TIDMALBA
RNS Number : 5417C
Alba Mineral Resources PLC
18 June 2019
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Alba Mineral Resources plc
("Alba" or the "Company")
Project and Investment Update
Alba Mineral Resources plc (AIM: ALBA) Alba (AIM: ALBA), the
diversified mineral exploration and development company, is pleased
to report on developments in respect of the Company's Clogau Gold
Project in North Wales, Thule Black Sands Project in Greenland and
Limerick Project in Ireland, as well as in respect of the Company's
investment in the Horse Hill Oil Project.
Highlights
Clogau Gold
-- Results have been obtained from a further 463 samples from
the recently completed 1,200 soil sample programme.
-- The full sampling programme has identified nine new anomalies
that are not associated with any significant historic mining.
-- Weighted average grades for all the new anomalies are well
above the average gold-in soil grades for Clogau-St David's and the
other historic mine areas.
-- The latest results show extensions to the previous
gold-in-soil grade anomalies and new anomalies have been identified
to the west of the sampled areas.
-- Gold mineralisation has now been confirmed across 6 miles
along the strike extent of the Dolgellau Gold Belt and from within
multiple geological units.
-- A further 600-sample infill and extension programme is currently underway.
Thule Black Sands ("TBS")
-- Latest test work confirms that contained ilmenite within the
heavy mineral concentrate ranges in TiO2 content from 45.8% to
47.6% with very low contaminant levels.
-- Confirmation that the purity of TBS ilmenite is extremely
consistent across the drilled portion of the project.
Limerick
-- Short drilling programme successfully completed, with analysis of drill core ongoing.
Horse Hill
-- Alba has decided not to contribute to the most recent cash
call issued by the Operator, HHDL, for GBP261,000, as Alba has
decided to deploy its cash reserves to the mining projects which
Alba operates and controls.
-- Any dilutive effect on Alba's 18.1% shareholding in HHDL will be negligible.
Alba's Executive Chairman, George Frangeskides, commented:
"We now have all results in from Phase 1 of our regional gold
exploration programme at Clogau. In total we have identified no
fewer than nine new gold anomalies that are not associated with any
significant historic mining, with these results now confirming gold
mineralisation over six miles across the Dolgellau Gold Belt. This
is a great result."
"We are currently in the process of designing the next steps to
target those new gold anomalies with follow-up exploration so as to
increase our level of confidence in the ability of those targets to
host significant gold mineralisation. This follow-up work may
involve trenching and/or drilling."
"Meanwhile, the final phase of rehabilitation works at the
Clogau-St David's Mine itself is due to commence within a week or
so. Completion of those works, which are scheduled to take no more
than a month, will be an important milestone towards the re-opening
of the Mine, as it will enable us to carry out underground
exploration within the Mine in order to pinpoint the likely
location of further in-mine gold mineralisation."
"In this update, we also report on the latest test results from
Thule Black Sands, where the purity of our ilmenite has been shown
to be extremely consistent across the drilled portion of the
project, with very low contaminant levels. This bodes well for the
future saleability of TBS ilmenite. And we report also on the
successful completion of our planned short drilling programme at
Limerick. We have now begun the detailed examination of the drill
core, and we are also starting to plan for follow-up drilling later
in the year, most likely targeting the deeper-lying zinc
mineralisation which is known to exist in the northern portion of
our licence."
Clogau: Sampling Results Increase New Areas of Gold
Mineralisation
Alba is pleased to report that all results have now been
received from the initial 1,200 soil sampling campaign being
undertaken within the Company's 107 km(2) licence area in North
Wales. Alba's Clogau Gold Project hosts the high-grade Clogau-St
David's gold mine as well as the extensive regional target known as
the Dolgellau Gold Belt.
Clogau: Soil Sampling Programme
Ongoing soil sampling and geochemical analysis is being carried
out within the Dolgellau Gold Belt with samples generally collected
at 20 m intervals on lines 200 m apart. This exploration programme
is the first of its kind, utilising modern-day exploration
techniques, that has been undertaken on the Dolgellau Gold Belt
since the first discovery of gold and base metals there during the
18(th) century.
The current field programme complements and expands upon the
orientation programme that was completed in the summer of 2018.
During that orientation programme, soil sampling was undertaken in
the area above and immediately adjacent to the existing Clogau-St
David's mine. This confirmed the presence of an associated
gold-in-soil anomaly and thereby confirmed the validity of the
exploration technique which is now being rolled out across
extensive regional targets within the wider licence area.
At each sample location, a sample is being taken from the B soil
horizon (subsoil) by hand auger. The results from the current
programme have been taken from a total of 1,200 soil samples and
were submitted for assay at the accredited ALS laboratory in
Ireland. To date, including the samples collected in the summer of
2018, results have been received from a total of 1,360 submitted
samples.
