TIDMUFO
RNS Number : 1945I
Alien Metals Limited
03 August 2023
Trading Symbols
AIM: UFO
FWB: I3A1
3 August 2023
Alien Metals Ltd
("Alien" or "the Company")
Commencement of Definitive Feasibility Study for Hancock
Project
Alien Metals Ltd (LSE AIM:UFO), a global minerals exploration
and development company, is pleased to announce that its
wholly-owned subsidiary Iron Ore Company of Australia Pty Ltd
("IOCA") has commenced works on the Definitive Feasibility Study
("DFS") for the Company's Hancock Iron Ore Project ("Hancock
Project") located within Western Australia.
Highlights
-- The DFS will optimise the mine plan, infrastructure layouts,
the final capital and operating cost estimates for the Project.
-- The Company has engaged Mining Plus, a globally recognised
engineering and consulting firm to be the lead consultant on the
DFS.
-- Since the Scoping Study (see press release 19 October 2021)
was delivered, the IOCA team has made significant progress in
advancing the project towards production, which includes delivery
of maiden resources and reserves, acquisitions of additional tenure
to support expansion, securing infrastructure (port and road)
access and development of finance and offtake discussions.
-- Progressed the required regulatory approvals for the project,
which includes ongoing discussion with the Native Title Holders and
completing the required Fauna, Flora and Vegetation studies to
support the Environmental application.
-- The Company will work with Mining Plus over the coming months
to deliver the DFS Study. This study will include a detailed
workstream on the current approvals timeline that supports Hancock
Construction and Operational development. At this stage the Company
anticipates, subject to a reasonable timeframe to secure the
required approvals (which includes Part IV approvals) as planned,
operation of the Hancock Project will now commence during 2024.
Troy Whittaker, Chief Executive Officer commented :
"Selection of Mining Plus to conclude the Company's Definitive
Feasibility Study for the Hancock Project is a significant
milestone for the Company and its shareholders. Over the past month
the Company has been focused on de risking the project through the
delivery of the mining inventory and reserves and capital and
operations costings to support bankable levels of Project
definition.
"The provision of the DFS in the coming months will see the
Hancock Project positioned to swiftly move through and conclude the
funding and offtake requirements that will lead to the Company's
Final Investment Decision in the latter part of this year as the
final regulatory approvals process continues to progress."
Further Information
Figure 1: Location of the Company's Iron Ore Projects, Western
Australia
-- Mining Plus have proven expertise across base metals and
specifically in Iron Ore Projects within Western Australia.
-- Mining Plus were commission by the Company during 2021 and
delivered the initial Scoping Study for the Hancock Project in
October 2021.
-- Significant progress has been made since the Scoping Study
was delivered with highlights that include:
o Delivered Maiden Ore Reserves (see press release 26 April
2023) of:
-- Ore Reserve 1.9 million tonnes ("Mt") @ 60.2% iron ("Fe"), and
-- Mining Inventory 4.2Mt @ 60.5% Fe (inclusive of Ore Reserves).
o Delivered an Updated JORC Mineral Resource Estimate ("MRE")
(see press release 26 April 2023) using a 58% Fe cut-off grade:
-- Indicated Resource 1.7Mt @ 61.0% Fe, and
-- Inferred Resource 7.4Mt @ 60.1% Fe.
-- Global Resource 9.1Mt @ 60.3% Fe.
o Completed the acquisition of Mallina Exploration Pty Ltd (see
press release 5 May 2023) which provides direct strategic access to
the Great Northern Highway and expands the total strategic
landholding of over 75.6 square kilometres ("km (2) ") (7565
hectares) in an iron ore rich area.
o Completed further Resource Definition Drilling at the Sirius
Extension deposit (see press release 20 July 2023) targeting
increases to Ore Reserves. The initial tranche of assay results
received included highlights of:
Drill Hole 23IHD003
-- 26.9 metres ("m") @ 60.03% Fe from 13.9m including a high
grade intercept of 12m @ 61.2% Fe from 28.8m, and
-- 16.1m @ 59.75% Fe from 46.9m including a high grade intercept
of 9.9m @ 61.03% Fe.
o Drill Hole 23IHD006
-- 49.0m @ 59.29% Fe from 14.0m including high grade intercepts
of 8m @ 60.70% Fe from 17m, 9.0m @ 61.51% Fe from 36.0m and 12.0m @
60.58% Fe from 51.0m.
