Alien Metals Ltd (LON:UFO) said it has been granted a further extension under an exclusivity agreement to assess the potential acquisition of the Elizabeth Hill silver tailings project in Western Australia.
As part of its due diligence, the company commissioned a series of metallurgical and recovery tests on a 200kg bulk sample taken from across the tailings. Due to the continued high demand for testing done at the Perth laboratories, the company has been granted a 30-day extension to the exclusivity period to enable this study to be completed and interpreted.
“This extension will allow Alien to undertake further assessment over the potential retreatment and recovery of the silver tailings as discussions continue regarding the potential acquisition of the project,” it said.
Alien announced on March 10 that it had entered into a 60-day exclusivity agreement over the tailings project with owner Wombat Resources Pty Ltd and on May 26 it reported a 45-day extension.
"We are thankful to the Wombat Resources team for this additional extension to the exclusivity agreement on this project without further cost, and are pleased that they understand the current delays being encountered at the labs due to the overwhelming demand stemming from significant mining activity in Western Australia,” said Bill Brodie Good, chief executive of Alien Metals.
"The ALS laboratory in Perth has commenced a detailed suite of metallurgical and recovery tests on the larger bulk sample we took earlier in the year,” he said.
Initial results from test leaching at the project showed high levels of silver recovery.