REG - Alien Metals Limited - Ongoing Development towards Mining at Hancock

Alien MetalsAnnouncement

01/06/2022 07:16

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RNS Number : 5385N  Alien Metals Limited  01 June 2022

 

 

Trading Symbols

AIM: UFO

FWB: I3A1

1 June 2022

Alien Metals Ltd

("Alien" or "the Company")

 

Ongoing Development towards Mining of the Hancock Iron Ore Project

 

Follow the link to view the announcement in full, including all figures:

http://www.rns-pdf.londonstockexchange.com/rns/5385N_1-2022-6-1.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5385N_1-2022-6-1.pdf)

 

Alien Metals Ltd (LSE AIM:UFO), a global minerals exploration and development
company, is pleased to update the market on the Company's progress regarding
the Hancock Iron Ore Project and first production commencing in 2023.

 

Highlights:

·    Metallurgical test work programme completed and flow sheet finalised

o  Results further highlight the high-grade and low impurity nature of the
Hancock deposit

·    Due to the ratio of fines to lumps and low impurities of the DSO
material at Hancock, Alien is in advanced discussions with potential offtake
partners. These discussions have led to the delivery of marketing samples

·    The Company is in preliminary discussions with a number of potential
funding partners

o  Alien has been presented with a range of funding options, both equity and
debt, to ensure optimum financing structure and minimal dilution

·    Engagement with key stakeholders during the development and mining
stages has commenced

·    Key approvals and permitting advancing on schedule, overseen by
experienced consultants, Greenvalues

 

 

Bill Brodie Good, Chief Executive Officer & Technical Director of Alien
Metals, commented: "The development aspects of the Hancock Iron Ore Project to
be shovel ready for early 2023 are progressing very well.  We are on track to
have all the permitting in place, and will soon be in a position to commence
mining next year. Additionally, in-depth discussions with third party
contractors and potential offtake partners to enable us to get into production
in 2023 are continuing".

 

The Company continues to advance the Hancock Project towards being mine ready
in early 2023. On 22 September 2021, the Company delivered a maiden JORC
compliant inferred Mineral Resource Estimate at Hancock of 10.4Mt @ 60.4% Fe.
The Company believes there is significant potential to grow the size of the
DSO grade resource at Hancock (see announcement dated 30 March 2022), with
three 1,400m+ long high grade targets on ridge F, and two targets on ridge G
of 900m and 600m. In addition, there remains ~6.5 kilometres of additional
ridges to test across the central and eastern areas of the project.

 

Table 1: Mineral Resource Statement, Hancock Iron Ore Project, Alien Metals,
September 2021

                  Target           Mass               Average Value

                                   (Million tonnes)
 Classification                    Fe                       SiO(2)  Al(2)O(3)  P     LOI  MnO

 Category
                                   %                        %       %          %     %    %
 Inferred        Sirius Extension  7.8                60.1  4.1     3.72       0.17  5.2  0.05
                 Ridge E           1.5                61.2  4.8     3.38       0.13  3.5  0.02
                 Ridge C           1.1                61.9  4.4     2.93       0.12  3.5  0.03
 Total                             10.4               60.4  4.2     3.6        0.16  4.8  0.04

 

 

Resource and Mine Planning

 

A 10cm vertical accuracy Digital Elevation Model (DEM) has been received along
with a 5cm vertical accuracy photo imagery dataset of the central area of the
tenement and the proposed haul road corridor. This provides the Company with
detailed topography that is being incorporated into the resource update, as
well as the technical planning and routing for the haul road. We expect this
will aid in further exploration work as the detail in the imagery makes
targeting high grade areas even more efficient.

 

Mining Plus Pty Ltd, in conjunction with IOCA's Geologist and Competent
Person, Howard Baker, are progressing an updated scoping study incorporating
the Ridge C and E resources, including updated JORC compliant pit shell, to
include the current phase 4 drilling programme and mine plan optimisation
work.

 

 

The Company's exploration team has re-mobilised to the site this month to
conduct the Phase 4 drilling campaign that will both continue to increase the
confidence and quantity of the existing JORC Resource whilst continuing to
expand the potential of the project.

 

Howard Baker, IOCA's Resource Geologist and Competent Person, completed a site
visit in May 2022. Following the visit of Mr Baker and Alien's CEO, the
Company believes there is further potential across the Hancock Project. More
detailed mapping will take place over the coming field season to further
increase confidence in both the resources and the new drill targeting.

 

Metallurgical Test Work

 

The Company is pleased to advise that the initial bulk metallurgical test work
conducted on the Hancock Project Ridge C, comprising 2.5 tonnes of excavated
bulk material, has been used to add detail to the process flow sheet for the
crushing and screening circuit designs once mining begins.

 

The test work was conducted using 2,563kg of bulk samples at the ALS
laboratory in Perth. The test work's success to date confirms the quality of
the iron ore to be produced from the resource area.

 

The test work produced a high-grade 'Fines' product with a nominal 10% lump
product yield. In terms of onsite processing, the vast majority of product
will be fines, meaning minimal processing will be required, resulting in lower
operating costs to prepare the product for shipment.

 

The final report is still awaited from ALS, but provisional results are highly
encouraging, with the key 62% Fe grade from preliminary results being reported
with associated low deleterious elements to confirm the excellent quality of
the material.

 

 

 

 

Offtake, Marketing and Funding

 

The ALS NATA Certified laboratory has prepared marketing samples from the Bulk
Sample of about 100Kg each, soon shipped to interested parties. This allows
potential buyers and offtake partners to do their own technical due diligence
on the product.

 

The Company is currently continuing discussions with several interested
potential offtake partners to support the development of the Hancock Project,
including options for funding to support the path to production and guaranteed
purchase of the product for a set period.

 

Engagement with Key Stakeholders

 

IOCA's development team continues to engage with all key stakeholders.

 

The Company continues to engage with the Pilbara Ports Authority for potential
access to the Utah Point Public User Facility at Port Hedland, Western
Australia. An initial meeting with the CEO of the Shire of East Pilbara to
update them on the project and understand the support that IOCA could offer in
the local community going forward recently took place. Alien will continue to
keep these parties updated on the Company's progress.

 

The Main Roads Department of Western Australia (MRWA) has recently approved
the concept design for the intersection of the Hancock Project's haul road and
the Great Northern Highway. This is a significant step, being a key aspect for
permitting to transport product to port. This is now significantly advanced,
allowing IOCA to proceed to a final intersection design.

 

 

Contractor Engagement

 

Early contractor engagement is continuing with civil construction, mining and
haulage contractors to optimise the likely CAPEX and OPEX for the project and
develop good working relationships with potential long-term partners. Due to
the quality of the product and its relative proximity to the port in
comparison to other projects in the area, the Company is receiving interest
from several highly experienced and competitive contractors, and continues to
discuss options that would suit the project development.

 

Pleasingly, provisional pricing from likely contracting partners continues to
be in line with the Scoping Study assumptions from October 2021.

 

The Company notes that the road transport of bulk materials, such as Iron Ore
and Manganese in this region to the Utah Point facility at Port Hedland, is
already a tried and tested method. From recent discussions, the Company
understands this will continue to be the case. This further reduces haulage
risks of the product to market, as well as providing more competitive options
for the haulage of the product to market.

 

Approvals and Permitting

 

Work continues on permitting and approvals, with the Company's target to
commence production and first ore stockpiling in early 2023.

 

All studies to support the permitting process are progressing well, including:

•             The seasonal Flora and Fauna Studies

•             Hydrogeological and Hydrological Study

•             Soil and Waste Characterisation Studies

 

The Heritage Agreement has been lodged with the Karlka Nyiyaparli Aboriginal
Corporation (KNAC), the Native Title representative group for the Nyiyaparli
People. The Company is progressing for heritage survey works to be completed
in the next quarter.

 

An initial Mining Lease area within the tenement has been surveyed, and an
application has been made. A Miscellaneous Licence application for the Haul
Road corridor is being finalised, and an application is in preparation.

 

Ongoing work

 

Planned activities from the IOCA development team during the September quarter
include:

•             Planned geotechnical ground assessment of access
road and intersection

•             Progress MRWA intersection design

•             Water bore drilling

•             Finalise crushing & screening plant flowsheet
design and plant selection

•             Finalise CAPEX and OPEX inputs, including pricing
for intersection, haul road, mining, haulage and site establishment

•             Secure offtake agreement and funding for early
works

•             Further resource drilling

•             Upgrade JORC Resource, including maiden measured
and/or indicated resources to support a maiden mining reserves

 

The Company looks forward to updating the market in the coming months on the
progress of the Hancock Project and continues to be on track to be shovel
ready in early 2023.

 

 

Figure 1: Location of Hancock Iron Ore Project, Western Australia

 

Figure 2: Location and results of rock chip sampling programme, Hancock Iron
Ore Project, Western Australia, March 2022

 

Figure 3: Wide flat lying depression DSO potential on Ridge H, May 2022

 

Figure 4: Utah Point Public User Facility, Port Hedland, Western Australia

 

Figure 5: Typical 'Quad' Road Train for bulk haulage to Port Hedland

 

 

For further information please visit the Company's website at
www.alienmetals.uk, or contact:

 

 

Alien Metals Limited

Bill Brodie Good, CEO & Technical Director

Tel: +44 (0) 203 811 2144

 

Beaumont Cornish Limited (Nomad)

James Biddle / Roland Cornish

www.beaumontcornish.com

Tel: +44 (0) 207 628 3396

 

Turner Pope Investments (TPI) Limited (Joint Broker)

Andrew Thacker / James Pope

Tel: +44 (0) 20 3657 0050

 

WH Ireland Ltd (Joint Broker)

Harry Ansell / Katy Mitchell

Tel +44 (0) 207 220 1666

 

Yellow Jersey PR (Financial PR)

Sarah Hollins / Annabel Atkins / James Lingfield

alienmetals@yellowjerseypr.com

Tel: +44 (0) 20 3004 9512

 

Competent Person

 

The information in the announcement which relates to Exploration Targets,
Exploration Results and the Scoping Study has been approved by Mr. Allen
Maynard, who is a Member of the Australian Institution of Geoscience ("AIG"),
a Corporate Member of the Australasian Institute of Mining & Metallurgy
("AusIMM") and independent consultant to the Company. Mr. Maynard is the
Director and Principal Geologists of Al Maynard & Associates Pty Ltd and
have over 40 continuous years of exploration and mining experience in a
variety of mineral deposit styles. Mr. Maynard has sufficient experience which
is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2021 Edition of the "Australasian Code for
reporting of Exploration Results, Exploration Targets, Mineral Resources and
Ore Reserves" (JORC Code). Mr. Maynard consents to inclusion in the
announcement of the matters based on this information in the form and context
in which it appears.

 

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
precious and base metal commodities, with its operations located in proven
mining jurisdictions. It has embarked upon an acquisition-led strategy headed
by a high-quality geological team to build a strong portfolio of diversified
assets. In 2019, the Company acquired 51% of the Brockman and Hancock Ranges
high-grade (Direct Shipping Ore) iron ore projects and with a conditional
agreement to increase its interest to 90% in May 2021 also being put in place.

The Company acquired 100% of the Elizabeth Hill Silver Project, which consists
of the Elizabeth Hill Historic Silver Mine Mining Lease and the 115km(2)
exploration tenement around the mine. The Company also holds two silver
projects, San Celso and Los Campos, located in Zacatecas State, Mexico,
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. The Company also holds a Copper Gold Project in the same region,
Donovan 2.

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, and Rhodium.

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.

 

Inferred Mineral Resource - that part of a Mineral Resource for which quantity
and grade (or

quality) are estimated on the basis of limited geological evidence and
sampling. Geological evidence

is sufficient to imply but not verify geological grade (or quality)
continuity. It is based on exploration,

sampling and testing information gathered through appropriate techniques from
locations such as

outcrops, trenches, pits, workings and drill holes. An inferred Mineral
Resource has a lower level of

confidence than that applying to an Indicated Mineral Resources and must not
be converted to an

Ore Reserve. It is reasonably expected that the majority of Inferred Mineral
Resources could be

upgraded to Indicated Mineral Resources with continued exploration.

 

Reverse Circulation Drilling - Often referred to as RC drilling, is a method
of drilling which uses dual

wall drill rods that consist of an outer drill rod with an inner tube. These
hollow inner tubes allow the

drill cuttings to be transported back to the surface in a continuous, steady
flow. Drill results using

this method with adequate QA/QC can be used in Mineral Resource Calculations

 

DSO - Direct Shipping Ore

Deleterious Elements - Elements that can be detrimental to the overall
product, such as

Phosphorus.

Green Iron Ore - High Grade > 60% Iron Ore needing lease processing for the
manufacture of steel

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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