TIDMALBA
RNS Number : 0445T
Alba Mineral Resources PLC
22 November 2021
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Alba Mineral Resources plc
("Alba" or the "Company")
Dolgellau Gold Field Project Update
Significant Gold and Base Metal Grades Across Multiple
Targets
Alba Mineral Resources plc (AIM: ALBA) is pleased to provide an
update on regional exploration activities at its Dolgellau Gold
Field Project ('DGF' or the 'Project') in Wales as well as an
update on the Company's application to dewater the Llechfraith
Shaft at the Clogau-St David's Gold Mine.
Key Points
Dolgellau Gold Field Exploration Project
-- Further exploration across a number of high-priority regional
exploration targets in the DGF has resulted in a suite of
substantial precious and base metal results
-- Multi-commodity mineralisation confirmed from sampling at
Hafod Owen Prospect and Carndochan Gold Mine:
o Hafod Owen Prospect - in-situ gold mineralisation grading up
to 1.5 g/t Au (with previous sampling grading up to 24.1 g/t Au)
and spoil tip samples grading 0.353 g/t Au and 6.76% Cu)
o Carndochan Gold Mine - samples returned grades of up to 20.6
g/t Au, 27.1 g/t Ag and 1.175% Pb
-- New regional exploration target identified, the Afon Gain Prospect:
o Two historic trial mining sites sampled, with precious metal
grades of up to 2.43 g/t gold (Au) & 33.7 g/t silver (Ag) and
base metal grades of up to 3.96% copper (Cu), 4.25% lead (Pb) &
2.39% zinc (Zn).
-- Caerwych Prospect identified within new licence expansion,
with copper grades of up to 2.92% Cu and structural gold targets
identified for follow-up work.
Clogau-St David's Gold Mine - Water Discharge Application
-- Following recent constructive discussions with the regulatory
authority, Alba is in the process of preparing certain
supplementary information to enable a further consideration of the
Company's application to dewater the Llechfraith Shaft.
Alba's Executive Chairman, George Frangeskides, commented:
"Our ongoing exploration programme at the Dolgellau Gold Field
in Wales has not only yielded substantial precious metal grades,
including 20.6 g/t gold and 27.1 g/t silver at the Carndochan Gold
Mine, but, importantly, it has also generated strong base metal
results, which greatly increase the Project's multi-commodity
potential. With grades for high demand metals of up to 3.96%
copper, 4.25% lead and 2.39% zinc at the newly identified Afon Gain
Prospect, we look forward to continuing to advance this
multifaceted UK project and quantifying its full potential."
"In other encouraging news, I am pleased to report on
constructive discussions having been held with the regulatory
authority on the matter of our application to dewater the
Llechfraith Shaft at the Clogau Gold Mine. Our team is now working
to provide updated submissions with a view to a further
consideration of our application."
Dolgellau Gold Field Exploration Update
In the Company's RNS of 22 July 2021, we reported on a new
regional gold target within our exploration licence area, close to
Gwynfynydd, with grab samples grading up to 24 g/t Au. Our field
geologists have since returned to that target, Hafod Owen, to
conduct further sampling, have initiated field exploration at the
former Carndochan Gold Mine, situated in the most easterly of our
package of licence areas, and have confirmed the potential of a new
target, Afon Gain, which shows significant potential for
polymetallic mineralisation.
Following the recent grant to the Company of an additional
licence area in the DGF (see our RNS of 20 September 2021), Alba's
field team has also conducted field reconnaissance at the historic
Caerwych mine site, situated in the new licence area, taking
samples which have returned notable copper grades.
We report below on each of these developments, which not only
re-emphasise the significant number of high-grade gold prospects
within the DGF but also highlight the copper, lead and zinc
potential of the region.
Hafod Owen Prospect
Alba has conducted follow-up field exploration at Hafod Owen
after samples taken in May 2021 returned significant grades of up
to 24.1 g/t Au. The 24.1 g/t sample was taken from a boulder close
to historic mine workings in a major N-S valley. A thin vein
(MHO-03) with a similar mineralogy was observed in outcrop in
another N-S valley 300 m to the east of the original high-grade
sample. This was sampled and assayed, returning 1.5 g/t Au, thereby
confirming the potential for widespread gold mineralisation at
Hafod Owen.
Assaying of an additional sample (MHO-04) taken from a historic
mine waste tip associated with a possible N-S structure 250 m
southwest of the 24.1 g/t Au sample returned grades of 0.363g/t Au
as well as high-grade copper at 6.76 % Cu. This highlights the
potential for polymetallic mineralisation in the lodes at Hafod
Owen.
