Alien Metals Ltd (LON:UFO), a minerals exploration and development company, has announced the results of the Development Study of its’ 90% owned Hancock Iron Ore Project, in the Pilbara Region, Western Australia that has confirmed that the Project has excellent project economics and prospectivity with extensive untested mineralisation trends. The Study was coordinated by experts Mining Plus Pty Ltd, Burnt Shirt Pty Ltd and internal UFO personnel and is based on an updated Mineral Resource Estimate containing a JORC Mineral Resource of 8.4Mt @ 60% Fe.
Key financial highlights:
· MRE of 8.4Mt @ 60% Fe JORC Mineral Resource, including an upgraded Indicated Resource of 4.5Mt@ 60.2% Fe.
· Based on 8Mt of the Mineral Resource being converted to mining inventory, robust project financials of the base case produced the following:
o an average annualised EBITDA of A$39m
o a pre-tax NPV10 of A$146m and a pre-tax IRR of 133%