Alien Metals Limited (LSE: UFO) saw its shares jump 21% to 0.1p on Thursday after announcing a significant exploration target at its Hancock iron ore project in Western Australia’s Pilbara region.
The company estimates an additional exploration target of between 12 million and 27 million tonnes, with iron grades ranging from 58% to 62% Fe. This comes on top of the project’s existing JORC-compliant resource of 8.4 million tonnes at 60% Fe.
“This Exploration Target at our Hancock Iron Ore Project is an outstanding result that further validates the scale and quality of this high-grade opportunity,” the company stated. “It suggests Hancock could be materially larger than previously considered and places Alien in a strong technical and commercial position as we engage with potential development partners.”
Additionally, Alien confirmed that its Australian subsidiary has signed an access agreement with BHP, resolving a previous objection from the mining major and allowing the tenement to proceed through the governmental approval process.
Following the update, the company’s market capitalisation now stands just above £7 million.
