TIDMALBA
RNS Number : 2392K
Alba Mineral Resources PLC
31 August 2021
Alba Mineral Resources plc
("Alba" or the "Company")
HALF-YEARLY REPORT
The Board of Directors of Alba Mineral Resources plc (the
"Company" or "Alba") is pleased to report the Company's interim
results for the six months ended 31 May 2021. They incorporate the
results of its subsidiary companies Aurum Mineral Resources Limited
("AMR"), Mauritania Ventures Limited ("MVL"), Obsidian Mining
Limited ("OML"), White Eagle Resources Limited ("WERL"), White Fox
Resources Limited ("WFRL"), Dragonfire Mining Limited ("DML"), the
Gold Mines of Wales group of companies ("GMOW"), GMOW (Gwynfynydd)
Limited and GreenRoc Mining Plc (formerly Pole Star Resources Plc)
(together, the "Subsidiary Companies", collectively with Alba, the
"Group").
CHAIRMAN'S STATEMENT
The six months to 31 May 2021 have seen the Company:
- complete successful drilling programmes at the Clogau-St
David's Gold Mine, which have enabled us to define a potential 550
m extension to the Main Lode as well as a vein system extending 122
m below the deepest previously worked zone at the Llechfraith mine
area;
- carry out a sampling exercise over the rock waste dump at
Clogau St-David's, with several pits dug and around 15 tonnes of
material extracted per pit;
- purchase and install a dedicated pilot gold processing plant
at Clogau-St David's, with the first set of assay results on bulk
sample concentrates produced from the plant returning notable
concentrate grades of 20.4 to 165.5 g/t;
- renew our exclusive mineral rights over the Dolgellau Gold Belt for a further four years;
- renew our base metals exploration licence in Ireland until May
2022 and define three main target areas for follow-up drilling
there;
- carry out purification test work in Germany which has
confirmed the suitability of Amitsoq graphite for the production of
high purity (99.95%) spherical graphite for lithium-ion
batteries;
- appoint an independent competent person to review the resource
potential at Amitsoq, resulting in the declaration of a large
tonnage, high-grade exploration target for both the Amitsoq and
Kalaaq graphite deposits;
- design and plan two extensive summer drilling programmes for
the Amitsoq and Thule Black Sands projects in Greenland;
- announce the divestment of Alba's Greenland assets into a
separate vehicle which, subject to regulatory approval, will be
admitted to trading on AIM; and
- appoint two new, high-profile Non-Executive Directors to the Board.
1. REVIEW OF ACTIVITIES
1.1 WELSH GOLD
(Clogau-St David's, Gwynfynydd, Dolgellau Exploration
Project)
(a) Underground Drilling
A Phase 1 underground drilling programme was successfully
completed in October 2020, with seven drill holes completed for a
total of 559 metres. All seven drillholes intersected quartz
veining, the known geological setting of all historic gold
production at the Clogau-St David's Gold Mine. Alba believes the
drilling to have intersected a 550-metre westerly extension to the
Main Lode, the source of most historic production at the Clogau-St
David's Gold Mine. A Phase 2 underground drilling programme
commenced in May 2021 .
(b) Surface Drilling
A Phase 1 surface drilling programme was successfully completed,
targeting a zone below the Llechfraith mine area. A total of ten
holes were drilled from the same location, as a result of which we
were able to project the newly identified vein system as having a
strike extent of up to 52 metres, as well as extending 122 metres
below the deepest previously worked zone at the Llechfraith mine
area. Assay results confirmed gold mineralisation across several
individual zones up to one metre thick, with individual values up
to 4.25 g/t, reinforcing our view that the newly modelled zone, the
Llechfraith Lode, is a key target for future development and
production at Clogau-St David's.
The second phase of the Company's surface drilling programme
commenced in April 2021, targeting the westerly, 550-metre
extension to the Clogau Main Lode, which was identified during the
underground drilling last year (see above).
(c) Pitting of Waste Rock Dump
In April 2021 we carried out evaluation pitting of the historic
waste rock dump at Clogau-St David's. The waste rock dump contains
material derived from the internal development of the Mine during
past periods of production. The dump is estimated to cover about
30,000 square feet and to contain 20,000 tonnes of rock. Several
pits were dug, with around 15 tonnes of material extracted per pit.
