(Alliance News) - Shares rose in Alien Metals Ltd on Tuesday after it announced encouraging results from samples taken from two iron ore projects the company is poised to acquire.
Shares in the mineral exploration company - which is headquartered in London - were 37% higher at 0.206 pence on Tuesday.
An independent laboratory analysis of 17 rock chip samples taken from both the Hancock Ranges and Brockman iron ore projects in Australia has highlighted high-grade direct shipping ore potential.
In mid-September, Alien Metals signed a binding option agreement with Australian miner Windfield Metals Pty Ltd to give Alien a 51% interest each in the Hancock Ranges and Brockman projects.
The assay results suggest that both projects host iron ore mineralisation comparable to that being mined by major operating companies in the region.
A site visit by consultants confirmed the location of drill hole collars from Volta Mining's operations in 2014 and interpreted mineralised zones suggested to be within the Hancock Ranges project area.
The site visit also confirmed the excellent potential the Kalgan prospect in the Hancock Ranges to host significant tonnages of direct shipping ore-grade iron ore.
Finally, initial geological mapping and sampling of the historic BHP 20 deposit on the periphery of the Brockman project indicates mineralisation that extends onto the project tenement.
Following these findings, the option period has been extended by 15 days to Monday next week.
"The initial assay results and geological information from the technical due diligence field trip are highly encouraging. Of the 17 samples taken across the two projects, numerous assays returned greater than 60% iron, which is direct shipping ore quality, and the brief geological mapping carried out further enhanced the perceived potential of both projects," said Technical Director Bill Good.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Alien Metals (UFO)