Australia

Alien Metals builds its silver position around Elizabeth Hill, adding to the huge upside thats already in place

Shares in Alien Metals Ltd (LON:UFO) jumped by more than 6% in morning trade after the company announced that had added more than 100 square kilometres of ground to its already highly prospective Elizabeth Hill silver project in Western Australia.

The company completed its acquisition of Elizabeth Hill on 25 September, and has moved swiftly to consolidate its landholding in an area known to be highly prospective for several different metals.

The new ground is thought to contain as much as three million ounces of unmined silver relatively near to the surface, with further potential at depth.

Its also highly prospective for copper and zinc, and contains structures that are linked to the two million ounce Munni Munni platinum and palladium project across the tenement line.

As such, its a pretty good addition to an already highly attractive portfolio and represents the kind of sure-footed deal-making Alien has been able to pull off ever since the new management took over last year.

Its no coincidence either that as the prospectivity of the portfolio has improved – with favoured metals like silver and iron ore playing a prominent role – the companys market capitalisation has also jumped.

Investors warmed to the can-do attitude of Alien as soon as the first of the new deals began coming, but it wasnt until the silver price really took off in the early summer of this year that it really became clear how much value there might be inside the company.

The shares have gone up by almost seven times since the early part of July, even as the silver price has jumped somewhat more moderately, from around US$12.00 per ounce in March to the current price of just under US$23.00.

Amazing what a bit of momentum can do.

But the market isnt just trading on sentiment alone. There are real hard numbers to digest too. At Elizabeth Hill theres already a track record of historic production, with grades running at almost 2,200 grams per tonne. Given that silver can be economic at as low as 300 grams per tonne in certain circumstances, theres clearly a huge amount of room for manoeuvre and margin here.

Whats more, back-of-the-envelope calculations value the silver in the ground at tRead More – Source