Alien Metals (LON: UFO) shares are gaining on Wednesday after the company said that the Hancock Iron Ore Project is “firming up as standalone DSO operation.”
Initial assay results from the second phase of Reverse Circulation (RC) resource drilling have demonstrated significant widths of direct shipping ore (DSO) grade intersections from the surface at the Sirius Extension Project.
UFO said that all intersections from the Sirius Extension Project clearly point to a contiguous DSO grade deposit. The best initial results from the second phase drill program included: 47m at 61.5% iron, 78m at 61.2% iron, and 25m at 61.5% iron.
Maiden resource estimation work and mining studies have commenced with initial results anticipated in Q3.
Further drilling at the Western Ridges Project is being planned as a third phase program, with management expecting it will deliver a zone containing a potential second resource.
Bill Brodie Good, CEO & Technical Director of Alien Metals, commented: “Our Hancock Iron Ore Project is shaping up to be a significant development opportunity for Alien. 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.”
“In parallel to this work the Company has already engaged specialisist mining consultants, Mining Plus, to deliver a high level scoping study for the Sirius Extension prospect. Mining Plus has extensive experience with similar DSO grade projects that have recently transitioned from explorer to producer in Western Australia; this provides valuable data as a benchmark for Alien and will provide robustness to the financial model, even at this preliminary stage. Alien is highly encouraged by the early review work and looks forward to providing an update in due course.”
Alien Metals' share price is currently trading at 0.85p, up 3%. It initially climbed to 0.949p earlier in the session.
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