Alien Metals Limited (LSE:UFO) shares advanced on Thursday after it defined an ‘exploration target’ at its Hancock iron ore project, in the Pilbara region of Western Australia.
It estimates the target between 12 million and 27 million tonnes, with grades seen between 58% and 62%.
This target is on top off the project’s existing 8.4 million tonne resource, at 60% Fe.
“The Exploration Target at our Hancock Iron Ore Project is an outstanding result that further validates the scale and quality of this high-grade opportunity.
“The exploration target shows that the Hancock iron ore project could be materially larger than previously considered and positions Alien in a very strong commercial and technical position as we advance discussions with potential partners to develop this project.”
UFO also told investors that its Australian subsidiary has now executed an access agreement with BHP which clears the major miner’s previous objection and allows the tenement to proceed through the government approval process.
In London, Alien Metals shares gained 21% to trade at 0.1p, valuing the small-cap at just over £7 million.