TIDMALBA
RNS Number : 5600O
Alba Mineral Resources PLC
13 June 2022
13 June 2022
Alba Mineral Resources plc
("Alba" or the "Company")
Investee Company Update: GreenRoc Mining plc
Alba Mineral Resources plc (AIM: ALBA) is pleased to note the
announcement today by its portfolio company, GreenRoc Mining plc
("GreenRoc") (AIM: GROC). Alba holds a 54% majority interest in
GreenRoc. The announcement is set out below without material
changes.
GreenRoc Mining plc
("GreenRoc" or the "Company")
To view the RNS with illustrative diagrams and maps, please use
the following link:
http://www.rns-pdf.londonstockexchange.com/rns/5600O_1-2022-6-12.pdf
Amitsoq Graphite Project Update
Significant Tonnage Upgrade to Kalaaq Exploration Target
GreenRoc Mining plc (AIM: GROC), a company focused on the
development of critical mineral projects in Greenland, is pleased
to announce a significant increase to its Exploration Target at the
Kalaaq prospect, part of the Amitsoq Graphite Project in southern
Greenland ("Amitsoq" or the "Project"), one of the highest-grade
graphite deposits in the world.
Highlights
-- Following additional channel and field sampling along with
field mapping as part of the 2021 field season, the Exploration
Target for Kalaaq has now been updated.
-- The Exploration Target [1] has increased from a tonnage range
of 4Mt-7Mt at a grade range of 23-29% Graphitic Carbon ('Cg') (as
announced by Alba Mineral Resources plc on 7 May 2021) to a tonnage
range of 6 Mt-10 Mt at a grade range of 17-33% Cg.
-- Results confirm significant resource potential of this as yet
undrilled deposit, which is open along strike (predominantly to the
south) and down dip.
-- Kalaaq is one of two key deposits identified at Amitsoq, the
other being the Amitsoq Island Deposit, which has a combined
Indicated and Inferred JORC Resource of 8.28 Mt at an average grade
of 19.75% Cg, giving a total graphite content of 1.63 Mt, and an
Exploration Target of 5-15 Mt at a grade range of 18-22% Cg.
-- Drilling is due to resume at Amitsoq Island later this month,
targeting resource expansion to support a feasibility study, with
Kalaaq to be drilled next year.
-- Graphite is a core component of EV batteries, which is
driving demand and prices; the high quality and flake size of
Amitsoq's product is ideal for the manufacture of battery grade
spherical graphite required for the anode of lithium-ion batteries,
thus well positioned to capitalise on the Net Zero transition.
-- Demand for graphite is forecast to soar 10-fold; UBS
estimates a natural graphite deficit of 3.7Mt by 2030, representing
circa 37% of the market.
GreenRoc's Interim CEO, Lars Brünner, commented:
"The Amitsoq Project, comprising the Amitsoq Island and Kalaaq
deposits, is one of the highest-grade graphite deposits globally.
Our focus is to continue building resource tonnage to a level that
will support a detailed feasibility study, as part of our strategy
to fast-forward this Project into commercial production. This
Kalaaq Exploration Target, coupled with the current maiden resource
at Amitsoq Island of 8.28Mt at an average grade of 19.75% Cg,
underpins the significant resource and, in turn, the enormous value
potential of Amitsoq. Additionally, we have designed a clear
development strategy to ensure GreenRoc delivers on this.
"Recent corporate investment activity in Greenland's strategic
minerals space tells us that the time is now to advance exploration
at our flagship projects. We intend to drill Kalaaq in 2023 in
order to convert a substantial portion of the Exploration Target
there to a compliant resource. Meanwhile, preparations for Phase 2
drilling at the Amitsoq Island deposit are well underway, and we
expect to commence drilling this month as we target a
higher-tonnage, higher-category resource which will support the
development of a mine plan and feasibility studies. We look forward
to sharing further updates on our activities at Amitsoq in the
weeks and months ahead."
Figure 1 . Amitsoq Graphite Project in southern Greenland,
showing Amitsoq Island graphite deposit to the north (site of the
former graphite mine) and Kalaaq deposit to the south
Details
Alba Mineral Resources plc, which previously owned the Amitsoq
project before spinning out its entire Greenland portfolio to
GreenRoc in September 2021, commissioned Dr John Arthur (CGeol FGS)
to prepare an Exploration Target for the Kalaaq deposit in southern
Greenland. Dr Arthur is a Chartered Geologist and qualifies as a
Competent Person/Qualified Person (as defined by CRIRSCO and the
majority of National Reporting Organisations). The Exploration
Target subsequently announced on 7 May 2021 had a tonnage range of
4 Mt-7 Mt ) (assuming a density of 2.63t/m3) and a grade range of
23-29% Graphitic Carbon ('Cg').
Following the conclusion of the 2021 field season at Kalaaq, Dr
Arthur was commissioned by GreenRoc to update his Exploration
Target. Following a detailed assessment of all pertinent data sets,
Dr Arthur has concluded that the volume and grade ranges for the
Kalaaq Exploration Target are between 6 and 10 million tonnes
(assuming a density of 2.63t/m3) with a grade range of between
17-33% Graphitic Carbon, for between 1 Mt and 3.3 Mt of contained
graphite.
