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Alien Metals partner kicks off Donovan project survey

"The company is extremely encouraged by the speed of progress by the excellent Capstone technical team," said chief executive Bill Brodie Good

Alien Metals Ltd - Alien Metals partner kicks off Donovan project survey

Alien Metals Ltd (LON:UFO) has told investors that a detailed survey has begun for the Donovan 2 copper-gold project in Mexico.

Capstone Mining (TSE:CS), which is earning into the project, has commissioned a detailed close-spaced surface Induced Polarisation (IP) geophysical survey across the majority of the tenement.

The aim is to add detail to the project’s northern anomaly and to extend historic geophysical work undertaken by Alien.

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"The company is extremely encouraged by the speed of progress by the excellent Capstone technical team to push ahead quickly on exploration of the project,” said Bill Brodie Good, Alien chief executive in a statement.

“While knowing that Alien had planned to do a maiden drilling program Capstone considered that commissioning a more detailed ground IP survey to compliment historic work done by Alien while awaiting the necessary drill permitting would refine or reaffirm the existing drill targets.

"Capstone is managing the main elements of the program while Alien provide the necessary early stage on the ground support and help as required and we are looking forward to some enhanced results from this work," he added.

Brad Mercer, Capstone’s SVP of operations and exploration, added: “We review many business opportunities every year but very few meet our high criteria. Donovan 2 has the potential to be a high grade, near-surface deposit in a world-class mining district.

“Capstone and Alien are fully aligned on an early-stage plan and we look forward to exploring Donovan-2 together."   

In October, Alien agreed the earn-out deal to Capstone which takes a 65% stake through a cash payment of US$290,000 to Alien over three years plus US$3.6mln of exploration expenditure. This stake can rise to 75% through a further cash payment of US$200,000 and funding for a preliminary economic assessment and up to 80% for full funding of the PFS.

Alien noted the deal allows for the immediate advancement of the Donovan 2 Copper-Gold project while leaving it free to focus on exploration. 

Quick facts: Alien Metals Ltd

Price: 1.1 GBX

LSE:UFO
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Market Cap: £37.63 m
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