Figure 2: Hancock Project Location, Pilbara Region, Western
Australia
Figure 3: Interpreted bedrock geology across the Hancock
Project
Hancock Project Reserves and Resources (see press release 26
April 2023)
Table 3 - Hancock Project Ore Reserves
Material Tonnes Volume Fe % SiO Al 2 P % LOI Mn %
(Mwmt) (Mbcm) 2 % O 3 % %
Proved
-------- -------- ------ ----- ------- ----- ----- -----
Probable 1.9 0.7 60.16 5.69 3.54 0.12 3.85 0.02
-------- -------- ------ ----- ------- ----- ----- -----
Total 1.9 0.7 60.16 5.69 3.54 0.12 3.85 0.02
-------- -------- ------ ----- ------- ----- ----- -----
Table 4 - Hancock Mining Inventory
Material Tonnes Volume Fe % SiO Al 2 P % LOI Mn %
(Mwmt) (Mbcm) 2 % O 3 % %
Unclassified 4.2 1.6 60.51 4.11 3.53 0.15 4.74 0.04
-------- -------- ------ ----- ------- ----- ----- -----
Total 4.2 1.6 60.51 4.11 3.53 0.15 4.74 0.04
-------- -------- ------ ----- ------- ----- ----- -----
Table 5 - Mineral Resource
Classification Prospect Mass Average Value
Category (million
tonnes)
Fe % SiO Al 2 P % LOI Mn %
2 % O 3 % %
----- ----- ------- ----- ---- -----
Indicated Sirius Extension
------------------ ---------- ----- ----- ------- ----- ---- -----
Ridge C 0.7 60.9 4.9 3.27 0.12 3.7 0.03
----------------------------------- ---------- ----- ----- ------- ----- ---- -----
Ridge E 1.0 61.0 5.2 3.30 0.12 3.4 0.02
----------------------------------- ---------- ----- ----- ------- ----- ---- -----
Sub Total - Indicated 1.7 61.0 5.1 3.29 0.12 3.5 0.02
---------- ----- ----- ------- ----- ---- -----
Inferred Sirius Extension 6.7 60.1 4.1 3.71 0.17 5.2 0.05
------------------ ---------- ----- ----- ------- ----- ---- -----
Ridge C 0.4 60.8 4.6 3.07 0.14 4.4 0.03
----------------------------------- ---------- ----- ----- ------- ----- ---- -----
Ridge E 0.3 59.8 4.9 3.64 0.17 5.0 0.03
----------------------------------- ---------- ----- ----- ------- ----- ---- -----
Sub Total - Inferred 7.4 60.1 4.2 3.67 0.17 5.2 0.05
---------- ----- ----- ------- ----- ---- -----
Total 9.1 60.3 4.3 3.60 0.16 4.9 0.04
---------- ----- ----- ------- ----- ---- -----
As announced on 24 August 2022, as part of the revised agreement
for Alien to acquire 90% of Hamersley Iron Ore Project, the Company
agreed to pay Windfield a Performance Payment if within 60 months
of executing the Option Agreement, Alien disposes of its interest
in the project, an IPO or spin out of the project occurs or a
decision to mine is taken. Noting the revised timeline above and
the potential decision to mine being made, the Company continues to
negotiate with Windfield on an agreed valuation basis for this
payment. A further update will be made once this is agreed.
Competent Persons Statements
The information in this announcement relating to Ore Reserves is
based on information compiled by Mr Jeremy Peters, a Director of
Burnt Shirt Pty Ltd, a Fellow of The Australian Institute of Mining
and Metallurgy (AUSIMM) and Chartered Professional Geologist and
Mining Engineer of that organisation who has sufficient experience
which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity that he is
undertaking, to qualify as Competent Person as defined in the 2012
Edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves". Mr. Peters consents
to the inclusion in the document of the information in the form and
context in which it appears.
