Alien Metals Limited reported progress on its highly prospective Hancock West (Mallina) tenement applications advancing towards grant at the Hancock flagship high-grade iron ore project in Newman, Western Australia. The Hancock West applications (E47/5157 and E47/5158) are currently in the Native Title referral period. The Nyiyaparli People, represented by the Karlka Nyiyaparli Aboriginal Corporation RNTBC ("KNAC"), have consented to the three applications in the existing Mining Agreement.
The Native Title advertising (objection) period remains open, but following discussions with KNAC, no objections are anticipated. E47/5157 and E 47/5158 are considered to be prospective for iron mineralisation with similar host geology to the existing mineral resources at the Hancock Project. Exploration success will have a positive outcome on the high grade, flagship iron Ore Project for the benefit of all parties.
The Hancock Iron Ore Project located 17km northwest of Newman, Western Australia, has a mineral resource of 8.4Mt @ 60% Fe JORC (2012), including an Indicated Resource of 4.5Mt@ 60.2% Fe. It shows an average annualised EBITDA of AUD 39 million, a pre-tax NPV10 of AUD 146 million and a pre-tax IRR of 133%, and an initial low development Capital Cost of AUD 28 million. Tenement Application Update The Company currently has 3 tenement applications (E47/5158, E47/5158 and E47/5159) lodged with the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS).
Two of these applications, E47/5157 andE47/5158 are now in the Native Title advertising period, and KNAC has confirmed these tenements fall under the existing Mining Agreement. No objection regarding the application and grant of E47/5157 and e47/5158 is anticipated during the Native Title advertising period, which closes in April 2025. The outcome of this work with KNAC, seeks to ensure that the rights of the Nyiyaparli People are respected and that the licences (E47/5157 & E47/5158) can be granted without further delay, assuming no objections during the Native Title advertising period.
Once granted, this will result in the opportunity for exploration for the Company and associated benefits for the Nyiyaparli people, including cultural heritage and environmental protection and management measures. Following the anticipated grant of E47/5158 andE47/5158, the Company will work with KNAC and the Department of Energy, Mines Inc, Industry Regulation and Safety (DEMIRS) to access the ground as quickly as practicable to explore for high grade, iron ore on these licences as quickly as practicable. Based on a review of available aerial imagery supported by GSWA 250k mapping, there is evidence supporting the presence of significant strike lengths of Weeli Wolli Formation BIF and Boolgeeda Iron Formation.
The Company is now planning for: a detailed mapping programme to be completed by experienced iron ore geologists over Weeli Wolli FormationBIF ridges, with a focus on delineating mineralisation boundaries supported by a technical mapping report; and exploration on E47/5157 and O47/5158 to investigate is the extent of any iron mineralisation in the Boolgeeda Iron Formation; The application for E47/5159 is currently the subject of negotiations with BHP Group Limited ("BHP") to finalise an access agreement as it overlies their existing Miscellaneous Licence. This is a normal part of the licence application process and will be completed as soon as practicable. Upon agreement with BHP, application E47/5159 will then be discussed with KNAC to formalise a Heritage Agreement as part of the normal granting process.
While E47/5159 is considered prospective for iron mineralisation, the advancement of the project is not reliant on this single licence.