A sample (MHO-05) taken from an outcrop with visible quartz
veining graded 0.487 g/t Au, confirming the presence of auriferous
mineralising fluids close to the easternmost target structure
identified by Alba. Additional samples were taken from road cutting
outcrops, with sample MHO-09 assaying at 0.198 g/t Au, highlighting
the presence of mineralising fluids in a quartz vein sub-parallel
to an adjacent NNW-trending shear zone.
To date, outcrop sampling has shown the presence of elevated
gold concentrations in relatively poorly mineralised bedrock,
indicating auriferous hydrothermal fluid activity in the region.
The vein samples previously taken from a spoil tip at the prospect
(samples 802 and 803 in Table 1 which returned 6.53 g/t Au and 24.1
g/t Au respectively) demonstrate the potential for high-grade
mineralisation at Hafod Owen, and the relatively poor outcrop
exposure in this region leads the Company to believe that examples
of these veins and the breccia mineralisation have remained hidden
below superficial cover.
Alba's technical team is finalising an exploration strategy to
unlock the significant potential of the Hafod Owen Prospect, with a
view to identifying targets for drilling.
Carndochan Gold Mine
The Carndochan Gold Mine, the furthest east of all the notable
historic gold mines in the region, was intermittently operated up
until the early 20(th) Century, reportedly producing 2,643 oz Au
from 6,956 tonnes of ore. The mine produced gold at an average
grade of 11.88 g/t, as well as significant silver and lead credits.
In addition to free-milling gold, the lode hosted galena shoots
which were rich in gold and silver.
Alba's field work at the mine has involved collecting structural
data to create an initial 3D model, as well as taking samples from
a historical waste tip. Samples were cut on-site, revealing the
presence of coarse galena and subordinate sphalerite and pyrite in
the vein material.
Assay results have returned high-grade gold-silver, with
significant zinc-lead credits. Notably, sample CCD-02 represents a
good representation of the target mineralisation at Carndochan,
displaying coarse aggregates of galena with sphalerite and pyrite
grains. The sample (weighing 2.3 kg) returned grades of 20.6 g/t
Au, 27.1 g/t Ag, 1.175 % Pb and 0.257 % Zn. Sample CCD-03 showed
stronger sphalerite mineralisation, grading 1.63% Zn and 0.392 g/t
Au.
The Carndochan deposit is considered to be underdeveloped, being
untested both at depth and along strike of the existing
workings.
Alba's technical team is currently evaluating the optimal
strategy for taking this prospect forward, adding yet another
brownfield exploration asset to Alba's significant portfolio in the
DGF.
Afon Gain Prospect
Identified in Alba's previous work on geochemically prospective
drainage basins as a possible area of interest (see our RNS of 22
July 2021), recent analysis of three historical stream sediment
datasets has confirmed the prospectivity of two key drainage basins
in the catchment of the Afon Gain. A field visit to the prospect
involved ground-truthing two known mineral occurrences, which
confirmed the presence of trial mining sites on mineralised quartz
veins in and above the Clogau Formation, a shale unit which is a
critical control on gold mineralisation at the Clogau St. David's
Gold Mine and elsewhere in the DGF.
At the first locality, a surface trial was found to expose a 1.5
- 2 m thick vein system, which was observed to contain sulphide
mineralisation. An in-situ sample taken from this vein graded 0.125
g/t Au, 9.83 g/t Ag and 0.872 % Cu. The vein trends ENE-WSW, and
quickly disappears under thick overburden which is characteristic
of the target region.
More extensive trial mine workings were found at a second
locality, and samples were taken from spoil tips that were rich in
heavily mineralised quartz. Sample AG-003 was taken from the
largest spoil tip, and returned assays of 0.143 g/t Au, 33.7 g/t
Ag, 1.115 % Cu, 4.25 % Pb and 2.39 % Zn, showing significant
potential for polymetallic mineralisation. Samples were also taken
from a second waste tip, with sample AG-004 assaying at 2.43 g/t
Au, 15 g/t Ag and 1.22 % Cu, and AG-006 grading 1.6 g/t Au, 12.45
g/t Ag and 1.62 % Cu. Another sample was taken from a waste dump to
the west of this site, where the worked lode had been displaced to
the south by a cross-cutting fault. This sample graded 0.532 g/t
Au, 21.2 g/t Ag and 3.96% Cu.
