REG - Alba Mineral Resrcs. - Investee Company Update: GreenRoc Mining plc

Alba Mineral ResourcesAnnouncement

08/03/2022 07:00

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RNS Number : 9393D  Alba Mineral Resources PLC  08 March 2022

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Alba Mineral Resources plc

("Alba" or the "Company")

 

Investee Company Update: GreenRoc Mining plc

 

Alba Mineral Resources plc (AIM: ALBA) is pleased to note the announcement
today by its portfolio company, GreenRoc Mining plc ("GreenRoc") (AIM: GROC),
in which Alba holds a 54% majority interest.  Following on from Alba's
announcement on 3 December 2021 of the high-grade graphite drill intercepts
from the drilling programme at the Amitsoq Graphite Project in southern
Greenland, GreenRoc's announcement today reports on a significant maiden ore
resource for Amitsoq.

 

Alba's Executive Chairman, George Frangeskides, commented:

"We are absolutely delighted with the maiden mineral resource, which has been
announced for Amitsoq today.  This is the first significant milestone to be
achieved by GreenRoc since it was admitted to AIM late last year.  With a
revised mineral resource assessment for its Thule Black Sands project due in
the coming months and significant field and development programmes being
rolled out at both its flagship projects this summer, we are confident that
this is going to turn into a very strong year for GreenRoc."

 

The announcement by GreenRoc is set out below without material changes:

 

GreenRoc Mining plc

("GreenRoc" or the "Company")

 

Amitsoq Graphite Project Update

Declaration of Maiden Ore Resource

 

GreenRoc Mining plc (AIM: GROC), a company focused on the development of
critical mineral projects in Greenland, is delighted to announce a significant
maiden ore resource ("Maiden Resource") at the Amitsoq Graphite Project in
southern Greenland ("Amitsoq" or the "Project"), one of the highest-grade
graphite deposits in the world.

 

Highlights

·      A maiden combined Indicated and Inferred JORC Resource has been
defined at Amitsoq of 8.28 million tonnes (Mt) at an average grade of 19.75%,
giving a total graphite content of 1.63 Mt.

·      This includes a particularly high-grade contribution from the
Lower Graphite Layer of 3.67 Mt at a grade of 21.19%, for 0.775 Mt of
contained graphite.

·      This Maiden Resource confirms Amitsoq's position as one of the
highest-grade graphite deposits globally and supports the Company's objective
of fast tracking the Project into the development phase.

·      The total graphite content of 1.63 Mt outlined by the Maiden
Resource exceeds the upper end of the tonnage range in the previously declared
Amitsoq Exploration Target (which implied between 0.408 to 1.620 Mt of
contained graphite from the entire target area).

·      Over 25% of the contained graphite in the Maiden Resource falls
within the higher category of Indicated Resources, providing additional
confidence that a more significant, high-category Resource can be established
following the forthcoming Phase 2 drilling campaign.

·      Planning and procurement for the Phase 2 drilling campaign at
Amitsoq is well underway with appointment of contractors due to be finalised
this month.

·      The deposit is open along strike (predominantly to the north) and
down dip to the west, and this will be tested in the Phase 2 drilling
programme this year.

·      Metallurgical testing confirms that the Amitsoq graphite can be
upgraded to a more than 99.95% pure graphite product, which is the
specification requirement for EV lithium-ion batteries (the ultra-high growth
sector of the graphite market).

 

GreenRoc's CEO, Kirk Adams, commented:

"This Maiden JORC Resource launches GreenRoc into the global graphite resource
space with one of the highest-grade graphite projects in the world.  We now
find ourselves in a highly enviable position at Amitsoq following this
outstanding maiden result.

 

"A review of our peers in this sector reveals that deposits with compliant
resources above 20% contained graphite grade are scarce.  Most graphite
projects have average grades in single digit percentages and, according to
S&P Global, the average grade of graphite resources worldwide stands at
just 8.45%. The implication of our very high average grade at the Amitsoq
deposit should not be overlooked, since it reduces the cost of mining and
mineral production on a per tonne of concentrate basis, as well as reducing
the amount of waste per tonne of ore mined.

 

"We believe the consistency and true widths of the orebodies at the Amitsoq
deposit bode well for future mining and processing operations.  Furthermore,
it has been shown from previous metallurgical testing that this material can
be upgraded to a more than 99.95% pure spherical graphite product, which is
the requirement for EV batteries.  Global consumption of this type of high
purity spherical graphite is forecast to be at least 3 times higher by 2030,
and supply shortages are predicted in the near to medium term.  The projected
future need for high purity spherical graphite, driven by the explosive growth
in EV sales, is growing very rapidly.

 

"Despite the fact that more than half of the Exploration Target area for
Amitsoq Island remains undrilled, this Maiden Resource has already exceeded
the total resource tonnages predicted in that Exploration Target, as well as
surpassing the total contained graphite target for the area. GreenRoc is now
in the process of planning and procuring drilling services to drill out the
remaining extent of the Exploration Target area at the Amitsoq Island deposit
this summer.

 

"We are confident that the resource on Amitsoq Island will increase in both
tonnes and classification following this year's programme to the extent that
we hope to have the resource basis to undertake a detailed feasibility study
on the deposit.  We are also mindful of the additional considerable upside
potential still to come from the, as yet undrilled, Kalaaq Deposit to the
south of Amitsoq.

 

"In summary, I believe that this Maiden Resource confirms Amitsoq as one of
the leading graphite projects in the world, with both exceptional grades and
significant tonnes, and with more to come from the 2022 drilling campaign."