The team has now commenced an infill and extension programme of
approximately 600 samples. This programme is due for completion by
the end of June 2019. The infill and extension sampling is based on
the new results obtained and the areas of interest.
Figure 1 in the PDF version of this announcement highlights the
targets identified to date. The yellow anomalies represent new
targets based on the full sample database are believed to occur
where limited or no mining activities have taken place. The
historic Vigra, Clogau-St David's, Old Clogau and Garthgell mine
areas are shown in red in the PDF version of this announcement.
All anomalies will undergo further extensive ground truthing
although it is understood that no significant mining activities
have occurred in these areas.
Figure 2 in the PDF version of this announcement shows the
locations of all 1,360 samples collected and assayed to date. The
locations of the new sample results are shown as green dots.
Sampling to date, including those with assays still pending, covers
a strike extent along the Dolgellau Gold Belt of approximately 6
miles.
In Figure 2 in the PDF version of this announcement, the blue
unit represents the Clogau Shale with the Gamlan and Maentwrog
Formations lying immediately north and south respectively of the
Clogau Shale.
Figure 3 in the PDF version of this announcement shows all the
results obtained to date, which have a laboratory gold detection
limit of at least 0.001 ppm (equivalent to 0.001 g/t) Au. The assay
results for the gold-in-soil show a restricted dispersion halo away
from the predicted historic targets. Given the limited weathering
and thin soil profile above bedrock, the anomalous values are
considered likely to be close to source and the sampling highlights
that low gold-in-soil levels can be significant anomaly indicators
given the fact that we have previously confirmed the presence of a
low-grade anomaly associated with the Clogau-St David's mine, which
we know to have historically produced a significant amount of
high-grade gold and which we consider to be prospective for
additional gold mineralisation.
The results show that gold-in-soil grades above the detection
limit occur at multiple locations within the areas sampled to date.
Elevated values correspond with the known mine areas as well as
multiple locations that appear to be unaffected by mining
activities, thus some appear to represent potential bedrock sources
of gold rather than being due to contamination. This includes a
sample returning an assay of 0.65 g/t Au that lies within the
Gamlan Formation and is associated with an igneous intrusive body
that may represent an ore-controlling feature at the Clogau Mine.
This is an area which will undergo further investigation and infill
/ extension sampling.
The results obtained to date highlight multiple anomalies across
a range of geological features. This is not surprising given the
historic mining in the region targeted gold and base metals from
various lithological units. Traditionally, however, gold was mined
from within the Clogau Shale and it is clear from the results
obtained that a continuous anomaly is present within this unit.
However, elevated gold values are also now observed at contacts
between the Clogau Shale / Maentwrog boundary and within the Gamlan
Formation that do not appear to have been the focus for most of the
historic mining activities.
If the samples collected within the preliminary target
boundaries of a grade above 0.005 ppm are compared with those
samples of that same grade which were taken within the "historic"
anomaly boundaries, it is clear that the average grade of the
samples for all new anomalies is very comparable to the average
grade of the samples from the "historic" anomalies (see Table 1,
below), indeed the average grade for a number of the new anomalies
is significantly higher than that for the historic anomalies. At
the current level of investigation, the weighted average grades for
all new anomalies equates to 0.031g/t Au, compared to a weighted
average grade of 0.01g/t Au for Clogau-St David's and the other
historic mine areas.
Clogau-St David's Mine Rehabilitation Works
The final phase of rehabilitation works at the Clogau-St David's
Mine itself is due to commence within the next week or so. These
works will involve the repair/or and replacement of sections of the
roof just inside the entrance to the Llechfraith (Lower) Adit.
Completion of those works, which are scheduled to take no more than
a month, will be an important milestone towards the re-opening of
the Mine, as it should then be possible to carry out underground
exploration within the Mine in order to pinpoint the location of
areas of unexploited gold mineralisation.
Table 1: Comparison of average grades of samples equal to or
above 0.005 ppm.