In accordance with the JORC Code (2012), the potential quantity
and grade of the above Exploration Targets is conceptual in nature,
there has been insufficient exploration to estimate a Mineral
Resource and it is uncertain if further exploration will result in
the estimation of a Mineral Resource.
The data used for the revised Exploration Target includes all
surface channel sampling and field mapping carried out during the
2021 field season as well as information validated from previous
surface mapping and investigations.
The revised Exploration Target incorporates additional areas
along strike to the south (inland) from the previous reported
Exploration Target as well as the newly discovered bodies in the
south-east and south-west. Based on the apparent continuity seen
from the extended field mapping, the Competent Person considers an
appropriate range for the Exploration Target tonnage to be between
6-10Mt and the range of grade (at a cut-off of 0.0% Cg%) to be
between 17-33%.
In addition to the sampling, geophysical (beep mat) surveys and
detailed structural mapping carried out previously, the updated
Exploration Target for Kalaaq draws on additional field work
carried out in 2021, namely additional mapping carried out further
inland to the south, south-east and south-west and an additional 11
sample sites, seven of which were targeted channel samples for
detailed sampling of the exposed mineralisation.
Figure 2. Exploration at Kalaaq showing the updated sample
locations and results of updated field mapping after the 2021 field
season.
Geological domain modelling was carried out to model the results
of the field exploration data using the Seequent Leapfrog Geo(R)
software. Continuity appears to be justifiable along strike as
evidenced from the exposure on surface and identifiable topographic
and structural features from surface mapping and structural
analysis. A high degree of confidence in the geological continuity
of the deposit structure is thus interpreted, at least in the
vicinity of the sampling and mapping programmes.
Peer Group Comparison
The Amitsoq project is among the very highest-grade graphite
projects in the world, with, to the Company's knowledge, only
Talga's Vittangi project having higher average grades amongst all
advanced (ie at least to Resource definition stage) projects
globally.
If the revised Exploration Targets for each of the Amitsoq
Island deposit and Kalaaq are successfully converted into defined
Resources following the planned further drilling, this would
maintain Amitsoq's position as one of the highest-grade projects
globally with total Resource tonnage comparable to that of Vittangi
(see Table 1).
Table 1. Comparison between GreenRoc and Talga flagship graphite
projects
Company Market Project Reserves Resources ET Grade Contained Combined Stage
Cap (Mt) (Mt) (Mt) (%) Ore (Mt) Contained
Ore (Mt)
A$385.5m
Talga (ASX: Vittangi
Group TLG) (Sweden) 2.26 24 0.5447 7.74 Feasibility
---------- -------------- --------- ---------- ------ ------ ---------- ------------ ------------
30.1 24.1 7.2
------------------------------------- --------- ---------- ------ ------ ---------- ------------ ------------
Amitsoq
GreenRoc Island Resource
Mining GBP6.7m (Greenland) 8.28 19.75 1.63 2.53-4.93 and ET
(AIM: (midpoint
GROC) 3.73)
-------------------------- ---------- --------- ---------- ------ ------ ---------- ------------ ------------
5-15 18-22 0.9-3.3
------------------------------------- --------- ---------- ------ ------ ---------- ------------ ------------
Kalaaq
(Greenland) 6-10 17-33 1.0-3.3 1.0-3.3 ET
(midpoint
2.15)
------------------------------------- --------- ---------- ------ ------ ---------- ------------ ------------
Amitsoq Drilling Update
Further to our RNS of 6 June 2022, preparations on site for the
phase 2 drilling programme at the Amitsoq Island deposit are well
advanced, and drilling is expected to commence this month (see
Figure 3 below).
Figure 3. Installation of base camp at Amitsoq in readiness for
start of phase 2 drilling (June 2022).
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
Glossary
Cg% Contained graphite as a percentage of the total
rock.
cut-off Applicable to Resources only. The minimum grade
required for a mineral or metal to be economically
mined (or processed). Material found to be above
this grade is considered to be ore, while material
below this grade is considered to be waste.
----------------------------------------------------------
Exploration Results Exploration Results include data and information
generated by mineral exploration programmes
that might be of use to investors but which
do not form part of a declaration of Mineral
Resources or Ore Reserves.
----------------------------------------------------------
Exploration Target An Exploration Target is a statement or estimate
of the exploration potential of a mineral deposit
in a defined geological setting where the statement
or estimate, quoted as a range of tonnes and
a range of grade (or quality), relates to mineralisation
for which there has been insufficient exploration
to estimate a Mineral Resource.
----------------------------------------------------------
graphitic of, relating to, resembling, or having the structure
of graphite.
----------------------------------------------------------
graphitic carbon Carbon may be present in rocks in various forms
including organic carbon, carbonates or graphitic
carbon. Carbon in rocks may be reported as fixed
or total carbon (i.e. organic carbon + carbon
in carbonate minerals + carbon as graphite)
or as graphitic carbon (i.e. total carbon -
(organic + carbonate carbon)).
