REG - Alba Mineral Resrcs. - GROC:Near Three Times Increase in Amitsoq Resource

Alba Mineral ResourcesAnnouncement

23/01/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230123:nRSW4728Na&default-theme=true

RNS Number : 4728N  Alba Mineral Resources PLC  23 January 2023

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

 

23 January 2023

Alba Mineral Resources Plc

("Alba" or the "Company") 

 

GROC Update

Amitsoq Graphite Project Update

Nearly Three Times Increase in Mineral Resource Estimate

 

Alba Mineral Resources Plc (AIM: ALBA) is pleased to note the announcement
today by its portfolio company, GreenRoc Mining Plc ("GreenRoc") (AIM: GROC),
of a very substantial increase to the mineral resource estimate ("Resource")
at the Amitsoq Graphite Project in southern Greenland ("Amitsoq" or the
"Project").  Alba holds a 50.6% majority interest in GreenRoc.

 

Alba's Executive Chairman, George Frangeskides, commented: "This near
threefold increase in the Resource for the Amitsoq Island Deposit, with the
total graphite content rising from 1.63Mt to 4.71Mt, is a remarkable result.
Further, the revised average Resource grade of 20.41% C(g) puts Amitsoq in a
very select group of just two advanced graphite projects globally which have
average grades of more than 20% C(g), the other one being the Vittangi deposit
owned by Talga Group (ASX: TLG, market cap: A$560 million).

 

"This substantially upgraded Resource will underpin the feasibility studies
GreenRoc will be carrying out this year as it moves towards a Mining Licence
application for Amitsoq.  Allied to the confirmation just a few days ago that
GreenRoc's purification test work has exceeded the 99.95% minimum purity level
required for EV batteries, it puts us in a strong position as we seek to
progress discussions with interested industry and offtake partners in the
coming months."

 

The GreenRoc announcement is set out below without material changes.

 

 

GreenRoc Mining plc

("GreenRoc" or the "Company")

 

Amitsoq Graphite Project Update

Nearly Three Times Increase in Mineral Resource Estimate

Appointment of Sole Broker

Relinquishment of Inglefield Land licence

 

GreenRoc Mining plc (AIM: GROC), a company focused on the development of
critical mineral projects in Greenland, is delighted to announce a very
substantial increase to the mineral resource estimate ("Resource") at the
Amitsoq Graphite Project in southern Greenland ("Amitsoq" or the "Project"),
which has been confirmed as one of the highest-grade graphite deposits in the
world.

 

GreenRoc is also pleased to announce that, effective today, S.P. Angel
Corporate Finance LLP ("SP Angel") has been appointed as sole broker to the
Company.

 

Highlights

 

·   The 2023 Mineral Resource Estimate ("2023 MRE") comprises a total
inferred, indicated and measured JORC Resource for the Amitsoq Island Deposit
of 23.05 million tonnes (Mt) at an average grade of 20.41% Graphitic Carbon
("C(g)"), giving a total graphite content of 4.71 Mt.

 

·      The 2023 MRE:

o  represents a Resource with almost three times the tonnage from the 2022
Maiden Resource Estimate (the "2022 MRE"), with the contained graphite
increasing by 3.08 Mt from the 2022 MRE, an increase of ca. 180%; and

o  cements Amitsoq's position as one of the very highest-grade graphite
deposits globally, with an average grade of 20.41% C(g) (up from 19.75% C(g)).

 

·     The Amitsoq Island Deposit remains open along strike
(predominantly to the north) and down dip to the west, indicating the
potential for further significant Resource upgrades in the future.

 

·      Every Resource category has increased substantially:

o  The upgraded Resource now includes 1.26 Mt of Measured Resource, this
being the highest confidence pre-Reserves category.

o  The Indicated Resource has increased from 2.04 Mt to 6.12 Mt (a 200%
increase over the 2022 MRE).

o  The Inferred Resource has increased from 6.24 Mt to 15.67 Mt (a c150%
increase over the 2022 MRE).

 

·    One third of the contained graphite in the 2023 MRE now falls within
the higher Measured and Indicated categories, an important validation of the
Project fundamentals as GreenRoc moves this year into the development phase
and into further discussions with interested customers and offtake partners.

