TIDMALBA
RNS Number : 7447F
Alba Mineral Resources PLC
20 July 2021
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Alba Mineral Resources plc
("Alba" or the "Company")
Update on Thule Black Sands Drilling
and Greenland Spin-Out IPO
Alba Mineral Resources plc (AIM: ALBA) is pleased to announce
that the Phase 2 Drilling Programme has commenced at the Company's
wholly owned Thule Black Sands Ilmenite Project in northern
Greenland.
The Company is also pleased to provide an update on the
transaction to spin out the Company's Greenland assets into a
stand-alone AIM-quoted vehicle.
Key Points
-- Drilling operations have commenced at the Thule Black Sands
Ilmenite Project in northern Greenland
-- Alba seeking to drill 125 holes for up to 1,000 m with the
aim of substantially increasing the existing JORC Mineral
Resource
-- DEM and bathymetry surveys will also be undertaken
-- Greenland IPO Spin-Out Transaction progressing
Thule Black Sands Drilling Programme
Alba's wholly owned subsidiary White Eagle Resources Limited
("White Eagle"), the owner and operator of the Thule Black Sands
Ilmenite Project ("TBS" or the "Project"), has commenced drilling
activities at site. The objective of the drilling will be to
significantly increase the existing JORC-compliant Mineral Resource
Estimate for the Project.
The drilling programme will focus on the higher-grade southern
area as delineated by the 2018 drilling campaign. Around 125 holes
are planned to be drilled by sonic rig at an average depth of 8m
which equates to 1,000m of drilling. The holes will be spaced on a
grid of 200m x 250m with fences placed midway (infilling) between
the 2018 fences. There will be some in-fill drilling within the
2018 fences to allow for Resource estimation to greater depths.
The 2018 Mineral Resource estimate only averaged 1 metre in
depth as the drilling was constrained by the permafrost layer being
encountered around that depth. To enable depth penetration through
the permafrost, the Company has chosen to use a sonic drill in the
current campaign. Initial reports are that the drill rig is
performing as expected.
Subject to successful completion of the upcoming drill programme
and a significant increase in the Mineral Resource, White Eagle
intends to progress to conceptual or scoping level studies to
assess the economic exploitation of the Project. This study work
will incorporate the metallurgical test work currently in progress
at IHC Robbins' Brisbane test facility, thereby allowing for a
relatively fast-track assessment.
In addition to the drilling, the Company will be carrying out a
Digital Elevation Model (DEM) survey over the licence area which
will greatly assist in future mine development activities, as well
as a bathymetry survey which will be used to input into future
near-shore shallow-depth ilmenite resource estimations and
infrastructure requirements. These surveys will be carried out by
ASIAQ Greenland Survey, which is 100% owned by the Greenland state
and which has significant experience in carrying out such surveys
and research projects in Greenland.
As announced on 7 June 2021, Alba has published an independent
JORC Exploration Target ("ET") for TBS. This has resulted in an
exploration target for the combined North, Central and South areas
of 70-300 million tonnes of material with a range of percentage of
total heavy minerals (THM%) of 35-50%, a range of ilmenite grade
(as a percentage of THM) of 12-22% and a range of in-situ ilmenite
grade of 6-11%.
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.
This Exploration Target will be partially tested in the current
drilling programme.
Greenland Spin-Out IPO
As reported on 20 May 2021, the Company intends to divest its
assets in Greenland, namely the Amitsoq, TBS, Melville Bay and
Inglefield Projects (the "Greenland Projects"), into a separate
vehicle ("New Listco") which will, subject to regulatory approval,
seek to be admitted to trading on AIM (the "Spin-Out Transaction").
New Listco will acquire the Greenland Projects from Alba for
shares, and simultaneously with the listing New Listco will
undertake an Initial Public Offering ("IPO") fundraising to secure
the necessary working capital to fast-track the development of the
Greenland Projects.
The Alba Board believes that moving the Greenland Projects into
a new listed vehicle will allow the market to set a stand-alone
and, Alba believes, materially greater value for those assets than
will be possible within Alba's currently diversified portfolio. As
part of the Spin-Out Transaction, Alba will receive New Listco
shares valued on IPO at approximately GBP6 million, resulting in
Alba becoming the majority shareholder of New Listco.
More information will be provided about the Spin-Out Transaction
as it progresses.
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.
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.
Without prejudice to the generality of the foregoing,
uncertainties also exist in connection with the ongoing Coronavirus
(COVID-19) pandemic which may result in further lockdown measures
and restrictions being imposed by Governments and other competent
regulatory bodies and agencies from time to time in response to the
pandemic, which measures and restrictions may prevent or inhibit
the Company from executing its work activities according to the
timelines set out in this announcement or indeed from executing its
work activities at all. The Coronavirus (COVID-19) pandemic may
also affect the Company's ability to execute its work activities
due to personnel and contractors testing positive for COVID-19 or
otherwise being required to self-isolate from time to time.
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 has been reviewed by Mr Mark Austin. Mr Austin is a member
of SACNASP (Reg. No. 400235/06), Fellow of The Geological Society
and Fellow of the Geological Society of South Africa. He has a
B.Sc. Honours in Geology with 38 years' experience.
Mark Austin 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. Mr Austin consents to the inclusion in the announcement of
the matters based on his information in the form and context in
which they appear.
Glossary
CRIRSCO: Committee for Mineral Reserves International Reporting
Standards.
Exploration Target: In respect of the reporting of an
Exploration Target, the JORC Code (2012) requires the inclusion of
a statement that "the potential quantity and grade of the
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". Exploration targets are not reported in table
form nor as a Mineral Resource statement, but rather written as a
range of potential upper and lower limits for tonnes, contained
commodity and grades.
For further information, please contact:
Alba Mineral Resources plc
George Frangeskides, Executive Chairman +44 20 3950 0725
Cairn Financial Advisers LLP (Nomad)
James Caithie / Liam Murray +44 20 7213 0880
ETX Capital (Broker)
Thomas Smith +44 20 7392 1494
Alba's Project and Investment Portfolio
Project (commodity) Location Ownership
Mining Projects
Amitsoq (graphite) Greenland 90%
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Clogau (gold) Wales 90%
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Gwynfynydd (gold) Wales 100%
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Inglefield (copper, cobalt,
gold) Greenland 100%
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Limerick (zinc-lead) Ireland 100%
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Melville Bay (iron ore) Greenland 51%
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TBS (ilmenite) Greenland 100%
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Oil & Gas Investments
Horse Hill (oil) England 11.765%
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END
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