Alien Metals announced the completion of its metallurgical test work which produced an initial flow sheet of crushing and screening for its Hancock iron ore.
The metallurgical test work reportedly confirmed the Hancock product was of Direct Shipping Ore (DSO) grade, with Pilbara Fines product confirmed at a grade of 62.7% iron from the initial bulk sample from its Ridge C resource.
Alien Metals added that the product had very low impurities, consistent with excellent quality product including silica content at less than 4.1%, aluminium content at less than 2.7% and phosphorus content at less than 0.1%.
The test work also indicated a potential for a Lump yield which is capable of commanding a premium price over the fines above 62% iron.
The mining group said marketing samples had been prepared and were being dispatched to potential customers in a precursor to potential offtake agreements for their own internal testing.
“These results from the initial bulk sample on Ridge C are another significant positive step in the progress of the Hancock project further confirming the excellent quality of the product as well as providing a simple initial process flow sheet showing only simple crushing and screening is required prior to shipping, a key element in keeping Capex and Opex to a minimum thus minimising environmental and energy usages once in production,” said Alien Metals CEO and technical director Bill Brodie Good.
“Returning higher than 62% Fe with associated low grade deleterious materials from a 2.5 ton bulk sample provides even more confidence in the overall quality and grade of the resource at C and only spurs us on to maintain the development of the project.”
“With the DSO Grade Iron Ore price moving back up, the quality of this product continuing to be proven and the remaining large potential for more discoveries on the tenement we are looking forward to the future of this project.”
Alien Metals said it was motivated to advance its Hancock project by the recent rise of iron ore to $145 per ton at 62% Fines spot price, linked to better demand prospect in metals due to easing Covid-19 restrictions and stimulus for demand from China.
FY 2021 financial update
Alien Metals reported $13 million in total assets by the end of the year, with $6.4 million in cash reserves.
However, the mining group confirmed widened losses as it invested in its Hancock project and its new prospects in west Australia. Alien Metals mentioned an operating loss of $2.3 million from a loss of $1.2 million in 2020 linked to its acceleration of work at Hancock, which produced a maiden JORC resource.
The company mentioned total liabilities of $800,000 from $300,000 the last year.
Alien Metals commented that a share placing in November 2021 had secured it a strong funding position to progress its operations and examine future opportunities for portfolio expansion in acquisitions.
It currently has a solid portfolio of advanced exploration assets in western Australia and Mexico, and reported progress at its key Elizabeth Hill, Donovan 2 and Hamersley projects.