Alien Metals (LSE:UFO) is increasing its exposure to high-grade silver through its 30% interest in the Elizabeth Hill Silver Project in Western Australia’s West Pilbara, alongside an 8.7% stake in joint venture partner West Coast Silver. While the company’s primary focus remains its Hancock iron ore development and broader Pilbara assets, the silver project is emerging as an additional value driver within its portfolio.
West Coast Silver has announced a maiden JORC-compliant mineral resource estimate at Elizabeth Hill of 2.79 million ounces of silver at an average grade of 617 g/t. The estimate includes both Indicated and Inferred categories above a 20 g/t cut-off grade. Located on an existing mining lease and still open along strike and at depth, the project ranks among the highest-grade silver deposits in Australia and offers Alien Metals meaningful exposure to future exploration upside, development potential, and economic assessment work.
Preliminary pit optimisation studies indicate viable prospects for eventual extraction through a relatively compact open-pit operation, capturing the majority of known mineralisation, including previously mined underground zones. With a large portion of the resource still classified as Inferred and further drilling planned across the wider tenement package, the initial estimate is viewed as a starting point that could materially expand over time and strengthen Alien’s long-term silver exposure.
From a financial standpoint, the company continues to face challenges, including no current revenue, ongoing losses, and negative free cash flow, although recent trends show some improvement in losses and cash burn alongside low debt levels. Market technicals appear more supportive, with the share price trading above key moving averages and a positive MACD signal, while valuation remains constrained by its loss-making position and absence of dividends.
More about Alien Metals Ltd
Alien Metals Ltd is an AIM-listed exploration and development company focused on advancing mining projects through technical progress and strategic partnerships. Its flagship asset is the 90%-owned Hancock Iron Ore Project in Western Australia’s Pilbara region, supported by a broader portfolio that includes iron ore, platinum group metals, and precious metal interests such as Munni Munni and Elizabeth Hill.
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