[source: Alba Mineral Resources]

Alba Mineral Resources (ALBA ) said it has successfully completed drilling operations at the Amitsoq Graphite Project which has confirmed the presence of two significant intersections. 

Alba said its subsidiary, Obsidian Mining Limited, has now completed its planned diamond-drilling programme at the Amitsoq Island deposit, which forms part of the Amitsoq Graphite Project, with the aim of establishing a maiden Mineral Resource at the project’s site. 

The Group said the drilling operations have confirmed the existence of two significant and laterally continuous graphite horizons, thereby confirming Alba's existing geological model. 

All completed drillholes intersected either the Upper Graphite Layer ("UGL") or Lower Graphite Layer ("LGL"), or both. Several graphite intersections were ‘considerably thicker’ than expected from the modelling, up to 8.19m in the UGL and up to 15.54m in the LGL. 

Mark Austin, Alba's COO, said the thick graphite intersections encountered at the Amitsoq project were “well in excess” of what the firm had projected from its structural modelling. 

He said the condition of the old mine workings will be “an important factor” as Alba moves towards the long-term development of this “very high-grade graphite project.” 

Meanwhile, Alba said a follow-up mapping and ground geophysical survey of the Kalaaq graphite deposit has been completed on the mainland section of the Amitsoq licence area. 

During the programme, the team excavated two trenches, revealing graphite zones.  

The Kalaaq area contains multiple horizons of graphite mineralisation that are interpreted to have been subject to complex folding.  Average grades from sampling conducted at Kalaaq are 25.6% TGC, which are also among the highest of any project in the world, Alba noted. The results of the programme will be used to refine drill targets at Kalaaq, it added. 

"We will be sending the drill core to an accredited laboratory for assaying as soon as possible. The assay results will then be handed over to the independent competent person to assist in his resource estimation work,” added Austin. 

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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. 

In July 2021, Alba noted that the Phase 2 Drilling Programme had commenced at the Company's wholly owned Thule Black Sands Ilmenite Project in northern Greenland.  

The London-listed exploration company said it is seeking to drill 125 holes for up to 1,000 m with the aim of substantially increasing the existing JORC Mineral Resource at the project.   

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.   

Reasons to Follow ALBA

Alba Mineral Resources is a well-diversified exploration and development company which owns and operates mining projects in Greenland, Wales and Ireland. Its strategy is to identify and secure undervalued assets with a diversified commodity mix where there is potential for discovering further unexploited resources alongside the existing mine site.      

Limerick Base Metals Project      

Historically, only eight drillholes have been completed within Alba’s Project area of the Limerick Base Metals Project, the most recent being the three holes drilled in Q2 of 2019.      

Alba said these low levels of drilling are unusual in the Irish context and, for this reason, the area is considered under-explored. Alba has previously identified a number of attractive targets that have never been drilled before.       

Alba’s current technical team, led by Mark Austin, Alba’s COO and Senior Geologist, will undertake a comprehensive review of the licence area before determining the next phase of planned exploration activities.       

The expenditure conditions attached to the renewal of PL 3824 require Alba to incur expenditure of €15,732 by 26 May 2021 with a further €50,000 to be spent by 26 May 2022.        

JORC Resources expected      

Despite losing field time to the COVID-19 pandemic, Alba said it is in a position to execute one of the most significant underground work programmes seen for several decades at its Clogau gold mine in Wales, just as the commodity is reaching all-time highs in value.         

Alba said its mining projects remain on ‘a sound footing’, with JORC resources at both Thule Black Sands and Melville Bay, and plans to drill a maiden JORC resource at Amitsoq in 2021.  

Amitsoq      

In recent weeks, Alba said an independent testwork programme at the Group’s Amitsoq graphite project in southern Greenland has confirmed ‘very high carbon content.’ Due to the high carbon content, the product would offer ‘a significant advantage, as no purification would be needed to achieve that level,’ the Company explained to investors.      

Accordingly, subject to certain follow-up testwork which the Group said is recommended, the testwork successfully indicates the suitability of Amitsoq graphite as feed material for Lithium-Ion Batteries ("LIBs"), the fastest growing market for flake graphite globally.       

‘This finding that the concentrate appears to be suitable for LIBs is significant, as the market for LIBs is the fastest growing market for flake graphite, with massive growth rates forecast for the next decade due to the expected demand for LIBs in electric vehicles,’ Alba outlined.      

Transition from Exploration to Production in Greenland and Wales      

Other ‘significant’ progress has also been made in recent years towards Alba’s ultimate goal of achieving commercial production at one or more of its sites, including at the Thule Black Sands in Greenland, the Amitsoq project in Greenland and the Horse Hill well in Surrey.       

In 2020, Alba announced that surface trenching activities would kick-start over the first of the group’s 10 regional gold targets over the Dolgellau Gold Field.        

The trenching will target the first of 10 separate new gold targets over the Dolgellau Gold Field which have previously been identified by Alba.        

Alba said up to eight trenches have been planned in this first phase, each varying in length from 40-90m for a total of 575m, with each trench being 1m wide and up to 2m deep.       

Once exposed, the quartz veining and other structures from the trenches, those of which are pictured below, will be sampled, and those samples sent to a laboratory for assaying.      

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