Alien Metals shares surged 22.3% to 0.8p in early morning trading on Wednesday, after the mining firm announced it was “on track” to begin iron ore production in Hancock next year.
Alien Metals confirmed the completion of its metallurgical test work programme and added that its flow sheet had been finalised, with the results highlighting the high-grade and low impurity nature of the Hancock resource.
The company reported that it was in advanced discussions with potential offtake partners as a result of the ratio of fines to lumps, and low impurities of direct shipping ore (DSO) material at the project.
Alien Metals mentioned that the discussions had led to the delivery of marketing samples.
The mining firm said it believed there was significant potential to grow the size of its DSO grade resource at its Hancock project, with three high grade targets at least 1,400km long on ridge F, and two targets on ridge G of 900m and 600m.
It delivered an initial maiden JORC compliant inferred Mineral Resource Estimate at Hancock of 10.4mt at 60.4% iron on 22 September 2021.
Alien Metals further drew attention to the 6.5km of additional ridges to test along the central and eastern regions of the resource.
The exploration group commented that it was in preliminary discussions with a selection of potential funding partners, with a range of funding options currently under consideration, including equity and debt to ensure optimum financing structure and minimal dilution.
The firm added that it had started engagement with key stakeholders over the development and mining stages, and that its key approvals and permitting for Hancock were advancing on schedule, with the oversight of Greenvalues consultants.
“The development aspects of the Hancock Iron Ore Project to be shovel ready for early 2023 are progressing very well,” said Alien Metals CEO and Technical Director Bill Brodie.
“We are on track to have all the permitting in place, and will soon be in a position to commence mining next year.”
“Additionally, in-depth discussions with third party contractors and potential offtake partners to enable us to get into production in 2023 are continuing”.