Hancock Tenement OVERVIEW
The Hancock Tenement (E47/3954) is one of two tenements in the Hamersley Iron Ore Project, The Hancock tenement is within 20kms of the Newman township and borders licences held by Fortescue Metals Group, Hancock Prospecting, BHP Billiton (Mount Whaleback), Hope Downs and Brockman Mining. The Hancock tenement was previously explored by Rio Tinto plc, BHP Group plc, and more recently Volta Mining Limited (“Volta”). Alien have advanced the project from a few historic drill holes on a single target to a maiden JORC compliant resource across 3 prospects. Two of these prospect Ridges C and E are open along strike for over 9km within the tenement with potential to significantly increase the 10.4Mt @ 60.4% Fe (including 7.8Mt @ 60.1% Fe at the Sirius Extension target and 2.6Mt @ 61.5% Fe at the Ridges targets) resource.
Alien instructed Mining Plus to commence a Scoping Study on the project following the announcement of the MRE. Results will be announced as soon as available.
The initial independent Scoping Study for the Hancock Iron Ore Project has demonstrated exceptionally strong returns are possible from a potential development. Optimisations completed using an iron ore price of US$100/t result in the design pits extracting all of the initial JORC resources identified to date (10.4Mt @ 60.4% Fe). Initial Life of Mine studies show the current resource will sustain an 8-year life based on the following parameters:
- Mining rate of 1.25Mtpa with a pre-production capital estimate of <US$30m
- Exceptionally low strip ratios (c.1:1 on the Ridges deposits)
- Operating costs of <US$60/t FOB
|Commodity||DSO Iron Ore|
|Location||Pilbara, Western Australia|
|Deposit Style||Classic Pilbara BIF Iron Ore style|
|Key Attributes||Hosts Sirius Extension, Ridge C and E Inferred JORC Resources and Kalgan Prospects, large areas of tenement unexplored|
|Asset Stage||Maiden resource, exploration and infill drilling|
|Results||Maiden Inferred JORC compliant resource stands at 10.4Mt @ 60.4% Fe including 7.8Mt @ 60.1% at the Sirius Extension target, 1.5Mt @ 61.2% at the Ridge E target and 1.1Mt @ 61.9% Fe at the Ridge C.|
|Next Phase of Work||Infill drilling to upgrade the resource and drilling across tenement including along the Ridge C and E which extent for 9km to the east|
Maiden JORC Resource
The initial Inferred JORC compliant resource stands at 10.4Mt @ 60.4% Fe including 7.8Mt @ 60.1% at the Sirius Extension target, 1.5Mt @ 61.2% at the Ridge E target and 1.1Mt @ 61.9% Fe at the Ridge C target. The Mineral Resource Statement (“MRE”) has been restricted to material that falls within an optimised open pit shell and within the tenement boundary. Low levels of deleterious elements indicating that Hancock could produce high-quality Direct Shipping Ore (DSO) product. Ridges E and C are only partially tested to date, and the Company feel they have considerable potential to define further DSO grade material.
|Target||No. of Drillholes||Total Meters Drilled (m)||No. Fe Assays|
A brief site visit in November 2019 as part of a due diligence exercise enabled a few samples to be collected from the Kalgan prospect with independent laboratory results confirming the Company’s views on the exploration potential.
Alien has compiled all historic data into a core database extracting all relevant information from a series of old reports and maps and combine this with any new regional remote sensing data available.
Alien completed an exploration field program in November 2020, sampling over the known prospects fully outlining the surface extent of the mineralised units as well as to add mapping and structural information to look for potential repeat structures and orebodies undiscovered to date.
Regional traverses around known prospects have also been done to test as mentioned above the unchartered areas of the tenements and to better understand any repeat structures associated with structural controls in the region.
Seven mapping transects were walked across the Kalgan Prospect to test for the presence and lateral extent of previously reported high grade occurrences of iron ore. In situ outcrop of rock was mapped with 128 mapping points and 25 rock chip samples collected from mainly Banded Iron Formation (BIF) outcrops where iron was the dominant mineral present. BIF dominated by silica bands, dolerite, shale and rhyolite was not sampled in this program. In addition to the walked transects, a helicopter survey of the surrounding terrain was conducted and a further 12 samples were collected.
