Alba Min Res PLC - Operational Update and Portfolio Review
Released
Released
Announcement PDF
RNS Number : 8143J
Alba Mineral Resources PLC
21 August 2019
Alba Mineral Resources plc
("Alba" or the "Company")
Operational Update and Portfolio Review
Alba Mineral Resources plc (AIM: ALBA), the diversified mineral exploration and
development company, provides this update on operations and on the
outcome of the Board's recent review of the Company's asset and investment
portfolio.
Highlights
·
·
·
The Company has completed a review of its asset and investment portfolio.
The focus of activities for the remainder of 2019 will be the next phase of
field work at Clogau as well as technical studies to refine products and
markets for Amitsoq and TBS.
Preparations for an underground exploration programme at Clogau are
underway.
Alba's Executive Chairman, George Frangeskides, commented:
"After the excellent results we have announced at Clogau over the past 12 months,
which have reinforced that project's enormous potential, it should come as no
surprise that one outcome of Alba's recent review is that Clogau should continue to
be a focus of the business moving forward."
"Our overriding objective will be to continue to deploy the Company's funds towards
the fast-tracking of those of our assets that can most quickly move into the
development and production phases, as that is where Alba will be able to make
significant returns for shareholders, with cash-flow generated either from production
or, if the right opportunity arises, by selling an asset for a multiple of our total
exploration spend."
Outcome of Review of Asset and Investment Portfolio
The Board of Alba has recently carried out a review of the Company's mining
assets and oil & gas investments. The results of the Board's review will be
outlined in greater detail in the Company's interim results (scheduled for
release in the week commencing 26 August 2019) but may be summarised as
follows:
·
The focus of the review was on assessing progress across the Company's
project portfolio with a view to determining those assets with the greatest
potential to achieve material returns for Alba within the shortest
timeframe.
·
The outcome of the review is that those assets currently are Clogau,
Amitsoq, Thule Black Sands ("TBS") and Horse Hill.
·
The focus of field work for the remainder of 2019 will be on Clogau, while
the focus of technical studies will be on refining products and markets at
Amitsoq and TBS.
·
The Company is open to external investment into Alba's Greenland asset
portfolio, with a view to substantially derisking one or more of those
projects while retaining a material stake in the upside.
·
In the meantime, while Alba will not be in the field in Greenland during the
current field season, the Company will in due course reassess the
conditions for undertaking field work at one or more of our sites next year.
·
At Horse Hill, regardless of whether Alba resolves to continue to decline to
fund future cash calls relating to that project (see further our
announcement of 18 June 2019), Alba's investment in Horse Hill remains a
near-term cash-generative opportunity for the Company. As such, Alba is
open to either retaining its stake in the project through to production,
when material oil sales revenues should be generated, or to giving serious
consideration to any third-party offer received prior to production which
properly reflects the inherent value of Alba's stake.
Operational Update
Clogau Gold Project
The Company provided a detailed update in relation to the Clogau Gold Project
by its RNS issued on 6 August 2019.
Following the completion of certain in-mine safety works, Alba is currently in
preparation for the commencement of underground exploration within the
Clogau-St David's mine, involving mapping and bulk-sampling. Subject to
receipt of final approvals, Alba will undertake the first phase of this work at the
Tyn Y Cornel adit level. The programme, targeting areas of broken stock and
floor material amassed from previous periods of mining, will allow for the
sampling of prospective zones within the mine and also stockpile material for
future processing and metallurgical testwork.
Amitsoq Graphite Project
The Company has contracted process engineering consultancy Southern Cross
Mining Limited (SCM) to design and supervise a mineralogy and process study
on the Amitsoq and Kalaaq graphite deposits. The primary objective of the
programme is to assess the conditions for recovering a high purity graphite
product size. The work is being undertaken at Geolabs Global Propriety Limited
in Johannesburg, with assistance from other laboratories in the UK and South
Africa.
The programme is designed to concentrate graphite via flotation and diagnose
misclassification during the flotation process. This will be achieved using
petrographic analysis, bench-scale flotation and stereomicroscopic inspection
of flotation concentrate and tailing streams. The final flotation product will then
be refined in bench-scale gangue leaching trials.
Limerick Base Metals Project
Following completion of a drill programme at Limerick, it was announced on 18
June 2019 that while no visible mineralisation was intersected, favourable
geology was encountered. The drill core has since been subjected to detailed
examination, including by hand-held Niton analyser, however as anomalous
values were not detected, it was decided not to send the drill core to a
laboratory for assaying.
The Company will consider further drilling to the north of the licence, in
proximity to historic drill hole TC-3824-003 which intersected a mineralised
zinc section.
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.
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
Cairn Financial Advisers LLP (Nomad)
James Caithie / Liam Murray
+44 20 3907 4297
+44 20 7213 0880
First Equity Limited (Broker)
Jason Robertson
+44 20 7374 2212
Yellow Jersey PR (Financial PR/ IR)
Tim Thompson / Harriet Jackson / Henry Wilkinson
alba@yellowjerseypr.com
+44 77 1071 8649
Alba's Project & Investment Portfolio
Project (commodity)
Location
Ownership
Amitsoq (graphite)
Greenland
90%
Clogau (gold)
Wales
90%
Inglefield (copper, cobalt, gold)
Greenland
100%
Limerick (zinc-lead)
Ireland
100%
Melville Bay (iron ore)
Greenland
51%
TBS (ilmenite)
Greenland
100%
Brockham (oil)
England
5%
Horse Hill (oil)
England
11.765%
Mining Projects
Oil & Gas Investments
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the
Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions
relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com or visit www.rns.com.
END
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