Both localities showed ENE-WSW striking veins with very similar
mineralogy and vein textures, suggesting they formed as part of the
same larger mineralised system. The Au-pathfinder geochemical
characteristics of the veins suggest that the system has potential
for gold-belt style mineralisation, especially in association with
the Clogau Formation. Utilising modern exploration techniques to
explore through thick overburden will enable the first concerted,
in-depth exploration of the resource potential of this new
prospect.
Caerwych Prospect
Following the grant of the north-west extension to Alba's
licence areas over the DGF, Alba has conducted field reconnaissance
at the historic Caerwych mine site. The focus of historic
production at Caerwych is understood to have been on base metals,
possibly prior to the discovery of gold at Cwmheisian in the 1840s.
The lode at Caerwych showed some signs of chalcopyrite and pyrite
mineralisation, particularly in association with wall-rock
contacts. While seven samples taken by Alba from outcropping
mineralisation and spoil tips showed no significant gold grades,
samples CRW-01 and CRW-03 showed notable copper grades of 1.335 %
Cu and 2.92 % Cu respectively.
The Caerwych lode is hosted by the sedimentary rocks of the
lower Gamlan Formation, underlying the economic package in which
gold mineralisation is found elsewhere in the DGF. However, the
lode also lies within a notable topographic lineament that visibly
extends for several kilometres to the NE and is thought to cross
through the Clogau Shales and intrusive units, both critical
controls on ore formation at Clogau St. David's. Future work at
Caerwych will focus on where this lineament and other sub-parallel
NE-SW structures intersect the Clogau Shales, in order to assess
whether these structures have the potential to host the high-grade
mineralisation found elsewhere in the DGF.
Table 1 : Rock sample assay grades for Alba's regional
exploration samples showing Au, Ag, Cu, Pb and Zn grades.
Significant grades highlighted in bold. Previously reported assays
(802-806) shown in italics. (NB: 1 ppm is equal to 1 g/t, and
10,000 ppm equals 1 wt.%)
Sample Location Sample Type Assay Grades (ppm)
No. ID
--------- -------------------------
Au Ag Cu Pb Zn
--------- ------------------------- ------ ------ -------- ------ ------
Hafod Owen
802 ND-01 Tree Root Boulder 6.53 2.61 42.4 73.4 2
803 ND-02 Tree Root Boulder 24.1 9.29 308 181.5 10
--------- --------- ------------------------- ------ ------ -------- ------ ------
804 CAD-01 In-situ Vein 0.069 0.11 3.7 7.7 3
805 CAD-02 In-situ Vein 0.041 0.06 2.1 5.4 2
--------- --------- ------------------------- ------ ------ -------- ------ ------
806 MHO-01 Rock Outcrop 3.82 7.1 46 46.9 1390
--------- --------- ------------------------- ------ ------ -------- ------ ------
834 MHO-02 In-situ Qz Vein 0.021 0.07 33.3 3.2 6
--------- --------- ------------------------- ------ ------ -------- ------ ------
In-situ veining,
sulphide mineralisation
835 MHO-03 and alteration 1.5 1.53 690 7.4 23
--------- --------- ------------------------- ------ ------ -------- ------ ------
836 MHO-04 Qz Dump, no outcrop 0.363 6.81 67600 45 32
--------- --------- ------------------------- ------ ------ -------- ------ ------
In-situ vein and
837 MHO-05 alteration halo 0.487 2.34 187 79.9 51
--------- --------- ------------------------- ------ ------ -------- ------ ------
In-situ Qz Vein,
838 MHO-06 Shear Zone 0.002 0.04 56.8 1.9 23
--------- --------- ------------------------- ------ ------ -------- ------ ------
68 MHO-07 In-situ Breccia 0.064 0.31 1890 5.7 11
--------- --------- ------------------------- ------ ------ -------- ------ ------
70 MHO-08 In-situ Qz Vein 0.039 0.2 353 8.6 22
--------- --------- ------------------------- ------ ------ -------- ------ ------
71 MHO-09 In-situ Qz Vein 0.198 0.38 82.4 48.5 6
--------- --------- ------------------------- ------ ------ -------- ------ ------
Shear zone hosting
sulphide rich
72 MHO-10 vein 0.064 0.38 1730 13.2 13
--------- --------- ------------------------- ------ ------ -------- ------ ------
73 MHO-11 Boulder 0.123 0.51 52 28.8 59
--------- --------- ------------------------- ------ ------ -------- ------ ------
Afon Gain
-----------------------------------------------------------------------------------------
839 AG_001 Spoil Heap 0.006 0.57 1420 13.1 11
--------- --------- ------------------------- ------ ------ -------- ------ ------
840 AG_002 In-Situ Vein 0.125 9.83 8720 795 242
841 AG_003 Spoil Tip 0.143 33.7 11150 42500 23900