A series of BIF ridges were mapped parallel to the regional trend and on strike and parallel to the original Kalgan prospect trend and have returned constantly high-grade Iron with the majority from the sampling averaging over 60% Fe. Figure 3 below shows the sample locations and Iron Ore grades and shows the continuity of ridges C and D especially with the current sampling continuity both with consistently greater than 60% Fe grades. Ridge B also appears to host high-grade iron ore mineralisation and was recently sampled to fill in the gap between ridges B and F.
While the mapping and sampling has not comprehensively evaluated all the BIF occurrences within the tenement, at least two targets were highlighted for additional follow-up work concurrently with the maiden drilling campaign.
The exploration field program also laid the foundations for the ongoing drilling programs at the Hancock tenement, which originally targeted two prospects the Kalgan, Sirius extension. With more recent drilling targeting the Western Ridges (Ridge C, D and E), Southern Ridge and Krill Back.
Maiden Drilling Program
Alien completed maiden drilling in March 2021, with 53 Reverse Circulation (RC) holes for 3,350m of shallow drilling across priority High Grade Direct Shipping Ore (“DSO”) targets. Three main target areas drilled Sirius Extension, Kalgan and Western Ridges (Ridge C, D and E).
Significant DSO results include:
- 103m @ 61.8% Fe from surface ending in ore (Sirius Extension, AM21RC001 048).
- 73m @ 59.5% Fe from 6m ending in high-grade ore (Sirius Extension, AM21RC001 047).
- 26m @ 54.3% Fe from surface, including 13m @ 61.5% Fe from 2m depth (Ridge C, AM21RC001 006).
- 18m @ 55.1% Fe from surface (Kalgan Prospect, AM21RC001 016).
- 10m @ 55% Fe from 3m (Kalgan Prospect, AM21RC001 012).
- 12m @ 60.5% Fe from 4m (Ridge E, AM21RC001 033).
Maiden drilling confirmed four high grade DSO iron ore prospects across the Hancock tenement.
A DSO zone was identified along Ridge C in the maiden drilling with the most significant hole along the ridge being the aforementioned AM21RC001 006.
2nd Drilling Program
Phase 2 drilling completed in June 2021, with 40 Reverse Circulation (“RC”) holes for 2,175m, three main target areas drilled Sirius Extensions, Ridges C and E part of the Western Ridges. A new target was discovered during drilling Krill Back southeast of Sirius Extension.
All intersections from the Sirius Extension Project pointed to a contiguous DSO grade deposit with best initial results from the second phase drill program including:
• 47m @ 61.50 % Fe in hole AM21RC002 001 from 2m
• 78m @ 61.20 % Fe in hole AM21RC002 002 from 1m
• 25m @ 61.50 % Fe in hole AM21RC002 003 from surface
• 88m @ 60.60 % Fe in hole AM21RC002 004 from 1m
• 29m @ 59.60 % Fe in hole AM21RC002 005 from 12m
• 19m @ 59.30 % Fe in hole AM21RC002 006 from 15m
• 68m @ 58.50 % Fe in hole AM21RC002 007 from 11m
• 90m @ 59.60 % Fe in hole AM21RC002 008 from 10m
• 119m @ 58.87 % Fe in hole AM21RC002 010 from 1m
• 43m @ 57.41 % Fe in hole AM21RC002 011 from 1m
Significant intersections from the Western Ridges Prospect include:
• 10m @ 58.37 % Fe in hole AM21RC002 022 from 8m
• 10m @ 60.20 % Fe in hole AM21RC002 025 from 10m
• 11m @ 59.46 % Fe in hole AM21RC002 032 from 7m
• 10m @ 60.32 % Fe in hole AM21RC002 035 from 13m
• 12m @ 62.54 % Fe in hole AM21RC002 036 from 2m
• 14m @ 62.80 % Fe in hole AM21RC001 030 from 1m
3RD Drilling program Planned
- 3rd phase drilling program totalling 1,400 metres to increase geological confidence in the existing JORC compliant inferred Mineral Resource Estimate of 10.4Mt @ 60.4% Fe all booked in to start in coming days
- Program to upgrade the Inferred JORC resource to Indicated at least on the existing Ridge C and E deposits
- Program to commence testing of existing ridge extensions untested to date as well as some new ridges to the south
- Diamond Core drilling program to compliment the Reverse Circulation work to further support MRE update as well as provide material for early metallurgical and commutation testing for further mining studies for a further 650 metres planned for 7 holes.
- Hand held XRF (pXRF) readings expected soon from 60 Rock chip samples collected during recent field reconnaissance program post laboratory level sample preparation carried out.