- Alien Metals just released positive final drill results from Elizabeth Hill.
- The results included two high-grade silver deposits from pending holes.
- Investors' sentiment remained negative due to falling silver prices.
Alien metals just released the final assay results from its inaugural drilling campaign at the high-grade Elizabeth Hill silver project in Western Australia. Yet, its shares fell despite the final results containing positive surprises.
The minerals exploration and mining company revealed that the pending results from two holes revealed further thigh-grade Silver deposits, including 8m at 4,233 g/t Ag (149oz/t Ag) from 66m in drill hole AMEHRC009; and 2m at 1,550 g/t Ag (55oz/t Ag) from 108m, in drill hole AMEHRC012.
The impressive news did little to impress investors apart from a short spike higher; Alien Metals shares quickly reversed course and fell heavily, mimicking the decline in global silver prices over the past week.
Investors were unimpressed by the positive drill results indicating that the Elizabeth Hill project might contain significant silver deposits that could earn Alien Metals decent revenue in future once the project reaches commercial production.
Investor sentiment was mainly negative as falling silver prices showed no signs of easing earlier today as the trading week began signalling another week of potential losses for the metal.
The falling silver prices could be related to the looming lockdowns in China that threaten to trigger massive global supply disruptions as the country pursues a zero-COVID policy.
Many have faulted the country for its frequent lockdowns of entire cities, arguing that it should adopt the same lax approach taken by its Western counterparts that have reopened their economies and relaxed most restrictions to boost economic growth.
Most countries have adopted a scientific model of co-existing with the coronavirus that has even infected people who have been vaccinated multiple times, mainly because the death toll from the virus is pretty minimal.
The Alien Metals share price has also suffered from the broader decline in the UK markets driven by negative investor sentiment amid weak global growth prospects.
The latest decline may give interested investors a chance to invest in UFO shares, but there are no guarantees that we won’t get further declines in future.
Bill Brodie Good, Alien Metals’ CEO & Technical Director, commented: “The final assay results provide further confirmation of the exceptionally high-grade tenor of the silver mineralisation at Elizabeth Hill, with additional excellent intersections within the historic orebody. The intersection within hole AMEHRC0012, which was drilled on the south of the orebody, is significant as it encountered high-grade mineralisation at a depth where we always thought there might be a possible repetition of the Elizabeth Hill silver orebody.”
Despite the impressive results, Alien Metals' shares fell 14.3% to trade at 0.749p.
*This is not investment advice. Always do your due diligence before making investment decisions.