Photo by: Reuters
The Western Australia Department of Mines, Industry Regulation and Safety has granted Aim-listed Alien Metals a mining lease for the Hancock iron-ore project.
This represents a key milestone on the pathway towards development of the project and provides Alien with security of tenure for a 21-year term through to April 17, 2045.
"The company has made significant progress and is now in discussion with various parties regarding the required development funding. The technical team is currently focused on mining proposal submission and environmental assessment.
"It continues to assess strategies for increasing the existing resources and reserves, which is expected to significantly increase the value of the project. In addition, the company will proceed with necessary heritage clearances," comments Alien executive director Guy Robertson.
Alien in February announced the results of a development study on the project, which determined a low initial development capital cost of A$28-million.
The project is expected to produce about 1.25-million tonnes a year of ore at an all-in sustaining cost of $85/t.