Alba Mineral Resources (ALBA ) announced that it has successfully completed Phase 2 drilling operations at the Company’s Thule Black Sands Project in northern Greenland. 

Specifically, Alba’s subsidiary White Eagle Resources Ltd ("White Eagle") has now completed its planned drilling programme at the Thule Black Sands Licence, with the aim of the operation to expand and upgrade the resources defined during the 2018 drilling campaign.  

The Company told investors that every drill hole it has completed as part of the operation “penetrated the permafrost” and that as a result, the Group expects this to have a positive impact on the overall level of resources that we will be able to declare at the project. 

Alba said 249 holes were completed for 550 metres, nearly double the planned 125 holes. Depths of mineralised sand reached up to 6m in some places, with average depths of 2.2m.  

Figure 1: Southern Licence Area showing planned drill fences. 

(Source: Alba Mineral Resources) 

Alba explained that once the drill samples from this Phase 2 programme have been assayed, the independent competent person will commence their resource estimation work.  
While the higher-grade southern portion of the licence has now been comprehensively drilled, there remains further upside potential in the central and northern areas and Alba intends to cover these areas with the same extension drilling during next year's field season. 

“While we have now comprehensively drilled the higher-grade southern portion of the licence, there remains further upside potential in the central and northern areas which we intend to tackle in the same way during next year's drilling season,” said COO, Mark Austin.  

Figure 2: White Eagle’s tractor-mounted Sonic Drill on the coastal plain with the Dundas Mountains in the background. 

(Source: Alba Mineral Resources) 

Austin said a significant upgrade in the defined resources at TBS will enable Alba to move forward with scoping level studies to assess the economic exploitation of the project. 

He also noted that a significant upgrade would allow Alba to plan for the EIA/SIA work which will need to be completed in 2022 as a precursor to an application for a mining licence 

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In recent weeks, Alba told investors that it had identified a new high-grade regional gold target within the group’s exploration licence area close to the Gwynfynydd Gold Mine in Wales.    

The discovery was made during a recent field exploration made by Alba over a gold target in the extensive exploration licence area which lies close to the Gwynfynydd Gold Mine.   

Alba is planning to undertake a follow-up field campaign of mapping and bedrock sampling in August 2021, which will aim to identify further examples of mineralisation and to better constrain the structures that are potentially critical for both styles of mineralisation.  

Meanwhile, Alba also gave investors an update on its plan to divest its Greenland assets, namely the Amitsoq, TBS, Melville Bay and Inglefield Projects, into a separate vehicle.    

As outlined in May 2021, subject to regulatory approval, the Company’s separate vehicle, which is also referred to as “New Listco”, will seek to be admitted to trading on AIM.     

New Listco will acquire the Greenland Projects from Alba for shares, and simultaneously with the listing New Listco will undertake an Initial Public Offering fundraising to secure the necessary working capital to fast-track the development of the Greenland Projects, it noted.    

In addition, Alba's recently proposed Greenland-focused, spin-out company will enable it to form a new vehicle that could unlock ‘real and sustained value’ across its Greenland projects which the company views as being ‘materially undervalued’ within its current asset portfolio.     

As part of the Spin-Out Transaction, Alba will receive New Listco shares valued on IPO at around £6 million, resulting in Alba becoming the majority shareholder of New Listco.    

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