WH Ireland hailed the potential of Alien Metals Ltd (AIM:UFO, OTC:ASLRF)’s Hancock Project in Western Australia after the latest drill results.
The broker believes Hancock could eventually develop to become a “low capital and operating cost” deposit at 62% iron.
Material that is greater than 60% iron is known as direct shipping ore, or DSO. It is described thus because it can be mined and transported directly for export without the need for a costly processing phase.
It is one of the most highly prized and sought-after bulk commodities.
At a US$100 per tonne of iron ore, Hancock could be “capable of providing significant cash flow to Alien”, said WHI. The spot price is currently around US$140 a tonne.
“The extension potential of these iron ore ridges suggests that resources of high-grade material can be enhanced and either the scale or potential mine life at Hancock increased,” the broker added.
Earlier, the mining exploration and development company reported on completed drills at the end of 2021 today, with high-grade assays found in several zones.
Shares in Alien Metals were down 1.02% in midday trading, changing hands at 0.0075p.