[source: Alba Mineral Resources]
In its results for the period ended 31 November 2021, Alba Mineral Resources (ALBA) told investors that it is focused on ensuring 2022 builds on the successes it has had over the past few years “with multiple exploration and development programmes underway or planned.”
The company’s net assets increased to £12.9m over the period from £10 million at last year end. The assets of GreenRoc Mining - which Alba spun out during the year to fast-track the development of its advanced graphite and ilmenite projects - are retained at book valuation.
This refers to the capitalised exploration spend to date, not taking account of the “market” valuation uplift arising whenGreenRoc purchased its Greenland projects for £6m, it said.
additions of £2.6m, the majority being cash outflows. Alba said the spend here was principally on drilling and other exploration at the Clogau-St David’s Gold Mine in Wales, as well as in two field programmes in Greenland which were planned, executed and part funded by Alba before they were passed on to GreenRoc.
Cash and cash equivalents as at 31 December 2021 stood at £3,948m, up from £1,512m.
Around 3,500 metres of drilling has been undertaken from surface and underground since 2018 at the Clogau-St David’sGold Mine, with around just under half of this done in 2021.
Drilling at the mine resulted in the identification of high-priority development targets, including discovery of Upper Lode in Llechfraith Payshoot and New Branch Lode in Main Lode System.
Discussions are no ongoing with Natural Resources Wales to dewater the Llechfraith Shaft.
The waste tip at Clogau returned elevated gold grades of up to 9.89 g/t from initial sampling programme in June 2021 and up to 11.35 g/t from bulk sample taken post year end, and around up to 4,000 tonnes of fine material could be available for processing from waste tip.
At the Dolgellau Gold Exploration Project, Alba was granted an additional exclusive mineral exploration licence for a further six years. The company has now refined an existing regional geological model of the project into six primary gold targets for a follow-up investigation.
Meanwhile, the company said the Limerick Base Metals Project is also gaining traction as it moves into 2022. TO date, Alba has already identified three principal exploration target areas for follow-up exploration activities with exploration drilling planned to commence H2 2022.
Additionally, Alba undertook work comprising digitisation of a mine plan and 3D modelling, stream sediment sampling, and data compilation at the Gwynfynydd Gold Mine in FY21.
Alba has reiterated the progress made by its investee companies, namely GreenRoc Mining in which it holds 54% interest and which is developing critical mineral projects in Greenland.
GreenRoc’s admission to AIM in 3Q21 saw it raise over £5 million (before costs). As part of this, Alba disposed of its four Greenland projects to GreenRoc for £6 million in shares, against a book value of £2.7 million, such that Alba now owns 54% majority stake in GreenRoc.
The spin-out has created a Greenland-focused vehicle with the sole purpose of fast-tracking GreenRoc’s advanced graphite and ilmenite projects through development and production.
Since its inception, GreenRoc has declared a maiden resource at the Amitsoq Island Deposit of 8.28 Mt at an average grade of 19.75%, giving a total graphite content of 1.63Mt. It has also completed Phase 2 drilling at Thule Black Sands Ilmenite Project, where a significant upgrade in existing Mineral Resource is expected, and been granted a full production permit at the Horse Hill Oil Field which will enable the company to drill further development wells.
Alba said it continues to evaluate potential new projects to strengthen its portfolio, while the Board anticipates a steady stream of news flow from its investee companies, principally GreenRoc, as it fast-tracks the development of its projects in the critical minerals space.
“The need for Britain, Europe and the US to ensure ongoing security of supply of critical natural resources and to phase out overreliance on any one producer state, is set to become ever more pressing in the months and years ahead. Our focus on near-term projects in safe jurisdictions with multiple follow-up targets, access to existing infrastructure and relatively short timelines to achieving value-enhancing development milestones has served us well.”
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Alba’s most significant financial event during the year to 30 November 2021 was the group reorganisation and IPO to create the new Greenland-focused, AIM-listed, GreenRoc Mining.
As it owns 54% of the GreenRoc group after the IPO, GreenRoc group is fully consolidated within Alba Group with a significant non-controlling interest arising in the balance sheet.
While its market valuation cannot be reflected in the balance sheet of the new Group (as it is treated as intragroup profit and eliminated from the accounts), Alba outlined that the benefits of the transaction are clear with a cash injection of £5m from the IPO to progress its projects.
With recent events in eastern Europe, Alba says the need for Britain, Europe and the US to ensure ongoing security of supply of critical natural resources and to phase out overreliance on any one producer state, will become ever more pressing in the months and years ahead.
As a result, the company intends to build on its efforts to develop near-term projects in safe jurisdictions with “multiple follow-up targets, access to existing infrastructure and relatively short timelines” to achieve value-enhancing development milestones in 2022 and beyond.
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