Alien Metals Ltd (LSE AIM:UFO), a global minerals exploration and development company, is pleased to deliver a maiden JORC compliant Mineral Reserve for the Company's flagship Hancock Iron Ore Project ("Hancock"), situated in the prolific iron ore producing region of the Pilbara, Western Australia.
Further, the Company is pleased to report further drill results from the Natalie Hill South prospect, Elizabeth Hill, Australia's highest grade silver deposit.
Hancock Iron Ore
· Maiden Ore Reserves of:
o Ore Reserve 1.9Mt @ 60.2% Fe and
o Mining Inventory 4.2Mt @ 60.5% Fe, inclusive of Reserves
· Updated JORC Mineral Resource Estimate ("MRE") (using a 58% cut off grade):
o Indicated Resource 1.7Mt @ 61.0% Fe, and
o Inferred Resource 7.4Mt @ 60.1% Fe
o Global Resource 9.1Mt @ 60.3% Fe
· Inaugural declaration of Indicated Mineral Resources of 1.7 million tonnes ("Mt") @ 61.0% Fe
· Confidence in project resource has increased with the inaugural Ore Reserves and Indicated Mineral Resources being defined
· 71% of the combined resource at Ridges C and E is now classified as Indicated Mineral Resource material
· Drilling is currently underway at Sirius Extension to deliver additional Mineral Resource and Ore Reserve upgrades as the Company approaches Financial Investment Decision (FID) for the Project
· Further potential to increase Hancock's mineral resource remains on unexplored ridges
· Commercial negotiations ongoing with preferred proponents for project material packages
· Offtake discussions progressing on schedule
· The Company's procurement efforts are on target to deliver ±US$10 million in CAPEX savings from the initial estimate of US$30 million in the Scoping Study
· Results from 22AMC007 indicate potential for new target PGE reefs in the area at Elizabeth Hill
· The headframe refurbishment works at the Elizabeth Hill mine site have been completed
Rod McIllree, Executive Chairman, commented:
"The updated JORC Mineral Resource and maiden Ore Reserve for the Hancock Project further confirms our confidence in the Project with its high grade, direct shipping quality iron ore. This, combined with the ongoing negotiation of commercial tenders for the material packages associated with the Hancock Project lays the strong economic foundations for project and operational execution. In the coming weeks, I look forward to sharing the outcomes of these negotiations with you as we finalise the pathway to operations.
"It is also exciting to see that this recent drilling has successfully intersected Judy's Reef, demonstrating the Company's understanding of potential expansions of the existing resource at and around the Munni Munni/Elizabeth Hill Area, but also, highlighting new targets of untested PGE reefs similar to that seen at the main Munni Munni complex. The geochemical and geological targeting model that the Company's geologists are working on will assist future drill programs to unlock the value at one of Australia's premier layered ultramafic complexes."
Summary - Hancock Project
The Company is pleased to report its significant Maiden Ore Reserve based upon an updated JORC MRE for the high grade, direct ship ore, Hancock Project.
JORC Mineral Resource Estimate 9.1Mt @ 60.3% Fe
JORC Probable Ore Reserve 1.9Mt @ 60.2% Fe
The Hancock Project is located 17 kilometres ("km") north of the regional iron ore mining hub of Newman, Western Australia. The geology of the area supports nearby world class iron ore mines and the Company has an opportunity to build on the current high confidence JORC compliant mineral resources and ore reserves to develop a long life, direct ship, high grade iron ore mine.