REG - Alba Mineral Resrcs. - Clogau Gold Mine Update

Alba Mineral ResourcesAnnouncement

26/03/2024 07:15

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RNS Number : 2401I  Alba Mineral Resources PLC  26 March 2024

Alba Mineral Resources Plc / EPIC: ALBA / Market: AIM / Sector: Mining

26 March 2024

Alba Mineral Resources Plc

("Alba" or the "Company") 

 

Clogau Gold Mine Update

Exceptionally High Gold Grades Confirmed of up to 4.30 oz/t

Alba Mineral Resources Plc (AIM: ALBA) is delighted to report on exceptionally
high-grade sampling results returned from No.4 Level at the Lower Llechfraith
workings (the "Llechfraith Target"), Alba's principal gold target at the
Company's 100% owned Clogau-St David's Gold Mine in north Wales ("Clogau" or
the "Mine").

Key Points

·     Alba has taken more than 40 samples from No.4 Level at the
Llechfraith Target, and all have been put through the Company's Gravity
Processing Plant to produce heavy mineral concentrates.  Composites of the
concentrates were then sent to a third-party refining facility.

 

·     These composites have now returned exceptional gold grades:

 

o  From Composite 1: 3.1 grams of gold were recovered from 49.2 kg of sample
(dry weight), equating to a back-calculated head grade of 89.15 g/t or 2.87
troy ounces per tonne (oz/t).

 

o  From Composite sample 2: 3.2 grams of gold were recovered from 34.4 kg of
sample (dry weight), equating to a back-calculated head grade of 111.63 g/t or
3.59 oz/t.

 

o  From Composite sample 3: 4.0 grams of gold were recovered from 36.9 kg of
sample (dry weight), equating to a back-calculated head grade of 133.73 g/t or
4.30 oz/t.

 

·     The Company is greatly encouraged by the fact that these high
grades are from ore that did not contain visible gold and is interpreted as
being part of the background gold population.

 

·     Further, the fact that these grades were obtained from shallow chip
sampling on a level that has previously been mined suggests that further and
more extensive sampling on No.4 Level is merited. As No.4 Level is immediately
accessible, this sampling can proceed without delay.

 

·     While the planned bulk sampling within the extension to the
Llechfraith Payshoot below No.4 Level (see the RNS of 22 March 2024) will
target "bonanza" type grades of the kind found in previous periods of mining
at Clogau, if the grades encountered on No.4 Level to date are replicated more
extensively, this is expected to significantly strengthen the economic case
for reopening the mine for commercial production.

 

·     There are also historic piles of broken ore on No.4 Level that have
been left in situ by previous operations. These piles represent a potential
gold processing opportunity in advance of any planned new development.

George Frangeskides, Executive Chairman, commented:

"These are extraordinarily good results from No.4 Level. Whereas most gold
projects measure results in grams per tonne, these grades can be measured in
ounces per tonne.

"We always knew there was serious potential for finding high-grade gold at
Clogau. But after all the challenges we have faced over the past few years in
gaining access to our No.1 target within the mine, to now have that high-grade
potential finally confirmed by actual results is extremely heartening.  We
now look forward to the forthcoming bulk sampling on and below No.4 Level with
a great deal of confidence and no little excitement."

Details

As reported on 22 February 2024, the Company recently took more than 40
samples from No.4 Level at the Llechfraith Target. All of those samples have
been put through the Company's Gravity Processing Plant to produce heavy
mineral concentrates. Three composites of these concentrates were sent to a
third-party refining facility to determine their gold content. The results are
reported in Table 1. Figure 1 shows the location of the samples.

From Composite sample 1, 3.1 grams of gold were recovered from 49.2 kg of
sample (dry weight). This equates to a concentrate gold grade of 1,325.92 g/t
and a back-calculated head grade of 89.15 g/t or 2.87 oz/t.

From Composite sample 2, 3.2 grams of gold were recovered from 34.4 kg of
sample (dry weight). This equates to a concentrate gold grade of 1,136.77 g/t
and a back-calculated head grade of 111.63 g/t or 3.59 oz/t.

From Composite sample 3, 4 grams of gold were recovered from 36.9 kg of sample
(dry weight). This equates to a concentrate gold grade of 1,469.51 g/t and a
back-calculated head grade of 133.73 g/t or 4.30 oz/t.

One grab sample of loose floor material was also sent for testing. This did
not return a material gold grade.

Table 1: Composite Sample Results

(figures rounded to two decimal places)

                                       Sample ID                   Total samples dry mass (kg)                                      Total Conc Dry Mass sent to refiner (kg)  Gold content (g)  Conc gold grade (g/t)  Channel samples grade (g/t)

 Sample

                                                                                                Total Conc Dry Mass produced (kg)

           Sample Type

 Sample 1                              4927-4931, 4933-4942        49.20                                                                                                      3.1               1,325.92               89.15

           Composite of chip samples                                                                                                2.34

                                                                                                3.31
 Sample 2                              4945-4947, 4949-4953, 4968  34.40                                                            2.82                                      3.2               1,136.77               111.63

           Composite of chip samples                                                            3.38

 Sample 3                              4954-4961, 4966-4967, 4974  36.90                                                            2.72                                      4.0               1,469.51               133.73

           Composite of chip samples                                                            3.36

 

Figure 1: Location of samples taken from No.4 Level. Composite samples 1-3 are
respectively circled in yellow and labelled with the back-calculated head
grade for those samples.

The Company is greatly encouraged by the fact that these grades are from ore
that does not contain visible gold and are interpreted as being part of the
background gold population. Historic periods of mining reputedly relied on the
discovery of "bonanza" type occurrences grading in the 10s to 100s of ounces
per tonne, bonanza grades which the Company will be seeking in the forthcoming
bulk sampling of the previously unmined target zones below No.4 Level.
However, if the elevated grades confirmed to date on No.4 Level can be
repeated more extensively, this is expected to significantly strengthen the
economic case for reopening the Clogau mine for commercial production. This
view is strengthened, of course, by the fact that the gold price currently
sits at record highs (US$2166/oz as of 22 March).

Further sampling on No.4 Level is planned in the short term to follow up and
build on these results. In addition, bulk sampling is planned to be rolled out
over the next few months below No.4 Level (see the Alba RNS of 22 March 2024).
There are also historic piles of broken ore on No.4 Level that have been left
behind by previous operations. These piles represent a near-term processing
opportunity which can be undertaken before any planned new development takes
place.

The Company is also of the view that these results demonstrate that Alba's
refined Gravity Processing Plant operations have demonstrated their capacity
for processing input ore from Clogau into high-grade concentrate material.

 

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.

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. Actual results achieved may vary from the information provided herein
as a result of numerous known and unknown risks and uncertainties and other
factors.

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 40 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.

 

**ENDS**

For further information, please visit www.albamineralresources.com
(http://www.albamineralresources.com/)  or contact:

 Alba Mineral Resources plc                 +44 20 3950 0725

 George Frangeskides, Executive Chairman
 SPARK Advisory Partners Limited (Nomad)    +44 20 3368 3555

 Andrew Emmott
 CMC Markets plc (Broker)                   +44 20 3003 8632

 Thomas Smith / Douglas Crippen

 

 

 Alba's Projects & Investments
 Projects Operated by Alba          Location   Ownership
 Clogau (gold)                      Wales      100%
 Dolgellau Gold Exploration (gold)  Wales      100%
 Gwynfynydd (gold)                  Wales      100%
 Investments Held by Alba           Location   Ownership
 GreenRoc Mining Plc (mining)       Greenland  37.49%
 Horse Hill (oil)                   England    11.765%

 

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