Alien Metals, a minerals exploration and development company, has agreed to acquire the Zenith Minerals’ Vivash Gorge iron ore project in the Pilbara region, Western Australia.

Under the terms of the acquisition agreement, Alien is expected to issue its new Common Shares worth A$100,000 ($71,530) to Zenith, subject to achieving certain milestones.

In addition to the consideration, the company will grant an ongoing royalty payment to Zenith, based on production of $1/dwt of the quantity of shipped ore derived from the area.

Alien said that the acquisition of Vivash Gorge project will enhance its IOCA portfolio of DSO iron ore projects within the Pilbara region.

Alien Metals CEO and technical director Bill Brodie Good said: “The potential acquisition of the Vivash Gorge iron ore project from Zenith Minerals will be a great addition to our growing iron ore portfolio.

“Given the adjacent DSO grade deposits defined by iron ore major Fortescue Metals Group, coupled with what we believe to be the tenement’s highly prospective yet untested geology, Vivash Gorge provides Alien with a third strategically located high grade iron ore project within the Pilbara region.

“With drilling approvals already in place, we see the immediate potential to get on the ground and test the numerous targets that are on strike from Fortescue’s Vivash SW deposit.”

The Vivash Gorge project is located nearly 80km west of the Tom Price township, 60km south of the company’s Brockman project, and covers an area of around 47km2.

The project has seen exploration work by Rio Tinto between 2018 and 2020, which included geological mapping and limited drilling of targets in the north and south of the tenement.

Rio Tinto has conducted the works under an exploration and option agreement with Zenith.

The company has drilled nine RC holes in the north eastern area, and four in the south eastern corner with the best intersection returning 8m @ 53.8% Fe from surface.

Zenith has carried out a further limited rock chip sampling programme in the property’s south eastern area, which demonstrated a high of return of 55.4% Fe.

In March last year, Alien has signed an exclusivity agreement with Wombat Resources to acquire a historic silver tailings project located within the former’s Elizabeth Hill mining licence in Western Australia.