Key points:
- Alien Metals shares soared 28.1% on impressive Elizabeth Hill drill results.
- The miner identified significant silver deposits within the license area.
- The company’s shares appear cheap at current prices after the announcement.
The Alien Metals Ltd (LON: UFO) share price soared 28.1% after encountering significant copper deposits during its maiden drilling program at the Elizabeth Hill Silver Project.
Initial results from the project, which is located in Western Australia’s Pilbara region, demonstrated the presence of extremely high-grade silver deposits near the surface.
Investors cheered the results, as evidenced by the 28.1%rally in Alien Metals shares. However, the company is still awaiting all the drill results, as today’s data was based on a small sample from four drill holes.
Also Read: The Best Copper and Copper Mining Stocks to Buy.
Today’s results’ highlights included 8,326 g/t Ag @ 9.7m from 15m in one drill hole. The second drill hole registered 1,735 g/t Ag @ 11.7m from 23m and 19,865g/t Ag @ 1.7m from 2m.
The above results are extremely rare in the mining industry, indicating that Alien Metals has a world-class asset in the Elizabeth Hill project.
Other report highlights indicated that the project also contains significant base metals evidenced by results such as 14.2m @ 0.14% Ni, 0.18% Cu, 0.36% Pb, 140 g/t Co and 0.12% Zn from 10.5m.
These are promising results, with the company saying that the significant nickel, copper, cobalt, lead, and zinc deposits could be regarded as significant associated products when the mine commences production.
Alien Metals is set to benefit from the rising global demand for silver and other base metals driven by the growing popularity of electric vehicles and the renewable energy trend fueled by such metals.
Bill Brodie Good, Alien Metals’ CEO & Technical Director, commented: “These fantastic initial results support the Company's view that the near-surface oxide expression of the deposit was never fully tested, nor its potential fully explored for both the silver and the base metals present. Some of these grades have to be some of the highest for a silver project in Australia. We look forward to receiving the outstanding RC drill results, which will enable us to further interpret these results along with the historic results to aid in planning the next round of work programmes to advance the heavily endowed Elizabeth Hill and Munni Munni mineralised system.”
Alien Metals reassured investors that transferring the ownership of the Munni Munni North ELA and the Elizabeth Hill Mining Lease was progressing well. The company is also n the process of acquiring a 90% stake in the Hamersley Iron Ore Tenements.
Alien Metals shares look pretty attractive at their current prices after falling 34.87% in the past 12 months. However, the shares are up 10.96% since the year started.
*This is not investment advice. Always do your due diligence before making investment decisions.
Alien Metals share price.
Alien Metals share price soared 28.16% to trade at 0.801p, rising from Wednesday’s closing price of 0.625p.