Alien Metals Ltd (LSE:UFO) (LSE:UFO) said the latest results from the Hancock iron ore project in the Pilbara region of Western Australia support the project’s potential of becoming a standalone direct shipping ore (DSO) producer.
Initial assay results from the second phase of drilling demonstrated significant widths of DSO-grade intersections from surface at the Sirius extension project.
All intersections from the Sirius project point to a contiguous DSO grade deposit with best initial results from the second phase of drilling including: 47 metres at 61.50% iron, 78 metres at 61.20% iron, and 88 metres at 60.60% iron.
"Our Hancock iron ore project is shaping up to be a significant development opportunity for Alien,” said chief executive Bill Brodie Good.
“We have now defined DSO grade iron ore over a strike length of 350 metres at the Sirius extension prospect alone and we now have nearly all the data to calculate a maiden JORC resource at Sirius."
Alien Metals has engaged specialist mining consultants, Mining Plus, to deliver a high-level scoping study for the Sirius extension prospect.
"Based on our conceptual study-level work to date, the Hancock project has the potential to be developed into a niche direct-shipping iron ore producer in the heart of the world-famous Pilbara region,” said John Battista, principal mining consultant at Mining Plus.
Initial results from the maiden resource estimation work and mining studies are anticipated in the September quarter.
"In addition to the Sirius extension project and the yet to be resource drilled Western Ridges, significant potential still remains at Hancock, with only 15% of the tenement tested to date," added Brodie Good.
Alien increased its stake in the Hancock project to 90% in May.