--------- --------- ------------------------- ------ ------ -------- ------ ------
842 AG_004 Spoil Tip 2.43 15 12200 159 383
--------- --------- ------------------------- ------ ------ -------- ------ ------
843 AG_005 In-situ Vein 0.01 1.2 727 168.5 135
--------- --------- ------------------------- ------ ------ -------- ------ ------
81 AG_006 Spoil Tip 1.62 12.45 8630 143.5 266
--------- --------- ------------------------- ------ ------ -------- ------ ------
82 AG_007 Spoil Tip 0.532 21.2 39600 28.5 400
--------- --------- ------------------------- ------ ------ -------- ------ ------
83 AG_008 In-situ Vein 0.005 0.45 423 6.0 16
--------- --------- ------------------------- ------ ------ -------- ------ ------
Caerwych
--------- --------- ------------------------- ------ ------ -------- ------ ------
74 CRW-01 Spoil Heap 0.018 1.73 13350 96.4 159
--------- --------- ------------------------- ------ ------ -------- ------ ------
75 CRW-02 Spoil Heap 0.016 4.63 2790 321 442
--------- --------- ------------------------- ------ ------ -------- ------ ------
76 CRW-03 Spoil Heap 0.037 4.88 29200 31.8 50
--------- --------- ------------------------- ------ ------ -------- ------ ------
In-situ Hanging
77 CRW-04 Wall 0.009 1.69 2170 30.6 604
--------- --------- ------------------------- ------ ------ -------- ------ ------
78 CRW-05 In-situ Qz Vein 0.009 0.33 1080 4.4 171
--------- --------- ------------------------- ------ ------ -------- ------ ------
79 CRW-06 In-situ Qz Vein 0.004 0.28 805 109 42
--------- --------- ------------------------- ------ ------ -------- ------ ------
80 CRW-07 In-situ Qz Vein 0.003 5.04 387 2530 4320
--------- --------- ------------------------- ------ ------ -------- ------ ------
Carndochan Gold Mine
-----------------------------------------------------------------------------------------
84 CCD-01 Spoil Heap 0.001 22.2 517 4390 552
--------- --------- ------------------------- ------ ------ -------- ------ ------
85 CCD-02 Spoil Heap 20.6 27.1 38.1 11750 2570
--------- --------- ------------------------- ------ ------ ------ -------- ------
86 CCD-03 Spoil Heap 0.392 5.65 21.4 1780 16250
--------- --------- ------------------------- ------ ------ -------- ------ ------
Clogau-St David's Gold Mine - Update on Water Discharge
Application
The Company is pleased to provide an update further to the
announcement on 1 November 2021, which reported that Natural
Resources Wales ("NRW") had given notice of its refusal of the
Company's application requesting the grant of an environmental
permit for a water discharge activity to allow treated mine water
from the Llechfraith Shaft to discharge to the River
Cwm-Llechen.
Subsequent constructive discussions between Alba management and
NRW have clarified the key points which led to the refusal
decision. The Company is therefore working to update its
submissions to provide certain additional information, with a view
to a further consideration of the Company's application rather than
the Company having to go through a formal appeal process. Further
material updates will be provided as and when they are
available.
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
Mineralisation: Any single mineral or combination of minerals
occurring in a mass, or deposit, of economic interest. The term is
intended to cover all forms in which mineralisation might occur,
whether by class of deposit, mode of occurrence, genesis or
composition.
Quartz vein: A sheet-like body consisting predominantly of the
mineral quartz, which is known to host gold mineralisation in the
Dolgellau Gold Belt.
Panned Drainage Sample: A sample of sediment collected from a
river that has been panned to produce a heavy mineral concentrate
that can then be sent for analytical assay.
Geochemical Anomaly: A sample that contains a notably high
concentration of an element (in this case Gold) that stands out
from the concentrations in other samples in a campaign.
Mineral abbreviations
Au: Gold
Ag: Silver
Cu: Copper
Pb: Lead
Zn: Zinc
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.
ENDS
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
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.
All activities and timelines in this announcement are subject to
the timely receipt of regulatory and other third-party consents and
to the timely availability of contractors, plant and equipment.
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.
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%
----------- ----------
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