March 5, 2021
Alpha Exploration Announces Completion of Phase 2 Drilling at Anagulu Prospect and Closing of CAD$5 Million Financing
Alpha Exploration Ltd. (“Alpha”) is pleased to announce updates on its recently completed drilling program on the Anagulu gold-copper prospect, part of its 100% owned Kerkasha Project, in Eritrea, as well as closing of its recently completed private placement financing.
Drilling at Anagulu Gold-Copper Prospect
A seven-hole (Phase 2), diamond drilling program totaling 3,340-meters was carried out at Anagulu from November 17,2020 to January 20, 2021. The drilling tested an area around the Anagulu discovery drill hole AND-001 which in March 2020 reported a 52-meter intercept with an average grade of 2.33 g/t gold, 1.05% copper and 6.53 g/t silver. The purpose of the Phase 2 drilling at Anagulu was to test the deep coincident chargeability and resistivity anomalies identified beneath and around drill hole AND001 with an Induced Potential-Resistivity geophysical survey.
The Anagulu prospect is located on the southwest part of the large 1,028 km² Kerkasha Exploration license in southern Eritrea. It was discovered by Alpha Geologists while completing a property-wide regional soil sampling program in 2018. Localized soil and rock chip sampling verified strong gold and copper mineralization at surface with a strike length of approximately 2kms and several hundred meters wide. The results of the Phase 1 drilling at Anagulu between December 2018 and February 2020 included the impressive results from the first diamond drill hole AND-001 (“the discovery drill hole”) as well as several other drill holes in the same general location showing significant gold and copper mineralization.
Because of the strong association of the gold and copper mineralization at Anagulu with disseminated chalcopyrite (copper sulphide) and strong silica flooding, Alpha carried out an independent Induced Polarization and Resistivity geophysical survey in February and March 2020, over the prospect to help define the existing mineralisation to depth and identify new drill targets. The results showed several large and coincident chargeability and resistivity anomalies, from close to surface, to depths of approximately 300 meters (the depth extent of the survey). One of these anomalies extends for about 2kms directly beneath the elevated gold and copper values seen in soils and rock-chips at surface and includes the location of the discovery drill hole AND001. This and other nearby geophysical anomalies are interpreted as defining additional areas of potential gold and copper mineralization.
Drill core from the current drilling is being prepared for analysis and assays are expected later this month.
In December 2020 and January 2021, Alpha completed a non-brokered private placement financing (the “Private Placement”) of units of Alpha (“Units”) in multiple tranches at a price of CAD $0.90 per Units, for gross proceeds to Alpha of approximately CAD $5,000,000. Each Unit is comprised of one ordinary share (each, a “Share”) of Alpha and one-half of one Share purchase warrant (each, a “Warrant”). Each whole Warrant will entitle the holder to acquire on additional Share of Alpha at CAD $1.35 for the 24 months from the date of issuance. The gross proceeds of the Private Placement will be used to fund expenditures for the exploration of the Kerkasha Project in Eritrea, operating and administrative expenses, working capital and general corporate purposes. Alpha also announces that it intends to raise a further CAD$3million in March 2021.
Public Listing Transaction
On September 14, 2020 Alpha entered into an arrangement agreement with Baltic 1 Acquisition Corp (“Baltic”) whereby Alpha would merge with Baltic (a CPC company) and become trading on the TSX.V Exchange in December 2020. However, this arrangement was terminated by Baltic on November 3, 2020. Alpha’s objective is to become a publicly listed company as soon as possible and as a result is exploring other alternatives for a going public transaction at this time and will announce further details when available. There is no guarantee that the securities of Alpha will be listed on a stock exchange, and Alpha in no way makes any representation that its securities will be listed on a stock exchange by way of this press release.
For further information go to the Alpha Exploration webpage at www.alpha-exploration.com or please contact:
President and Chief Executive Officer
Alpha Exploration Ltd
Tel: +44 207 129 1148
This press release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or dissemination in the United States.
This press release does not constitute an offer to sell or solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Michael Hopley, a “Qualified Person” within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the technical information contained in this press release.
Forward Looking Information
Certain statements and information herein, including all statements that are not historical facts, contain
forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to: future financing efforts of Alpha, including amounts anticipated to be raised and timing of completion; the use of the proceeds from the Private Placement; preparation of drill core for analysis and timing of assays; further drilling on Alpha’s Anagulu gold-copper prospect, including the nature and timing of such drilling and the results therefrom; and Alpha’s consideration of going-public alternatives. Often, but not always, forward-looking statements or information can be identified by the use of words such as “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. With respect to forward-looking statements and information contained herein, Alpha has made numerous assumptions including among other things, assumptions about general business and economic conditions and the prices of gold and other minerals. The foregoing list of assumptions is not exhaustive. Although management of Alpha believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These factors include, but are not limited to: risks relating to Alpha’s financing efforts; risks associated with the business of Alpha given its limited operating history; business and economic conditions in the mining industry generally; the supply and demand for labour and other project inputs; changes in commodity prices; changes in interest and currency exchange rates; risks relating to inaccurate geological and engineering assumptions (including with respect to the tonnage, grade and recoverability of reserves and resources); risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters); risks relating to adverse weather conditions; political risk and social unrest; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting mining concessions); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to exploration activities; and other risk factors as detailed from time to time. Alpha does not undertake to update any forward-looking information, except in accordance with applicable securities laws.