Anomaly No. of Samples Min (ppm) Max (ppm) Average (ppm)
------------------ --------------- ---------- ---------- --------------
New Anomalies
1 33 0.006 0.204 0.022
2 11 0.006 0.021 0.010
3 4 0.006 0.648 0.170
4 10 0.006 0.247 0.041
5 7 0.006 0.010 0.008
6 4 0.006 0.013 0.010
7 2 0.012 0.017 0.015
8 4 0.006 0.279 0.080
9 2 0.011 0.027 0.019
------------------ --------------- ---------- ---------- --------------
Total / Average 77 0.006 0.648 0.031*
------------------ --------------- ---------- ---------- --------------
Historic Anomalies
Clogau-St David's 9 0.006 0.013 0.008
Garthgell 12 0.006 0.022 0.009
Old Clogau 2 0.013 0.014 0.014
Vigra 7 0.011 0.018 0.015
------------------ --------------- ---------- ---------- --------------
Total / Average 30 0.006 0.018 0.010*
------------------ --------------- ---------- ---------- --------------
*weighted average based on the sample numbers within each
anomaly
Thule Black Sands: Ilmenite Quality Results
As reported on 14 May 2019, additional test work to assess the
TiO2 content of the ilmenite was to be carried out on the composite
samples created from the samples collected during the 2018 drilling
campaign which led to the production of a Maiden Mineral Resource
Estimate on the Thule Black Sands project. The most recent
composite samples cover all areas of the maiden Mineral Resource
with the results of the scanning electron microscopy (SEM)
confirming the previous results obtained.
The new test work, which was undertaken at a certified
laboratory, has shown that the contained ilmenite within the heavy
mineral concentrate ("HMC") ranges in TiO(2) content from 45.8% to
47.6% with very low contaminant levels. The purity of the ilmenite
is extremely consistent across the drilled portion of the
project.
It should be noted that these results represent the ilmenite
quality only and does not represent the potential final product
grades attainable, the specifications of which will be tested
through future bulk sample test work.
Table 2 shows the ilmenite quality results from the twelve HMC
composite samples.
Table 2: Ilmenite quality results
Oxide Range (%) Average (%)
------------ ------------ ------------
TiO(2) 45.8 47.6 46.4
FeO(2) 39.1 41.8 40.1
Fe(2) O(3) 8.5 12.5 11.1
MgO 0.23 0.95 0.65
Al(2) O(3) 0.03 0.04 0.04
SiO(2) 0.02 0.07 0.03
CaO 0.02 0.02 0.02
V(2) O(5) 0.19 0.34 0.29
Cr(2) O(3) 0.03 0.13 0.09
MnO 0.46 0.60 0.52
Nb(2) O(5) 0.02 0.03 0.02
------------ ----- ----- ------------
Limerick: Completion of Drilling
Alba has completed a three-hole diamond drill programme at the
Limerick base metal project in the Republic of Ireland. The Project
is 100% owned by Alba pursuant to Prospecting Licence 3824. The
programme targeted Zinc-Lead mineralisation with the targets being
selected from soil and gravity anomaly data previously collected by
Alba. In total, 275.4m of drilling was completed with Figure 5 in
the PDF version of this announcement showing the location of the
drill holes completed and the final depth of each hole.
All drill holes intersected Waulsortian Reef Limestone and the
underlying Argillaceous Bioclastic Limestone, the contact of which
is commonly associated with base metal mineralisation. No visible
mineralisation was intersected, however favourable geology was
encountered. The drill core is being subjected to detailed
examination, with a view to the most interesting sections being
sent for assaying to test for anomalous values of Zinc or Lead. It
should be noted in that regard that, of the five drill holes
completed in 2012, drill hole TC-3824-003 displayed no visible
alteration or mineralisation, however as it intersected the correct
geological stratigraphy, a section of core was then duly subjected
to assaying, which returned 5750 ppm Zinc (0.575% Zinc) and 208 ppm
Lead (0.0208% Lead) for a white matrix breccia between 512 and 514
m.
Looking forward, Alba will now consider further drilling later
in the year to the north of the licence and in proximity to that
historic drill hole TC-3824-003. As this will be likely to involve
drilling significantly deeper holes than the holes completed in the
past month, it was not feasible to include that deeper target
within the current programme. Alba's technical team will use the
results from the current campaign to design the precise location
and orientation of the holes needed to target that northern
target.
Horse Hill Investment Update
The Company provides the following update in respect of its
investment in the Horse Hill Oil Project ("Horse Hill") in which
Alba has an 11.765% effective interest, by virtue of the Company's
18.1% shareholding in Horse Hill Developments Ltd ("HHDL"), the 65%
licence holder and operator of Horse Hill.
Alba has informed the Board of HHDL that Alba has decided not to
contribute to the most recent cash call issued by HHDL, Alba's
share of which is GBP261,000. The Alba Board has determined that
the deployment of the Company's cash reserves is currently best
directed towards the mining projects which Alba operates and
controls.
The effect on Alba's shareholding in HHDL of the Company's
decision not to contribute its share of that cash call will fall to
be dealt with in accordance with the dilution provisions in the
current HHDL investment agreement. In accordance with those
provisions, and subject to the HHDL Board determining to apply
those provisions, any dilution of Alba's shareholding will be
negligible (less than 0.1%).
