LONDON (ShareCast) - (Sharecast News) - Alien Metals announced a significant new exploration target at its Hancock Iron Ore Project in Western Australia on Thursday, estimating between 12 million and 27 million tonnes of iron ore grading up to 62% iron.
The AIM-traded firm said the new target was based on recent rock chip sampling and geological mapping, and was in addition to the project's existing 8.4 million tonne mineral resource and mining reserve.

It said the latest programme - conducted in June and supported by helicopter access - confirmed extensive mineralisation on newly acquired tenements, particularly within structurally complex zones along iron-rich ridgelines.

Samples analysed using portable x-ray fluorescence (XRF) methods revealed enrichment consistent with known high-grade zones already in the development model.

Executive chairman Guy Robertson called the result "outstanding", saying it "further validates the scale and quality of this high-grade opportunity,"

"The exploration target shows that the Hancock Iron Ore Project could be materially larger than previously considered and positions Alien in a very strong commercial and technical position as we advance discussions with potential partners," he added.

The company said it had also executed an access agreement with BHP regarding the pending tenement E47/5159, clearing the way for the tenement to proceed through regulatory approvals.

The agreement marked a key step forward in consolidating Alien's position in the Pilbara, a region currently seeing renewed investment, the board explained.

Recent market developments included an AUD 2.5bn commitment by Rio Tinto and Hancock Prospecting to develop the Hope Downs 2 project, and the merger of Roy Hill and Atlas Iron into the newly formed Hancock Iron Ore entity.

The moves, Alien said, underscored the strong long-term fundamentals for high-grade iron ore and reinforced the strategic value of its Hancock project.

"With infrastructure access progressing and market interest in high-grade, low-impurity iron ore intensifying, Alien is exceptionally well-placed to complete a value-accretive transaction," Robertson said.

"The board remains focused on delivering outcomes that unlock the full value of Hancock for shareholders while preserving our strategic optionality across the broader portfolio."

At 1223 BST, shares in Alien Metals were up 27.39% at 0.11p.

Reporting by Josh White for Sharecast.com.

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