The information in this announcement that relates to the Hancock
Mineral Resources is based on information compiled by Mr Howard
Baker, a Competent Person who is a Fellow of the Australasian
Institute of Mining and Metallurgy and is employee by Baker
Geological Services Ltd. Mr Baker has sufficient experience
relevant to the style of mineralisation and type of deposit under
consideration and to the activity which they are undertaking to
qualify as a Competent Person as defined in the 2012 edition of the
Australasian Code for the Reporting of Exploration Results, Mineral
Resources, and Ore Reserves (JORC Code). Mr Baker consents to the
disclosure of information in this report in the form and context in
which it appears.
The information in this announcement that relates to Exploration
Results, is based on information compiled by Mr. Bradley Toms who
is the Exploration Manager and a full time employee of Alien Metals
Ltd. Mr. Toms is a Member of The Australian Institute of
Geoscientists and has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration
and to the activity that he is undertaking, to qualify as Competent
Person as defined in the 2012 Edition of the "Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves". Mr. Toms consents to the inclusion in the document of
the information in the form and context in which it appears. Mr
Toms has declared that he holds Performance Rights in the
Company.
For further information please visit the Company's website at
www.alienmetals.uk , or contact:
Beaumont Cornish Limited (Nomad)
James Biddle / Roland Cornish Tel: +44 (0) 207 628 3396
WH Ireland Ltd (Joint Broker)
Harry Ansell / Katy Mitchell Tel +44 (0) 207 220 1666
BlytheRay (Financial PR)
Tim Blythe / Megan Ray / Said Izagaren Tel: +44 (0) 20 7138
3204
Notes to Editors:
Alien Metals Ltd is a mining exploration and development Company
listed on the AIM market of the London Stock Exchange (LSE: UFO).
The Company's focus is on delivering a profitable, long life direct
shipping iron ore operation based out of the Pilbara in Western
Australia. In 2019, the Company acquired 51% of the Brockman and
Hancock Ranges high-grade (Direct Shipping Ore) iron ore projects
and in December 2022 moved to 90% legal and beneficial ownership.
The Company also acquired 100% of the Vivash Gorge Iron Ore project
in the west Pilbara in July 2022.
The Company acquired 100% of the Elizabeth Hill Silver Project,
which consists of the Elizabeth Hill Historic Mining Lease and the
115km(2) exploration tenement around the mine.
In March 2022 the Company acquired 100% of the former joint
venture interest in the Munni Munni Platinum Group Metals and Gold
Project in the West Pilbara, Western Australia, one of Australia's
major underexplored PGE and base metals projects. Munni Munni holds
a historic deposit containing 2.2Moz 4E PGM: Palladium, Platinum,
Gold, Rhodium.
In May 2023, the Company acquired 100% of Mallina Exploration
Pty Ltd and with it, the Western Hancock Tenement. The new tenement
adjoins the Company's existing Hancock tenement, giving the entire
Hancock project direct access to the Great Northern Highway.
The Company also holds silver, copper and base metal projects in
various locations around the world however is currently looking at
the best way to divest these for the benefit of shareholders.
Glossary
Mineral Resource - A concentration or occurrence of solid or
liquid material of economic interest in or on the Earth's crust in
such form, grade (or quality), and quantity that there are
reasonable prospects for eventual economic extraction. The
location, quantity, grade (or quality), continuity and other
geological characteristics of a Mineral Resource are known,
estimated or interpreted from specific geological evidence and
knowledge, including sampling. Mineral Resources are sub-divided,
in order of increasing geological confidence, into Inferred,
Indicated and Measured categories.
DSO - Direct Shipping Ore
Fe - Iron
Al - Aluminium
Ca - Calcium
K - Potassium
Mg - Magnesium
Mn - Manganese
Na - Sodium
P - Phosphorus
S - Sulphur
Si2O3 - Silica
Mt - Million Tonnes
BIF - Banded Iron Formation
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