The material was then screened and a sample of the finer material
from each pit sent for gold assaying offsite.
(d) Bulk Sampling
The Company purchased and installed new items of plant at the
mine site, notably an impact crusher and gold concentrator. The
Company's dedicated pilot gold processing plant became fully
operational in January 2021. The first set of assay results on bulk
sample concentrates produced at the Company's pilot processing
plant at Clogau-St David's returned notable concentrate grades of
20.4 to 165.5 g/t from Jack Williams Lode and floor material from
Tyn-Y-Cornel area.
(e) Llechfraith Dewatering
During the period we submitted an application for a bespoke
water discharge permit to allow the lower workings in the
Llechfraith Shaft to be dewatered so that we can then undertake
underground drilling and bulk sampling directly from that key
zone.
(f) Permitting
Our six-year exclusive exploration licence over the Dolgellau
Gold Belt, including the Clogau-St David's Mine, was extended for a
further four years, until February 2025.
1.2 GREENLAND PORTFOLIO
(Amitsoq Graphite, Thule Black Sands Ilmenite, Melville Bay Iron
and Inglefield Multi-Element)
(a) Amitsoq Graphite
Graphite specialists ProGraphite of Germany undertook a test
work programme which demonstrated that a >96% graphite
concentrate can be produced from Amitsoq graphite and that
purification test work confirms the suitability of Amitsoq graphite
for Lithium-Ion Batteries ("LIBs"), with standard alkaline
purification, in particular, achieving a carbon level of above
99.95%, the grade needed for the production of spherical graphite
for LIBs.
Alba also commissioned Dr John Arthur CGeol, FGS to prepare an
Exploration Target for the Amitsoq Project. Dr Arthur determined
that the volume and grade ranges for:
(i) the Amitsoq Deposit Exploration Target are between 1.7 and
4.5 million tonnes (assuming a density of 2.63t/m3) with a grade
range of between 24-36% Graphitic Carbon; and
(ii) the Kalaaq Deposit Exploration Target are between 4.0 and
7.0 million tonnes (assuming a density of 2.63t/m3) with a grade
range of between 23-29% Graphitic Carbon.
This translates into a tonnage estimate of between 408,000 and
1,620,000 tonnes for the Amitsoq deposit and between 920,000 and
2,030,000 tonnes for Kalaaq.
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.
(b) Drill Planning
Alba spent much of the period under review designing and
planning for two significant drill programmes to be undertaken at
Amitsoq and Thule Black Sands ("TBS") over the summer of 2021. At
Amitsoq, drilling was aimed at defining a maiden JORC Resource for
the project. At TBS, meanwhile, drilling was aimed at significantly
increasing our JORC Resources as well as moving some of our
existing Inferred Resources into the Indicated category.
1.3 IRISH BASE METALS
The mineral exploration licence for Alba's 100% owned Limerick
Base Metals Project, PL 3824, was renewed until 26 May 2022.
A prospectivity review of the licence area identified the
Coonagh Castle Fault as one of main faults transecting the Limerick
Basin and concluded that being able to determine the trace of the
fault to within tens of metres on surface is crucial to the success
of future drilling.
Subsequent interpretation of Tellus and satellite (Sentinel)
imagery for the Alba licence area has identified three principal
exploration target areas within PL 3824, each exhibiting a number
of the structural and geological features found in Zinc-Lead
deposits in the Irish Zinc Ore Field.
2. CORPORATE
In May 2021 we announced that the Alba Board had determined that
the best way to unlock real value in our Greenland assets was to
divest them all into a separate vehicle which, subject to
regulatory approval, will be admitted to trading on AIM. That new
listed vehicle, GreenRoc Mining Plc, would acquire Alba's Greenland
Projects for shares and simultaneously undertake an IPO fundraising
to secure the necessary working capital to fast-track their
development. A further announcement on this will be made
shortly.
