Alien Metals creates vehicle to fast track its iron ore projects
The Hamersley Iron Ore Project in Australia includes the Brockman iron ore project and the Hancock Iron Ore project where Alien has now recommenced a Phase 3 drilling programme.
Bill Brodie Good, Chief Executive Officer & Technical Director of Alien Metals, told investors this morning: "As part of the Company's commitment to fast track the iron ore projects, we have created a dedicated company, Iron Ore Company of Australia Pty Ltd (IOCA).”
The creation of IOCA follows a recent successful fundraising and an initial scoping study at Hancock from Mining Plus which added “invaluable confidence” to the iron ore project.
At Hancock, a reverse circulation (RC) drilling program totalling ~1,400 metres aimed to increase geological confidence in the existing JORC compliant Inferred Mineral Resource Estimate (MRE) of 10.4Mt @ 60.4% Fe has now commenced, Alien informed investors.
IOCA’s technical team is planning to potentially upgrade a portion of the Inferred resource to the Indicated category at the Ridge C and E deposits. The RC program is designed to also test extension mineralisation on the existing ridges as well as untested ridges to the south.
In addition to the RC drilling, a diamond drill rig is planned to drill up to 650m in 7 holes, to further support MRE confidence levels, as well as to provide material for detailed metallurgical and communitition testing as part of ongoing mining studies, the company explained.
Alien said handheld XRF readings are expected in the coming weeks from 60+ rock chip samples collected during recent field reconnaissance programs to add further confidence.
The company said “significant progress” has already been made by its Country Manager, Lloyd Edmunds, to open discussions on all the main development and operational fronts.
Edmunds is seeking discussions ‘to get some early but essential concepts and thoughts from some of the major companies in Australia already engaged in this type of work.’ Alien said this will allow IOCA to have as much information available from the early stage of development.
In addition, IOCA is also commencing discussions with potential offtake partners for its high grade iron ore products while Alien Metals said it is engaging early with the necessary government agencies to enable good and timely cooperation as the project develops.
IOCA said it is “encouraged” by the strong interest in higher grade iron ore projects as markets look to reduce their environmental footprints via utilising >60% of iron feedstock.
Brodie Good said the Group is pushing Hancock to be 'shovel ready' as soon as possible and that Alien Metals remains “extremely confident” about the prospects for its iron ore projects.
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Last week, Alien Metals entered into a binding agreement with Platina Resources to acquire its 30% joint venture interest in the Munni Munni Platinum Group Metals and Gold Project.
The total consideration for the project is A$2.23m, of which A$1.98m will be in Alien shares. The remaining 70% is owned by Artemis Resources, who are the operator of the joint venture.
Alien will also have a right of first refusal for the acquisition of the remaining interest held by Artemis in the Munni Munni Project, allowing Alien to move to 100% should Alien wish.
The Munni Munni project in the West Pilbara is adjacent to the Elizabeth Hill project, which hosts the potential for further significant silver, copper, nickel and PGE mineralisation. Munni covers four granted mining leases and one exploration lease, covering a combined 75.9 km2.
The project, which hosts the largest intrusion in the West Pilbara and is one of the largest undeveloped primary Platinum Group Elements (‘PGE’) Resources in Australia, is generally considered to be one of Australia’s largest PGE deposits, with in excess of A$20 million spent on the Project to date with various feasibilities studies undertaken in the last 20 plus years.
In recent weeks, the company reported ‘strong’ anomalies of copper, nickel and PGM mineralisation from trenching and rock chip sampling at the Elizabeth Hill project.
The minerals exploration and development firm said the results from initial trenching at the project which hosts the high-grade Elizabeth Hill Silver Mine included 26m @ 0.25% copper (Cu) and 0.2% of nickel (Ni); and 34m @ 0.1 % Cu, 0.17% Ni and 0.19 g/t palladium (Pd).
The Group said these results further validate its view that the Elizabeth Hill Project hosts the potential for a much larger mineralised (VMS-style) system along with the silver deposit. Alien plans to follow up with a field program to expand the knowledge and potential of these targets.
Earlier this month, Alien Metals unveiled that it had raised gross proceeds of around £3.5. It told investors that this will enable it to deliver its work programme over the next 6-12 months.
Specifically, Alien Metals has undertaken the £3.5m placing to progress its corporate and operational strategy, which includes progressing Phase 3 infill and extensional drilling on the Hancock Iron Ore Project and putting plans in place to move the project towards mining.
The funds will also aid ongoing exploration around the Elizabeth Hill Silver project, further exploration drilling in Mexico; early stage exploration on regional tenements including Munni Munni North and resource drilling at the Brockman Iron Ore Project and for working capital.
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