Alien Metals Ltd (AIM:UFO, OTC:ASLRF) non-executive chair Alwyn Vorster joined Proactive's Stephen Gunnion with details of an iron ore development study for the company's Hancock Iron Ore Project in Western Australia, including an updated Mineral Resources Estimate (MRE).
The study, which took approximately five to six months to complete, showcases an encouraging economic development pathway for the project, aiming for construction completion by the end of the year and market entry in early 2025. Highlighting the updated MRE of 8.4 million tonnes at 60% iron content, Vorster emphasized the vast exploration potential beyond this initial figure, pointing out the unexplored adjacent territory that could significantly augment the project's resource base.
The economic viability of the project is further bolstered by an all-in-sustaining cost of $85 per ton, with iron ore currently trading around $130 per ton. He said Alien Metals’ project also stands out for its low capital expenditure requirement, estimated at $20 to $30 million, versus billions for larger companies.
Additionally, he highlighted the strategic advantages of the Hancock project's location, including proximity to major infrastructure like export facilities and the town of Newman, which reduces the necessity for substantial additional infrastructure development.
Looking forward, securing the mining lease is identified as the next critical milestone, with construction anticipated to start by mid-year. Alien Metals aims to commence ore extraction in the first quarter of 2025, promising further updates as the project progresses.
