Alien Metals (LON: UFO) shares are gaining on Wednesday after the company said that the Hancock Iron Ore Project is “firming up as standalone DSO operation.”
Initial assay results from the second phase of Reverse Circulation (RC) resource drilling have demonstrated significant widths of direct shipping ore (DSO) grade intersections from the surface at the Sirius Extension Project.
UFO said that all intersections from the Sirius Extension Project clearly point to a contiguous DSO grade deposit. The best initial results from the second phase drill program included: 47m at 61.5% iron, 78m at 61.2% iron, and 25m at 61.5% iron.
Maiden resource estimation work and mining studies have commenced with initial results anticipated in Q3.
Further drilling at the Western Ridges Project is being planned as a third phase program, with management expecting it will deliver a zone containing a potential second resource.
Bill Brodie Good, CEO & Technical Director of Alien Metals, commented: “Our Hancock Iron Ore Project is shaping up to be a significant development opportunity for Alien. We have now defined DSO grade iron ore over a strike length of 350 metres at the Sirius Extension Prospect alone and we now have nearly all the data to calculate a maiden JORC resource at Sirius.”
“In parallel to this work the Company has already engaged specialisist mining consultants, Mining Plus, to deliver a high level scoping study for the Sirius Extension prospect. Mining Plus has extensive experience with similar DSO grade projects that have recently transitioned from explorer to producer in Western Australia; this provides valuable data as a benchmark for Alien and will provide robustness to the financial model, even at this preliminary stage. Alien is highly encouraged by the early review work and looks forward to providing an update in due course.”
Alien Metals' share price is currently trading at 0.85p, up 3%. It initially climbed to 0.949p earlier in the session.
Alien Metals shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are UFO shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .
Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.