 

·      The 2023 MRE incorporates the results of the extensive Phase 2
drilling programme at the Amitsoq Island Deposit which was completed in
September 2022.

 

GreenRoc's CEO, Stefan Bernstein, commented:

 

"To deliver a resource update of this quantum and grade is a huge achievement
for GreenRoc and underpins our confidence that our Amitsoq project meets the
fundamental requirements to become a mine.  Furthermore, we believe we can
accelerate development in order to help meet the critical demand for new, high
grade and conflict-free graphite sources and we look forward to providing
further updates in relation to interested customers and offtake partners in
due course.

 

"A JORC compliant resource of over 23 million tonnes at more than 20%
graphitic carbon is a fantastic result particularly after having completed
only two drilling seasons. Of particular importance is that we now have
resource categories in both the Indicated and Measured categories, which imply
an important increase in certainty about the Amitsoq mineral resource size and
grade. Given that the deposit is open in at least two directions, there is
potential for even further expansion of the resource presented today.

 

"It is also a great pleasure for me to announce that from today, SP Angel will
act as sole broker for GreenRoc. SP Angel is a market-leading broker in the
mineral raw materials industry and has many decades of experience in minerals
projects all over the world. SP Angel publishes a daily newsletter typically
read by around 3,000 individuals across the exploration and mining industry,
investors, market analysts and politicians. We look forward to working
together."

 

Figure 1. Amitsoq Graphite Project in southern Greenland, showing Amitsoq
Island graphite deposit (site of the former graphite mine) and Kalaaq Deposit

 

Details

The 2022 MRE, being the maiden JORC Resource at the Amitsoq Island Project,
was declared in March 2022 based on 10 drill intersections drilled from three
drill pads along the island's ridge during Phase 1 drilling (2022 MRE shown in
Table 1). The 2023 MRE incorporates successful Phase 2 drilling completed in
September 2022, where mineable widths (more than 2.0m true thickness) of
graphite were present in eight intersections of the UGL and in all 19
intersections of the LGL, with graphite grades ranging from 13.52 to 24.52
Cg%. The assay results from the Phase 2 drilling programme were reported by
the Company on 22 December 2022.

 

The 2023 MRE for Amitsoq has delivered a Measured Mineral Resource of 1.26 Mt
at 22.05 % C(g) for 0.28 Mt of contained graphite, Indicated Mineral Resource
of 6.12 Mt at 21.04 % C(g) for 1.29 Mt of contained graphite, and an
additional Inferred Mineral Resource of 15.67 Mt at 20.04 % C(g) for 3.14 Mt
of contained graphite as follows (Tables 1-3; Figures 3 and 4):

 

Table 1. Mineral Resources Summary (comparison between 2022 and 2023 MREs)

 Mineral Resource Category   Tonnes (Mt)  Graphitic Carbon (%)  Graphite content (Mt)
 2022 MRE
 Measured                    -            -                     -
 Indicated                   2.04         20.65                 0.42
 Total Measured + Indicated  2.04         20.65                 0.42
 Inferred                    6.24         19.45                 1.21
 Total Resources             8.28         19.75                 1.63
 2023 MRE Update
 Measured                    1.26         22.05                 0.28
 Indicated                   6.12         21.04                 1.29
 Total Measured + Indicated  7.38         21.21                 1.57
 Inferred                    15.67        20.04                 3.14
 Total Resources             23.05        20.41                 4.71
 Notes:

 1.     The Mineral Resource is reported at a graphitic Carbon cut-off
 grade of 0 (zero) C(g)%.

 2.     Mineral Resource estimates are not precise calculations being
 dependent on the interpretation of limited information on the location, shape
 and continuity of the occurrence and on the available sampling results.
 Therefore, reporting of tonnage and grade figures reflects this relative
 uncertainty and figures are rounded to appropriate significant figures.  As a
 result, some error may be incurred when reporting global figures based on
 rounded values.

