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Notes from Sharetalk interview re.Hamersley Iron Ore Project Update - 25 Aug 2022
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https://www.mediafire.com/file/8atb5pmw37hoprf/Notes_from_Sharetalk_interview_re.Hamersley_Iron_Ore_Project_Update_-_25_Aug_2022.pdf/file
Created from a messy Transcript export from YouTube
* Hello and welcome to share talk I am Bonnie Hughes, today we are speaking with Alien Metals, they have a portfolio of projects in western Australia containing iron ore, PGM’s and silver, Alien is rapidly advancing its Han**** iron ore project into production and here to provide us with an update is Bill Brody Good, CEO, hello Bill
- hi Bonnie, nice to catch up again.
* Yes you too, so yesterday Alien announced a revised agreement to acquire 90% of Hammersley iron ore project. Alien currently holds 51% and Winfield 49%, can you give us some details and the significance it has for the company?
- yeah sure I mean this… Winfield were obviously the original holders of the Hammersley project which is the Han**** and the Brockman tenements, sort of very underexplored and when we acquired them initially at 51% we had hoped to get the deal over the line last year
- just everything you know, it's been a very difficult 18 months, two years for everybody, so we've now yeah we're really pleased that it's slightly different deal parameters to what we initially talked about last year, but it's still critically for us we feel it's a good deal for Alien
- but importantly it gives us that 90% control of the project which means we can really drive forward now with all the development work for you know parties we're talking too, both contractors who we're talking to for getting for doing the haulage for doing the mining for doing the access work
- it gives them more you know.. de-risks the project because it's not then concerned that there's a JV at a sort of 51-49 relationship that sometimes you know they can be a bit harder to deal with than just having us IOCA Alien Metals driving the ship and you know managing the project
- and from our point of view it just means we have that yeah, we've de-risked the project in the sense of ownership for and management as I said for us to really be able to move ahead or continue to move ahead, I mean we haven't really slowed down but it we feel it's a key step in the development process.
CONTD..
* Speaking of moving ahead, Dan Smith your chairman was quoted as saying in the release that the team is fully focused on getting the Han**** project into production in the first half of 2023, now this seems like a very ambitious time frame?
- yeah it is, we've I mean we you know we issued a maiden resource, well it was September last year, it's quite scary how time flies in that sense but I think the key is and then follow up work, some initial metallurgical work to see the you know the more, the true sort of quality of the product and the products is great
- I mean it's really you know the greatest DSO (direct shipping ore) grade, the deleterious materials are very low in in comparison to what the market will sort of you know where the guidelines are for high-grade good quality products, so all that's looking very solid and it's a great project
- it's a simple for the commencement on especially on the ridge systems where the two of the three resources sit and where we've sort of focused at the moment, it's pretty much you're sort of shaving off the ridge you know, you're shaving off the material off the top so you're not having to do big traditional sort of open pit style mining at the outset
- product's great, location is fantastic, we you know we put in a miscellaneous license application to get the haul road access onto the great northern highway to transport the core, the ore, sorry up to Utah Point,…Port Headland
- Mining Plus who worked on the Fenix Project originally who would and they're doing fantastic they’re initial scoping study brought in some really excellent numbers really with a say a region of 65 USD dollars FOB (Free On Board) per ton to Utah Point for this sort of product is excellent and that includes everything, that's the mining, that's the haulage , that's you know taxis royalties all tied in, so a really great starting point
- and therefore you know we felt which is it's something really exciting that that we can progress and develop without you know going… without spending huge amounts of money or needing to spend huge amounts of money
- because again we don't need a railway, we don't need infrastructure to get the product to market and the way we're looking at it is third-party contractors, so we're not as a company... have to then commit to buying all sorts of equipment managing all that equipment, that's the contractor's role going forward
- and yeah so we just you know put our heads down, I’ve got Lloyd and Aaron and the team in Perth are doing a fantastic job, so we're we you know, we're pushing ahead we're sort of I’d say 70 plus percent in the process of getting all the necessary permitting
- We did apply for mining lease, I should have said that earlier already which is in process so we're doing the associated reporting, you know studies, flora, fauna, water, native title all those things are ongoing and yeah we're highly excited and we believe we'll be able to achieve that
CONTD..
* I’m considering the project's close proximity to some major players in the area, is there any possibility of off take from some of these players?
- absolutely, I mean.. we'd like to think that the project is now on the map so to speak, maybe even six months ago it was still not really a known project and understood but I think now we're definitely yeah we are talking to some of the neighbours
- so you've got obviously FMG, RIO, BHP and other smaller groups as well who are both producing or looking to add to their portfolio, we're talking to those, we're talking to possible off takers who would then actually you know organize to get the material to the final destination to the furnaces and yeah there's definitely and there's definitely a lot of momentum out there
- and also with the contractors we're now doing official tenders for all the specific areas of work and they're coming back, they're really positive because they like the project, they like the team they feel this there's a solid longevity in the project
- and don't forget Han****, at the moment our current resource around 10.5 million tons of DSO grade is the initial resource and we still have many kilometres of ground, of ridges to test
- we did some work on those earlier in the year, we did some mapping and some you know surface sampling and we still… I mean I was just chatting to Bradley Toms our exploration manager in Perth, we've got another three kilometres of strike length, high grade results from the surface work that we've walked over as well and feel that they will have potential to just keep adding you know tonnage, high grade material once we get into production
- it's like well here's the next you know the next ridge or the next million two million three million tonnes to just keep increasing the potential of the project, and of course Han**** is only one, we still have Brockman to the west which we're still looking to try and drill in in the coming couple of months as a maiden drilling
- which from our historical again ground sort of surface work mapping we were getting even higher grades at surface you know, 63-64% with such a group as RIO who have drilled pretty much in the southern area up to pretty much the sort of boundary with yeah… we don't know their results, they don't necessarily have to publish them but the fact that they've been drilling up to the boundary and had to stop because you know they can't cross the line so to speak
- but that, that's very encouraging for Brockman which is you know the next I suppose the next one off the rank in a way.
CONTD..
* So, at your AGM you announced some management changes, I guess that's because as you're moving towards projection you need a bit of change in management, tell us about that?
- I think I suppose it's more I’d like to think management, you know it's more board changes, more strategic board changes… the management, so my role hasn't changed other than I’ve stepped off the board
- honestly that you know, that gives me slightly more time to go back to what I really love doing which is the geology, the exploration… you know looking at maps and reports and working with the team and hopefully having more time to actually go and kick some rocks and stand on a drill rig myself in the coming few months
- even though still as a CEO I don't necessarily have that luxury… but I think the key, the key point there is with Rod coming in, once he's sort of vetted, which is a process that has to be done for the you know for the standards of the stock exchange and we hope that'll come through very soon, we can't see an issue
-but Rod brings a, another level I suppose of corporate support, corporate contacts really to both with the iron but also as importantly with the Munni Munni project, which is still not very much not forgotten and actually very much going to become one of the key sort of projects going forward as the iron ore becomes you know I’d like to say gets into production, is an income earning project for the company that then the funds feed into what's you know shaping up to be a very large and highly prospective you know… Munni Munni and Elizabeth Hill, we've sort of tied them all in together now, it makes sense they're all you know, they're all contiguous ground for the growth of the company.
CONTD...
* And you just recently announced that you've acquired a hundred percent of the Vivash Gorge project… just can you touch on that for us as well?
- yeah sure, I mean we… I think we… Zenith Minerals were looking , they're focusing on other things, it became a non-core asset in their portfolio
- they like what we're doing I think and so we had a very simple process to secure the license and we feel it's highly, it's been tested to a point but we feel not in the right locations… no disrespect to any of the predecessors who've gone on that ground and we're very excited
- I mean it's got a nearly I think, it's close to a 30 million ton resource, near DSO resource on its boundary in the central eastern part of the tenement defined by FMG and we feel that there's a continuation into this block as well as further targets that really have never been tested even on the ground, you know someone walking the ground taking some samples let alone drilling
- it comes with a fantastic granted permission of works for a big drilling program when we're ready to do that, it comes with Zenith support from… Zenith have been a great support in the process so we're yeah we're really excited by that
- and again it adds another you know another strategic project to the Iron Ore Company of Australia (IOCA) portfolio that also feeds into the development at the moment of the western hub for iron ore export which is the Onslow Ashburton onboarding project whereby they're looking at sort of a barge system
- where the material, you know the bulk material is put on barges taken out to deeper water where the where the bigger ships can get to and then loaded and sent off to market from there
- and where both Brockman and Vivash are sort of 250-280 kilometres from there which makes gain the possible you know, the economics really attractive as well.
* Well considering your success with Han**** I wish you all the best with Vivash and Brockman and we look forward to catching up with you again soon Bill.
- well thanks very much and yeah, I mean sort of watch this space, we've got lots of things going on and we're very excited in the team and hopefully we can keep updating the market and keep you know, keep working to our goals
* Thank you very much for joining us on share talk.
Thank you for posting dip666.
Hopefully we are moving into a news rich era. Thankfully it seems they are waiting for hanc0ck production before moving on the other projects.
For me, the 90% ownership needs sorting out or we are already tied into a JV with the original owners, which means any progression to mining will be problematic & (IMO) is the reason for no serious movement in the sp. Once 90% ownership is completed, everything can proceed but only once it is finalised.