Alien Metals upbeat on latest results from Hancock

Minerals exploration and development company Alien Metals updated the market on the Hancock iron ore project in the Pilbara region of Western Australia on Wednesday, reporting that initial assay results from the second phase of reverse circulation (RC) resource drilling demonstrated “significant” widths of direct shipping ore-grade intersections from surface at the Sirius extension project

The AIM-traded firm said all intersections from the Sirius project “clearly” pointed to a contiguous direct shipping ore (DSO)-grade deposit.

It said the best initial results from the second phase drill programme included 47 metres at 61.5% iron in hole AM21RC002 001 from two metres, 78 metres at 61.2% iron in hole AM21RC002 002 from one metre, and 25 metres at 61.5% iron in hole AM21RC002 003 from surface.

It also highlighted 88 metres at 60.6% iron in hole AM21RC002 004 from one metre, 29 metres at 59.6% iron in hole AM21RC002 005 from 12 metres, 19 metres at 59.3% iron in hole AM21RC002 006 from 15 metres, and 68 metres at 58.5% iron in hole AM21RC002 007 from 11 metres.

Alien said that, with the continued “strong” results from the Sirius extension project, maiden resource estimation work and mining studies had begun, with initial results expected in the September quarter.

Further drilling at the Western Ridges project was being planned as a third phase programme, with management expecting that to deliver a zone to contain a potential second resource.

The second phase of drilling was designed to in-fill the maiden drilling at the Sirius project, and the firm said it was now confident that the current drill spacing was sufficient to enable the delineation of a maiden JORC resource to be calculated.

It said the laboratory results received to-date had further confirmed the excellent potential of the Sirius prospect.

“Our Hancock iron ore project is shaping up to be a significant development opportunity for Alien,” said chief executive officer and technical director Bill Brodie Good.

“We have now defined DSO-grade iron ore over a strike length of 350 metres at the Sirius extension prospect alone, and we now have nearly all the data to calculate a maiden JORC resource at Sirius.

“In parallel to this work, the company has already engaged specialist mining consultants, Mining Plus, to deliver a high level scoping study for the Sirius extension prospect.”

Brodie Good said Mining Plus had “extensive experience” with similar DSO-grade projects that had recently transitioned from explorer to producer in Western Australia, providing “valuable data” as a benchmark for Alien and “robustness” to its financial model, even at the current, preliminary stage.

“Alien is highly encouraged by the early review work and looks forward to providing an update in due course.

“In addition to the Sirius extension project and the yet-to-be-resource drilled Western Ridges, significant potential still remains at Hancock, with only 15% of the tenement tested to date.”

At 1418 BST, shares in Alien Metals were up 0.48% at 0.83p.