Alba remains supportive of the Horse Hill Project, having
contributed over GBP2 million to Horse Hill work programmes since
the inception of the HHDL consortium in 2014, not including
acquisition costs. The Company will continue to monitor progress at
the Horse Hill Project and will consider its position in respect of
any future cash calls on a case by case basis.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Competent Person Declaration
The information in this release that relates to Exploration
Results has been reviewed by Mr Howard Baker, Technical Director of
Alba Mineral Resources Plc. Mr Baker is a Chartered Professional
Fellow of the Australasian Institute of Mining and Metallurgy
(Membership Number 224239) and a Competent Person as defined by the
rules of International Reporting Codes that are aligned with
CRIRSCO. Howard Baker 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. Howard Baker consents to the inclusion in the announcement
of the matters based on his information in the form and context in
which they appear.
Glossary
B soil horizon: Commonly referred to as "subsoil" and typically
consists of clay or minerals such as iron or aluminium oxides and
minor organic material. Plant roots penetrate through this layer,
but it has very little humus.
Clogau Shale: A dark-grey or black-banded carbonaceous mudstone
and silty mudstone.
Geochemical: Relates to the chemical composition of the Earth
and its rocks and minerals.
Geophysics: The application of the methods and techniques of
physics to the study of the earth and the processes affecting
it.
Hand Auger: A hand tool with a long blade that resembles a
screw, which drills narrow diameter holes when turned.
Intrusives: An igneous rock formed from magma forced into older
rocks at depth within the Earth's crust, which then typically
slowly solidifies below the Earth's surface.
Lithological Units: The lithology of a rock unit is a
description of its physical characteristics visible at outcrop, in
hand or core samples or with low magnification microscopy, such as
colour, texture, grain size, and mineral composition.
Lithological Contacts: The contact between two lithologies of
differing characteristics.
Mineralisation: Economically important metals that can occur at
a variety of scales from small disseminations through to large
zones or ore bodies.
Pathfinder Elements: In geochemical exploration, an element that
occurs in close association with an element or commodity being
sought, but one can be more easily identified because it forms a
broader halo or can be detected more readily by analytical
methods.
Quartz Veins: A distinct sheet-like body dominantly composed of
quartz hosted within a rock formation.
Strike Length: The direction and length of a geological feature
(for example, a vein or rock formation) measured on a horizontal
surface.
Structural Architecture: The three-dimensional distribution of
bodies of rock, as controlled by geological structures.
Weathering Profile: A vertical assemblage of weathering zones
(subsurface zones of alteration differing physically, chemically or
mineralogically from adjacent zones) from the surface soil to the
unaltered bedrock.
For further information please contact:
Alba Mineral Resources plc
George Frangeskides, Executive Chairman +44 20 3907 4297
Cairn Financial Advisers LLP (Nomad)
James Caithie / Liam Murray +44 20 7213 0880
First Equity Limited (Broker)
Jason Robertson +44 20 7374 2212
SVS Securities Plc (Joint Broker)
Eliot Hance +44 20 3700 0093
Yellow Jersey PR (Financial PR/ IR)
Tim Thompson / Harriet Jackson / Henry Wilkinson +44 77 1071 8649
alba@yellowjerseypr.com
Alba's Project & Investment Portfolio
Mining
Amitsoq (Graphite, Greenland): Alba owns a 90 per cent interest
in the Amitsoq Graphite Project in Southern Greenland and has an
option over the remaining 10 per cent.
Clogau (Gold, Wales): Alba owns a 90 per cent interest in Gold
Mines of Wales Limited ("GMOW"), the ultimate owner of the Clogau
Gold project situated in the Dolgellau Gold Belt in Wales.
Inglefield Land (Copper, Cobalt, Gold): Alba owns 100 per cent
of mineral exploration licence ("MEL") 2017/40 and 2018/25 in
north-west Greenland.
Limerick (Base Metals, Ireland): Alba owns 100 per cent of the
Limerick base metal project in the Republic of Ireland.
Melville Bay (Iron Ore, Greenland): Alba is entitled to a 51 per
cent interest in MEL 2017/41 in Melville Bay, north-west Greenland.
The licence area benefits from an existing inferred JORC resource
of 67 Mt @ 31.4% Fe.
Thule Black Sands (Ilmenite, Greenland): Alba owns 100 per cent
of MEL 2017/29 in the Thule region, north-west Greenland.
Oil & Gas
Brockham (Oil & Gas, UK): Alba has a direct 5 per cent
interest in Production Licence 235, which comprises the previously
producing onshore Brockham Oil Field.
Horse Hill (Oil & Gas, UK): Alba holds an 11.765 per cent
effective interest in the Horse Hill oil and gas project (licences
PEDL 137 and PEDL 246 covering a total area of 142.9 km(2)) in the
UK Weald Basin.
Web: www.albamineralresources.com
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