----------------------------------------------------------
Indicated Resource Indicated Resources are economic mineral occurrences
that have been sampled (from locations such
as outcrops, trenches, pits and drill holes)
to a point where an estimate has been made,
at a reasonable level of confidence, of their
contained metal, grade, tonnage, shape, densities,
physical characteristics.
----------------------------------------------------------
Inferred Resource An Inferred Resource means that part of a mineral
resource for which quantity and grade or quality
are estimated on the basis of limited geological
evidence and sampling. Geological evidence is
sufficient to imply but not verify geological
and grade or quality continuity.
----------------------------------------------------------
JORC The Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves
('the JORC Code') is a professional code of
practice that sets minimum standards for Public
Reporting of minerals Exploration Results, Mineral
Resources and Ore Reserves.
----------------------------------------------------------
Maiden Resource The first Mineral Resource estimate to be completed
on a project.
----------------------------------------------------------
Mineral Resource A Mineral Resource is a concentration or occurrence
of solid material of economic interest in or
on the Earth's crust in such form, grade (or
quality), and quantity that there are reasonable
prospects for eventual economic extraction.
The location, quantity, grade (or quality),
continuity and other geological characteristics
of a Mineral Resource are known, estimated or
interpreted from specific geological evidence
and knowledge, including sampling. Mineral Resources
are sub-divided, in order of increasing geological
confidence, into Inferred, Indicated and Measured
categories.
----------------------------------------------------------
Ore Reserves The economically mineable part of a Measured
or Indicated Mineral Resource. It includes diluting
materials and allowances for losses which may
occur when the material is mined. Appropriate
assessments, which may include feasibility studies,
have been carried out, and include consideration
of and modification by realistically assumed,
mining, metallurgical, economic, marketing,
legal, environmental, social and governmental
factors. These assessments demonstrate at the
time of reporting that extraction can reasonably
be justified. Ore Reserves are sub-divided in
order of increasing confidence into Probable
Ore Reserves and Proved Ore Reserves.
----------------------------------------------------------
strike The direction and length of a geological feature
(for example, a vein or rock formation) measured
on a horizontal surface.
----------------------------------------------------------
Forward Looking Statements
This announcement contains forward-looking statements relating
to expected or anticipated future events and anticipated results
that are forward-looking in nature and, as a result, are subject to
certain risks and uncertainties, such as general economic, market
and business conditions, competition for qualified staff, the
regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political
jurisdiction, uncertainties regarding the results of exploration,
uncertainties regarding the timing and granting of prospecting
rights, uncertainties regarding the timing and granting of
regulatory and other third party consents and approvals,
uncertainties regarding the Company's or any third party's ability
to execute and implement future plans, and the occurrence of
unexpected events. Actual results achieved may vary from the
information provided herein as a result of numerous known and
unknown risks and uncertainties and other factors.
Competent Person Declaration
The information in this release that relates to Exploration
Results and Mineral Resources has been reviewed by Dr John Arthur.
Dr Arthur is a Fellow of The Geological Society of London and a
Chartered Geologist (FGS CGeol no. 1005744) and 28 years'
experience in the minerals and mining industry.
Dr Arthur has sufficient experience that is relevant to the
style of mineralisation and type of deposit under consideration and
to the activity being undertaken to qualify as a Competent Person
as defined in the 2012 Edition of the "Australasian Code for
Reporting of Exploration targets, Exploration Results, Mineral
Resources and Ore Reserves", also known as the JORC Code. The JORC
code is a national reporting organisation that is aligned with
CRIRSCO. Dr Arthur consents to the inclusion in the announcement of
the matters based on his information in the form and context in
which they appear.
**S**
For further information, please visit
www.albamineralresources.com or contact:
Alba Mineral Resources plc
George Frangeskides, Executive Chairman +44 20 3950 0725
SPARK Advisory Partners Limited (Nomad)
Andrew Emmott +44 20 3368 3555
ETX Capital (Broker)
Thomas Smith +44 20 7392 1494
St Brides Partners (Financial PR)
Isabel de Salis / Catherine Leftley alba@stbridespartners.co.uk
Alba's Projects and Investments
Mining Projects Operated Location Ownership
by Alba
Clogau (gold) Wales 90%
----------- ----------
Dolgellau Gold Exploration
(gold) Wales 90-100%
----------- ----------
Gwynfynydd (gold) Wales 100%
----------- ----------
Limerick (zinc-lead) Ireland 100%
----------- ----------
Investments Held by Alba Location Ownership
----------- ----------
GreenRoc Mining Plc (mining) Greenland 54%
----------- ----------
Horse Hill (oil) England 11.765%
----------- ----------
[1] In accordance with the JORC Code (2012), the potential
quantity and grade of this Exploration Target is conceptual in
nature, there has been insufficient exploration to estimate a
Mineral Resource and it is uncertain if further exploration will
result in the estimation of a Mineral Resource.
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