In December 2020, we strengthened our Board through the
appointment of Elizabeth Henson and Lars Brünner as Non-Executive
Directors. Elizabeth was, from 2007-2019, a senior international
tax partner for PricewaterhouseCoopers LLP (PwC), based in London.
As for Lars, from 2014-2020 he was the Arctic Mining and
Environment, Business Development Leader for Golder Associates A/S,
a leading international mining and environmental consultancy
firm.
3. RESULTS
The Group made a loss attributable to equity holders of the
parent for the period, after taxation, of GBP567,828 (2020:
GBP303,788). Much of the increase in loss from the comparative
period was due to costs incurred in undertaking the spin-out of the
Group's Greenland asset portfolio.
At the end of the reporting period, the Group's cash was
GBP1,619,649 with expenditure on exploration projects and on
administrative expenses during the period compensated by funds
received from the GBP1.2 million share placing at the end of the
last financial year. This was shown in the year-end balance sheet
as a significant debtor and subsequently paid during the reporting
period.
Intangible assets increased by just under GBP1 million from the
comparative interim period last year. This number excludes spend in
advance of the planned field programmes in Greenland, which is held
as a prepayment within debtors.
The basic and diluted loss per share was 0.009p (2020:
0.008p).
4. OUTLOOK
Alba remains in a strong position to generate real and sustained
growth across the Company's portfolio of assets and
investments.
On behalf of the entire Board, I would like to take this
opportunity to thank our shareholders for all their support.
George Frangeskides
31 August 2021
Executive Chairman
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
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 Company'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.
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 100%
----------- ----------
Clogau (gold) Wales 90%
----------- ----------
Gwynfynydd (gold) Wales 100%
----------- ----------
Inglefield (copper, cobalt,
gold) Greenland 100%
----------- ----------
Limerick (zinc-lead) Ireland 100%
----------- ----------
Melville Bay (iron ore) Greenland 100%
----------- ----------
TBS (ilmenite) Greenland 100%
----------- ----------
Oil & Gas Investments
Horse Hill (oil) England 11.765%
----------- ----------
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHSED 31 MAY 2020
Unaudited Unaudited Audited Year
6 months 6 months ended 30
ended 31 ended 31 Nov 2020
May 2020 May 2020
Revenue - - -
Cost of sales - - -
-------------- -------------- --------------
Gross loss -
Administrative expenses (371,566) (338,463) (543,942)
Other income - 34,542 -
Transaction-related professional (196,262) - -
fees
Operating (loss)/profit (567,828) (303,921) (543,942)
Revaluation of investment - - (1,430,000)
Finance costs - - (105,595)
-------------- -------------- --------------
(Loss)/profit before tax (567,828) (303,921) (2,079,537)
Taxation - - -
-------------- -------------- --------------
(Loss)/profit for the year (567,828) (303,921) (2,079,537)
-------------- -------------- --------------
Attributable to:
Equity holders of the parent (567,298) (303,788) (2,078,897)
Non-controlling interests (530) (133) (640)
-------------- -------------- --------------
(567,828) (303,921) (2,079,537)
-------------- -------------- --------------
Loss per ordinary share
Basic and diluted (0.009) pence (0.008) pence (0.047) pence
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2021
Unaudited Unaudited Audited Year
6 months 6 months ended 30
ended 31 ended 31 Nov 2020
May 2021 May 2020
Non-current assets
Property, plant and equipment 140,026 85,000 111,038
Intangible fixed assets 4,105,810 3,107,797 3,526,317
Investments - Horse Hill Developments 4,000,000 5,430,000 4,000,000
Investments -other - 11,125 -
Total non-current assets 8,245,836 8,633,922 7,637,355
------------ ------------ -------------
Current assets
Trade and other receivables 269,624 65,397 1,196,006
Cash and cash equivalents 1,619,649 105,470 1,512,031
------------ ------------ -------------
Total current assets 1,889,273 170,867 2,708,037
------------ ------------ -------------
Current liabilities
Trade and other payables (475,423) (406,900) (257,047)
Financial liabilities (41,134) (157,134) (41,134)
------------ ------------ -------------
