upside potential.
This “significant” historic exploration potential was further demonstrated with 470 holes for over 50,000 m of drilling at the site.
Bill Brodie Good highlighted the project as “a great addition” to the group’s silver assets in Mexico, as well as complementary to its two other projects located in the Pilbara Region.
Following the acquisition’s completion, Alien Metals anticipates its following steps to include a site visit and the gathering of information to outline an initial exploration program.
As the group progresses its acquisition-led strategy, Alien has also identified exploration targets across its 12 mining concessions in Zacatecas, which it is "working to advance systematically."
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