Alien Metals Ltd (AIM: UFO), a prominent minerals exploration and development company, has recently announced the results of its Development Study for the Hancock Iron Ore Project located in the Pilbara Region of Western Australia. The study, a collaborative effort with Mining Plus Pty Ltd, Burnt Shirt Pty Ltd, and internal UFO personnel, highlights the project’s exceptional economics and prospectivity, underscoring extensive untested mineralisation trends based on an updated JORC Mineral Resource Estimate (MRE) of 8.4Mt at 60% Fe.

The Hancock Project, boasting an 8Mt mining inventory conversion, showcases robust financials including an average annualised EBITDA of A$39m, a pre-tax NPV10 of A$146m, and a remarkable pre-tax IRR of 133%. With an all-in sustaining cost of US$85/t and a production rate of 1.25mtpa, the project’s initial development capital cost stands at A$28m, promising substantial returns.

The development study further solidifies confidence in capital and operational costs, highlighting the project’s low start-up cost of A$28m, inclusive of significant infrastructure and contingency allowances. The proximity to the mining hub of Newman and secured provisional export capacity through the Port of Port Hedland accentuates the project’s logistical advantages and potential for rapid development.

An independent review by CSA Global and additional internal analyses underscore the Hancock Project’s significant exploration potential beyond the current 8.4Mt Mineral Resource. These findings suggest considerable opportunities for expanding the resource base through further exploration, potentially enhancing production volumes and extending mine life.

Alwyn Vorster, Non-Executive Chair of Alien Metals, emphasized the project’s de-risking and the promising outlook for the global iron ore industry, highlighting the Hancock Project’s role in delivering shareholder value through sustainable operational costs and exploration upside.

With development approvals on track for mid-2024 and exploration activities set to increase the mineral resource, Alien Metals is poised for a bright future. The company’s strategic focus on expanding its resource base while advancing development activities underscores its commitment to growth and value creation in the iron ore sector.

  Alien Metals, Alwyn Vorster, Australia, Hancock Iron Ore Project, iron ore, Pilbara region, Western Australia