 

Details

The Maiden JORC Resource at the Amitsoq Island Project was calculated from 10
drill intersections drilled from three drill pads along the island's ridge, to
test the down-dip continuation of the Upper Graphite Layer ("UGL") and the
Lower Graphite Layer ("LGL"), which outcrop along the eastern face of the
island. The assay results from the drilling programme were reported by the
Company on 3 December 2021.

 

Further details in respect of the Resource are set out in Tables 1 and 2.

 

Table 1. Summary Table of Mineral Resources

 Mineral Resource Category   Tonnes (Mt)  Graphitic Carbon (%)  Graphite content (Mt)
 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
 Notes:

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

 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) ("JORC Code 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 1st
 March 2022.

 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 this, 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,
 socio-political, 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 in this
 estimate and must not be converted to an 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.

 

Table 2 breaks down the Resource by graphite layer and Resource category.

 

Table 2. Breakdown of Resources per Graphite Layer

 Mineral Resource Category  Tonnes (Mt)  Graphitic Carbon (%)  Graphite content (Mt)
 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

 

Table 3 displays the highly consistent nature of the graphite grades
intersected so far in the drilling. The Resource is unchanged from a 0%
cut-off grade to a 13% cut-off grade and 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            -            -                       -                      2.04         20.65                   0.42                   6.24         19.45                   1.21

 (0% Cg)
 13                   -            -                       -                      2.04         20.65                   0.42                   6.24         19.45                   1.21
 15                   -            -                       -                      2.02         20.70                   0.42                   6.23         19.45                   1.21
 17.5                 -            -                       -                      1.91         20.95                   0.40                   6.03         19.55                   1.18

 

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.

 

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.
 Exploration Results    Exploration Results include data and information generated by mineral
                        exploration programmes that might be of use to investors but which do not form
                        part of a declaration of Mineral Resources or Ore Reserves.
 Exploration Target     An Exploration Target is a statement or estimate of the exploration potential
                        of a mineral deposit in a defined geological setting where the statement or
                        estimate, quoted as a range of tonnes and a range of grade (or quality),
                        relates to mineralisation for which there has been insufficient exploration to
                        estimate a Mineral Resource.
 graphitic              of, relating to, resembling, or having the structure of graphite.
 graphitic carbon       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 (i.e. total carbon - (organic + carbonate
                        carbon)).
 Indicated Resource     Indicated Resources are economic mineral occurrences that have been sampled
                        (from locations such as outcrops, trenches, pits and drill holes) to a point
                        where an estimate has been made, at a reasonable level of confidence, of their
                        contained metal, grade, tonnage, shape, densities, physical characteristics.
 Inferred Resource      An Inferred Resource means that part of a mineral resource for which quantity
                        and grade or quality are estimated on the basis of limited geological evidence
                        and sampling. Geological evidence is sufficient to imply but not verify
                        geological and grade or quality continuity.
 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 Resource        The first Mineral Resource estimate to be completed on a project.
 Mineral Resource       A Mineral Resource is a concentration or occurrence of solid material of
                        economic interest in or on the Earth's crust in such form, grade (or quality),
                        and quantity that there are reasonable prospects for eventual economic
                        extraction. The location, quantity, grade (or quality), continuity and other
                        geological characteristics of a Mineral Resource are known, estimated or
                        interpreted from specific geological evidence and knowledge, including
                        sampling. Mineral Resources are sub-divided, in order of increasing geological
                        confidence, into Inferred, Indicated and Measured categories.
 metallurgical testing  Metallurgical testing typically uses microscopy to provide important
                        information about the structure and properties of metal and alloy samples.
 Ore Reserves           The economically mineable part of a Measured or Indicated Mineral Resource. It
                        includes diluting materials and allowances for losses which may occur when the
                        material is mined. Appropriate assessments, which may include feasibility
                        studies, have been carried out, and include consideration of and modification
                        by realistically assumed, mining, metallurgical, economic, marketing, legal,
                        environmental, social and governmental factors. These assessments demonstrate
                        at the time of reporting that extraction can reasonably be justified. Ore
                        Reserves are sub-divided in order of increasing confidence into Probable Ore
                        Reserves and Proved Ore Reserves.
 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.

 

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.

 

Without prejudice to the generality of the foregoing, uncertainties also exist
in connection with the ongoing Coronavirus (COVID-19) pandemic which may
result in further lockdown measures and restrictions being imposed by
Governments and other competent regulatory bodies and agencies from time to
time in response to the pandemic, which measures and restrictions may prevent
or inhibit the Company from executing its work activities according to the
timelines set out in this announcement or indeed from executing its work
activities at all. The Coronavirus (COVID-19) pandemic may also affect the
Company's ability to execute its work activities due to personnel and
contractors testing positive for COVID-19 or otherwise being required to
self-isolate from time to time.

 

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.

 

**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

 

ETX Capital (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      90%
 Dolgellau Gold Exploration (gold)  Wales      90-100%
 Gwynfynydd (gold)                  Wales      100%
 Limerick (zinc-lead)               Ireland    100%
 Investments Held by Alba           Location   Ownership
 GreenRoc Mining Plc (mining)       Greenland  54%
 Horse Hill (oil)                   England    11.765%

 

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.

Without prejudice to the generality of the foregoing, uncertainties also exist
in connection with the ongoing Coronavirus (COVID-19) pandemic which may
result in further lockdown measures and restrictions being imposed by
Governments and other competent regulatory bodies and agencies from time to
time in response to the pandemic, which measures and restrictions may prevent
or inhibit the Company from executing its work activities according to the
timelines set out in this announcement or indeed from executing its work
activities at all. The Coronavirus (COVID-19) pandemic may also affect the
Company's ability to execute its work activities due to personnel and
contractors testing positive for COVID-19 or otherwise being required to
self-isolate from time to time.

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

 

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