Total current liabilities (516,557) (564,034) (298,181)
------------ ------------ -------------
Net current assets / (liabilities) 1,372,716 (393,167) 2,409,856
------------ ------------ -------------
Net assets 9,618,552 8,240,755 10,047,211
------------ ------------ -------------
Capital and reserves
Called up share capital 4,986,931 4,770,233 4,983,956
Share premium account 9,444,472 7,093,305 9,360,248
Warrant reserve 1,384,993 739,303 1,286,785
Reserve for warrants to be
issued - - 416,044
Retained losses (6,350,628) (4,577,582) (6,153,136)
Foreign currency reserve 168,612 230,287 168,612
------------ ------------ -------------
Equity attributable to equity
holders of the parent 9,634,380 8,255,546 10,062,509
Non-controlling interests (15,828) (14,791) (15,298)
------------ ------------ -------------
Total equity 9,618,552 8,240,755 10,047,211
------------ ------------ -------------
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHSED 31 MAY 2021
Unaudited Unaudited Audited Year
6 months 6 months ended 30
ended 31 ended 31 Nov 2020
May 2021 May 2020
Cash flows from operating activities
Operating loss (567,828) (303,921) (543,942)
Consulting fees settled in shares - 42,174 42,174
Share based payment charge 51,968 54,482 16,303
Change in fair value of other
investments - - 11,125
Foreign exchange revaluation
adjustment - 267 (61,406)
Increase / (decrease) in creditors 270,512 (45,509) (89,394)
(Increase)/ decrease in debtors (225,548) 32,190 13,453
---------- ---------- -------------
Net cash used in operating activities (470,896) (258,496) (564,108)
---------- ---------- -------------
Cash flows from investing activities
Payments for deferred exploration
expenditure (631,627) (57,367) (482,777)
Payments for tangible fixed
assets (5,059) - (26,038)
---------- ---------- -------------
Net cash used in investing activities (636,686) (57,367) (508,815)
---------- ---------- -------------
Cash flows from financing activities
Proceeds from issue of shares
and warrants 1,287,200 155,000 2,422,899
Cost of issue (72,000) (46,126) (105,000)
Proceeds from short term borrowings - 101,126 -
Proceeds from convertible loan
notes - - 192,000
Financing costs - - (37,200)
Repayment of short term borrowings
plus financing costs - - (99,078)
---------- ---------- -------------
Net cash generated from financing
activities 1,215,200 210,000 2,373,621
---------- ---------- -------------
Net increase in cash and cash
equivalents 107,618 (105,863) 1,300,698
Cash and cash equivalents at
beginning of period 1,512,031 211,333 211,333
---------- ---------- -------------
Cash and cash equivalents at
end of period 1,619,649 105,470 1,512,031
---------- ---------- -------------
NOTES TO THE HALF-YEARLY FINANCIAL INFORMATION
1. Basis of preparation
The Group consolidates the financial statements of the Company
and its subsidiary undertakings.
The financial information has been prepared under the historical
cost convention in accordance with International Financial
Reporting Standards ("IFRS"), International Accountant Standards
("IAS") and IFRS Interpretations Committee ("IFRIC")
interpretations as adopted by the European Union. The financial
information set out in this half-yearly report does not constitute
statutory accounts as defined in Section 434 of the Companies Act
2006. The same accounting policies, presentation and methods of
computation are followed in this interim condensed consolidated
report as were applied in the Group's annual financial statements
for the year ended 30 November 2020. The auditor's report on those
financial statements was unqualified and did not contain any
statements under section 498(2) or section 498(3) of the Companies
Act 2006.
2. Taxation
No charge for corporation tax for the period has been made due
to the expected tax losses available.
3. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to ordinary shareholders of GBP567,828 (May 2020: loss
of GBP303,788; November 2020: loss of GBP2,078,897) by the weighted
average number of shares of 6,209,415,290 (May 2020: 3,922,836,878;
November 2020: 4,421,614,727) in issue during the period. The
diluted loss per share calculation is identical to that used for
basic loss per share as the exercise of warrants would have the
effect of reducing the loss per ordinary share and therefore is not
dilutive under the terms of Financial Reporting Standard 22
"Earnings Per Share".
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