Alien Metals confirms significant direct shipping iron ore mineralisation at Hamersley
The minerals exploration and development company initiated the second phase of drilling on the Hancock Licence at Hamersley last week following the recently completed maiden drilling program. Results from which the group described to investors as “excellent”.
Alien also informed investors at the time that it had received the final set of drilling results from the program and that it was in the process of a final review and interpretation.
The drilling program, which included a total of 53 Reverse Circulation (“RC”) holes from 3,350m of shallow drilling across its priority High-Grade Direct Shipping Ore (“DSO”) targets, has confirmed four high grade Direct Shipping Ore (“DSO”) mineralisation prospects.
As part of the program, three main target areas were drilled, including the Sirius Extension prospect, which adjoins the Sirius iron ore project held by iron ore group, Brockman Mining.
Figure 1: Location of the Brockman and Hancock Ranges Iron Ore projects within the prolific iron ore producing region of the Pilbara.
(Source: Alien Metals)
Alien, which described the results as ‘significant’, said the remaining assays have confirmed the “significant potential” of the Sirius Extension prospect. The significant DSO results include 103m at 61.5% of iron from 2m depth ending in ore to 73m at 59.5% iron from 6m.
Amongst these significant intersections, the results of the drilling campaign have confirmed an initial strike of DSO bearing iron ore of at least 300m, with the ongoing follow-up RC program being aimed to infill previous drilling and to test strike and depth extensions.
A fourth area was also identified in the southern central area and two holes were drilled to initially test this at the end of this maiden drilling program as per Figure 2 below.
Figure 2: Drill hole locations, Targets and Prospects, Hancock Tenement, Hamersley Iron Ore Project, April 2021
(Source: Alien Metals)
At the new ridge targets, Hole AM21RC001 019 intersected two thinner DSO beds 2m at 61.54% iron from 14m and 5m at 55.0% iron from 3m. Meanwhile, the Ridge E DSO prospect identified a significant intersection of 12m @ 60.5% iron from 4m, a separate DSO zone.
Alien told investors that this maiden program has enabled the group to better understand the potential and the follow up targeting criteria to maximise all future programs.
Bill Brodie Good, CEO & Technical Director of said: “The remaining assays confirmed the significant potential of the Sirius Extension prospect, as well as the potential of the wider licence area.”
In particular, he stated the DSO results from hole 48 along with the “significant intersection” at hole 27 are “excellent results that bode well for the potential of this prospect.”
He added, “In addition to the known DSO grade iron ore at the Sirius Extension prospect, the focus with the follow-up program is to prove up the DSO potential across the other prospect areas using surface mapping and sampling to study the untested areas of the tenement we believe to have even more potential.”
Alien’s second phase of drilling which is ’progressing well’ with roughly 130m drilled to date should enable the company to generate a maiden resource on the Hancock Project, it said.
Figure 3: Drill hole locations with DSO intercepts, Western Ridges and Kalgan Prospects, Hancock Tenement, Hamersley Iron Ore Project, June 2021
(Source:Alien Metals)
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In recent weeks, Alien has received ‘encouraging’ initial results from its drilling program at the Hancock Iron Ore project, widening its understanding of the mineralisation of the area.
Today’s news also follows Alien’s recent execution of a conditional Share Sale Agreement which increased its effective interest in the Hamersley Iron Ore Direct Shipping Ore Project.
With Alien having acquired a more meaningful stake in the Hamersley project (from 51% interest to over 90%) in addition to the continued high price of iron ore and high demand Alien said it expects to drive Hamersley forward while continuing to deal with the necessary paperwork for maiden drilling on the highly prospective Brockman Licence further west.
Iron ore prices have risen to record highs with expectations building that benchmark prices could get to $200 a tonne which would beat the $194 hit more than a decade ago. As a result of the prices, Alien believes its iron ore projects will deliver significant value.
Reasons to Follow UFO
UFO’s portfolio of exploration stage assets includes volcanogenic massive sulphide style mineralisation (copper, zinc and lead), high-grade silver projects in Mexico and a 51% interest in two highly prospective iron ore projects in the Pilbara region in Australia.
The company said its portfolio may be expanded to include other minerals such as iron ore and lithium, and jurisdictions within Africa and Asia where its management has demonstrable expertise advancing assets in line with international reporting standards.
Expanding Licence Areas
In recent weeks, the company was granted a 208 km2 exploration licence by Ironbark Zinc surrounding the Citronen zinc-lead project, a high-grade metal project located in northern Greenland which is believed to be one of the world's largest undeveloped zinc-lead projects.
The minerals exploration and development company said the project holds a JORC resource of 131.1m tonnes @ 4.5% zinc and lead for 13bn pounds of contained zinc and lead metal.
The licence is valid until 31 December 2023 and continues UFO’s strategy of identifying counter-cyclical opportunities in first class mining jurisdictions with ‘excellent upside potential.’
"The Company and its advisers continue to assess new projects and identified an opportunity to secure an exploration footprint in northern Greenland on strike and adjacent to the world class undeveloped Citronen zinc-lead project,” said CEO, Bill Brodie Good.
IBK believes the projects offer an attractive entry into one of the world's premier silver belts and will soon start marketing them to a range of potential investors and project partners.
UFO said it will continue its efforts in exploring and developing the projects and simultaneously consider third party funding options to develop and mine the projects.
In other recent news, the company has also recently completed a detailed geological mapping and sampling programme at the Hamersley iron ore projects in Australia with field observations indicating that two of its prospects may be part of the same larger system.
The two projects, which have demonstrated “great potential” are located in the Hamersley Province which is known as one of the premier iron ore producing regions of the world.
Preliminary handheld XRF results are consistent with those observed in the 2019 field programme, with reported ranges of between 40% and 70% iron.
Alien Metals has now commenced preparing a Program of Works ("POW") for submission ahead of drilling.
Meanwhile, North American advisor firm IBK Capital has commenced the marketing process for the Company's San Celso and Los Campos silver projects which are located in Mexico.
The process for the silver projects follows the successful earn-in transaction with Capstone Mining announced earlier in October 2020 regarding UFO’s Donovan 2 copper-gold project.
Complementary Acquisitions
Alien Metals has executed an acquisition-led strategy headed by a high-quality geological team to build a strong portfolio of diversified assets including two recent acquisitions in 2019
These include the Brockman and Hancock Ranges high-grade iron ore projects and the Elizabeth Hill Silver projects both located in the Pilbara region, Western Australia.
In addition to progressing its portfolio of assets and following its strategic review of its portfolio of silver and precious metals projects in Mexico, Alien Metals has identified priority exploration targets within its 9 mining concessions which it is working to advance systematically.
The Company’s silver projects are located in the Zacatecas State, Mexico’s largest silver producing state which produced over 190m oz of silver in 2018 alone accounting for 45% of the total silver production of Mexico for that year.
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