 3.     The Mineral Resource Statement presented above has been reported in
 accordance with the requirements of the 2012 edition of the Australasian Code
 for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC
 2012 Edition). The Competent Person who assumes responsibility for reporting
 of the Mineral Resource is Dr John Arthur who is a Competent Person as defined
 by the JORC Code 2012 Edition, having more than 5 years' experience that is
 relevant to the style of mineralisation and type of deposit described herein,
 and to the activity for which he accepts responsibility. The effective date of
 the Mineral Resource statement is 1 January 2023.

 4.     Resources are not constrained other than by the geological boundary
 limits of the mineralised unit.  At this stage no consideration has been made
 as to what tonnes and grade would be reasonably expected to be extracted
 profitably. Notwithstanding, the Competent Person considers the distance
 constraints in both the dip and strike directions to be a reasonable
 approximation and expectation of potential mining extents.

 5.     Mineral Resources which are not Ore Reserves do not have
 demonstrated economic viability.  The estimate of Mineral Resource reported
 may be materially affected by environmental, permitting, legal, title,
 taxation, sociopolitical, marketing, or other relevant issues.

 6.     The Inferred Mineral Resource in this estimate has a lower level of
 confidence than that applied to the Indicated Mineral Resource and must not be
 converted to a Ore Reserve.  It is reasonably considered that the majority of
 the Inferred Mineral Resource could be upgraded to an Indicated Mineral
 Resource with continued exploration.

 7.        Currently, no Ore Reserves have been established for the
 Amitsoq Project.

Figure 2. High-grade LGL intercept in AM-DD-038

 

Table 2 breaks down the 2023 MRE by graphite layer and Resource category. The
total resource includes a particularly high-grade contribution from the Lower
Graphite Layer of 16.88 Mt, at a grade of 21.51% for 3.634 Mt of contained
graphite, which accounts for more than 77 per cent.  of the total resource.

 

Table 2. Breakdown of Resources per Graphite Layer and comparison with 2022
MRE

 Mineral Resource Category  Tonnes (Mt)  Graphitic Carbon (%)  Graphite content (Mt)
 2022 MRE
 Upper Graphite Layer
 Indicated                  0.59         18.97                 0.111
 Inferred                   4.02         18.61                 0.748
 TOTAL UGL RESOURCE         4.61         18.65                 0.859

 Lower Graphite Layer
 Indicated                  1.45         21.32                 0.309
 Inferred                   2.22         20.97                 0.466
 TOTAL LGL RESOURCE         3.67         21.19                 0.775

 2023 MRE Update
 Upper Graphite Layer
 Indicated                  0.59         19.02                 0.112
 Inferred                   5.58         17.26                 0.963
 TOTAL UGL RESOURCE         6.17         17.43                 1.075

 Lower Graphite Layer
 Measured                   1.26         22.05                 0.277
 Indicated                  5.53         21.25                 1.176
 Inferred                   10.09        21.58                 2.178
 TOTAL LGL RESOURCE         16.88        21.51                 3.634

 

Table 3 displays the highly consistent nature of the graphite grades
intersected during Phase 1 + 2 drilling. The Measured Resource is unchanged
from a 0% cut-off grade to a 20.5 % cut-off grade. The Total Resource only
displays a marginal drop-off of Resources when using a 15 % cut-off grade.
This bodes well for the resilience of the deposit in the face of potentially
fluctuating graphite prices and operational cost profiles.

 

Table 3. Sensitivity Table

                      Mineral Resource Category
 Cut-Off Grade (Cg%)  Measured                                                    Indicated                                                   Inferred
                      Tonnes (Mt)  Graphitic Carbon (Cg%)  Graphite Content (Mt)  Tonnes (Mt)  Graphitic Carbon (Cg%)  Graphite Content (Mt)  Tonnes (Mt)  Graphitic Carbon (Cg%)  Graphite Content (Mt)
 Base Case            1.256        22.05                   0.277                  6.120        21.04                   1.288                  15.674       20.04                   3.141

 0% C(g)
 13.0%                1.256        22.05                   0.277                  6.120        21.04                   1.288                  15.627       20.06                   3.135
 15.0%                1.256        22.05                   0.277                  6.068        21.09                   1.280                  14.275       20.61                   2.942
 17.5%                1.256        22.05                   0.277                  6.005        21.14                   1.270                  12.976       21.06                   2.733

 

Figures 3, 4 and 5 show the extent of the Resource categories in plan and
cross-section views.

