Alien Metals Ltd (LON: UFO) share price by 12.1% despite releasing a positive update regarding its maiden drilling programme at its Elizabeth Hill Silver project in Western Australia.
The mining company told investors that the drilling programme had uncovered visible sulphides, including pure silver and nickel and copper sulphides.
The visible deposits seem to confirm the company’s view that the area hosts a larger polymetallic deposit around the initial high-grade silver project.
Alien Metals clarified that it had reached a high-quality core, logged, cut and despatched. However, the company is yet to receive the initial assay results from the diamond drilling, having drilled 4 holes totalling 211 metres of diamond drilling.
The mining company has drilled 753 metres at the Elizabeth Hill project and still has 1,100 metres of RC drilling left. The company has decided to switch to RC drilling to cover more ground faster while sticking to its initial budget.
Alien Metals expects to switch to more precise diamond drilling in future once it completes the current RC drilling phase.
Bill Brodie Good, Alien Metals' CEO & Technical Director, commented: “We are very much looking forward to receiving the initial assay results from the diamond drilling. So far, the drilling program has given us some excellent geological information and some very encouraging visual results, including pure silver and copper and nickel sulphides. Importantly, the core has been logged, cut, and samples despatched over the past week.
Alien Metals shares had recouped most of their losses at writing, having bounced off the crucial 0.725p support level. Investors looking to buy UFO shares should wait for a retest of the support level or a break above the upper resistance level before jumping in.
*This is not investment advice.
Alien Metals share price.
Alien Metals shares fell 12.13% from their opening price of 0.824p to a low of 0.724p.
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