Alien Metals acquires two iron ore licences in Western Australia
announced on Friday they entered an option agreement to acquire a 51% interest in two exploration licences in two iron ore projects in the Pilbara region of Western Australia.
The company said that historic exploration undertaken by mining majors demonstrated high-grade, Direct Shipping Ore iron ore potential.
The Hancock Ranges Iron Ore Project has a JORC inferred and indicated mineral resource estimate of 124MT @ 60.32% Iron, with one historic drill hole returning 126m @ 60.28% Fe from surface.
The Brockman Iron Ore Project contains part of the historic BHP deposit 20, with surface sample grades averaging 62% Fe, and is dominated by the Brockman Iron Formation, which hosts nearby commercial operations, the company said.
Shares in Alien Metals shot up 28% following the news
Dan Smith, Chairman of Alien said it was an “extremely exciting opportunity for the Company”.
He said in an official statement: “Over the last 6 months the Board has been reviewing a range of potential opportunities and these projects are surrounded by major iron ore mines owned by global mining companies and there has already been significant interest in these projects given their prospectivity and resurging iron ore price.”
He added: “These iron ore licences are in the heart of the most prolific iron ore region in the world, with first class transport links and associated infrastructure.”
Mr. Smith highlighted that iron ore focused companies have delivered significant returns to investors this year, and fieldwork is expected to begin in the fourth quarter of 2019.
This is a significant step as part of Alien Metal’s strategy to find licenses in global jurisdictions with established infrastructure and mining codes, and unlock the development upside.
Western Australia is the largest iron ore producer and exporter in the world with production of around 800 million tonnes of DSO dominated by Rio Tinto, BHP and Fortescue Metals.
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