 

Figure 3. Plan view of UGL Resource categories; scale shown in metres

 

Figure 4. Plan view of LGL Resource categories; scale shown in metres

 

Figure 5. East-West Cross-section showing the relationship of the graphite layers and Resource categories (scale shown in metres)

 

Relinquishment of Inglefield Land exploration licence.

Given the recent advances of the Amitsoq graphite project and after an
assessment of the Company's licence portfolio, the GreenRoc board has decided
to relinquish exploration licence 2018-25 in Inglefield Land, North Greenland.
This licence is at a very early stage with a high degree of risk and the
Company wishes to concentrate efforts to advance the Amitsoq project to
production as fast as possible.

 

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 and
Mineral Resources has been reviewed by Dr John Arthur.  Dr Arthur is a Fellow
of The Geological Society of London and a Chartered Geologist (FGS CGeol no.
1005744) and 28 years' experience in the minerals and mining industry.

 

Dr Arthur 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. Dr Arthur consents to the inclusion in the announcement of the
matters based on his information in the form and context in which they appear.

 

Glossary

 

 Cut-Off                                           The minimum grade required for a mineral or metal to be economically mined (or
                                                   processed). Material found to be above this grade is considered to be ore,
                                                   while material below this grade is considered to be waste.
 Graphitic                                         of, relating to, resembling, or having the structure of graphite.
 Graphitic Carbon or Total Graphitic Carbon (TGC)  Carbon may be present in rocks in various forms including organic carbon,
                                                   carbonates or graphitic carbon. Carbon in rocks may be reported as fixed or
                                                   total carbon (i.e. organic carbon + carbon in carbonate minerals + carbon as
                                                   graphite) or as graphitic carbon or total graphitic carbon (or TGC) (i.e.
                                                   total carbon - (organic + carbonate carbon)).
 Indicated Resource                                Definition of mineral deposit at a reasonable level of confidence.
 Inferred Resource                                 Definition of mineral deposit at low level of confidence.
 JORC                                              The Australasian Code for Reporting of Exploration Results, Mineral Resources
                                                   and Ore Reserves ('the JORC Code') is a professional code of practice that
                                                   sets minimum standards for Public Reporting of minerals Exploration Results,
                                                   Mineral Resources and Ore Reserves.
 Maiden Mineral Resource Estimate                  The first resource estimate to be completed on a project.
 Measured Resource                                 Definition of a mineral deposit at a high level of confidence.
 Metallurgical Testing                             Metallurgical Testing typically uses microscopy to provide important
                                                   information about the structure and properties of metal and alloy samples.
 Reserve                                           A Reserve is the economically mineable part of a Measured Mineral Resource
                                                   and/or Indicated Mineral Resource
 Spherical graphite                                Used as the anode in lithium-ion batteries.  Natural flake graphite is first
                                                   purified and shaped into small spheres, at which point the material is
                                                   referred to a High Purity Spherical Graphite ("HPSG").  After shaping, the
                                                   natural flake graphite is purified by chemical leaching to remove impurities
                                                   and raise the carbon content to above 99.95% C.
 Strike                                            The direction and length of a geological feature (for example, a vein or rock
                                                   formation) measured on a horizontal surface.

 

**ENDS**

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

Alba Mineral Resources Plc  

George Frangeskides, Executive Chairman
+44 20 3950 0725 

 SPARK Advisory Partners Limited (Nomad)   

Andrew Emmott 
                  +44 20 3368 3555 

 OvalX (Broker)  

Thomas Smith
                 +44 20 7392 1494 

 St Brides Partners (Financial PR)  

Isabel de Salis / Catherine
Leftley
alba@stbridespartners.co.uk 

 

Alba's Projects and Investments

 Mining 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  50.6%
 Horse Hill (oil)                   England    11.765%

 

 

 

 

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDBTMLTMTTTBMJ