Following September’s publication of a much-anticipated maiden iron ore resource estimate (‘MRE) in excess of 10Mt Direct Shipping Ore (‘DSO’) on its Hancock Iron Ore Project (‘the Project’) in the Pilbara region of Western Australia.
Alien has today released the results of an initial independent scoping study (‘the Scoping Study’). Optimisations completed using an iron ore price of US$100/tonne (compared with a current spot price of US$123.4/tonne for Fine China Import 62% Fe grade), resulted in the design pits extracting all of the initial JORC resources identified to date (10.4Mt @ 60.4% Fe) over an estimated 8-year with Life of Mine (‘LOM’).
With operating costs of <US$60/tonne Free-on-Board (‘FOB’) resulting in potential annual operating cashflow of greater than US$50/tonne at current spot prices along with significant opportunity to substantially enlarge the Project’s total resource, management are now focussed on accelerating development, permitting and mine design with a view to moving into production within a short timeframe.
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