TIDMALBA
RNS Number : 3844V
Alba Mineral Resources PLC
30 January 2017
Alba Mineral Resources plc
("Alba" or the "Company")
Airborne EM-Mag Survey Identifies Several New Faults
and 12 km of Potential Strike Length
Amitsoq Graphite Project, Southern Greenland
Further to the announcement of 3 October 2016, Alba Mineral
Resources plc (AIM: ALBA) has now completed the preliminary
evaluation of the high resolution airborne electromagnetic-magnetic
("EM-Mag") geophysical survey on the Amitsoq graphite project (the
"Project") near Nanortalik in southern Greenland. The initial
interpreted results are highly encouraging and provide numerous
target areas for follow-up ground work, geophysics and drilling.
These targets include graphite zones and extensions of the former
graphite mine at Amitsoq, nickel and platinum group metals ("PGMs")
to the north of the former mine, as well as potential gold targets
on the mainland to the south of Amitsoq island.
HIGHLIGHTS
-- Airborne EM data has identified several new faults and
numerous anomalies, some of which correspond to known and
interpreted graphitic horizons along strike and proximal to the
Amitsoq graphite mine.
-- Numerous EM anomalies associated with potential graphite
horizons have been identified with a total strike length of 12.05
kilometres.
-- 11 anomalies in particular of between 350 metres and 1300
metres each in length, for a total strike length of 5.55 km, will
be priority targets for Alba in the 2017 ground campaign,
especially in and around the historic mine area.
-- Two shallow, moderate intensity EM anomalies have been
identified, associated with a large ultramafic dyke known to
contain magmatic sulphides of nickel, PGMs, gold and silver.
-- Additional data processing being undertaken to determine
thickness, lateral extent, depth and dip of the conductive
bodies.
Airborne EM-Mag Geophysical Survey
SkyTEM Systems ApS was commissioned to perform an airborne
geophysical survey which was flown in September 2016 over selected
zones within the Project area. The survey comprised of four blocks
containing a total of 343 km of planned flight lines. The main part
of the survey on Amitsoq Island was flown at a planned line spacing
of 200 m and a ground clearance of 30 m. High-definition targets,
such as the former Amitsoq graphite mine, Craig's Dyke, and two
small gold targets east of Nanortalik were flown at a reduced line
spacing of 100 m. The SkyTEM system was selected as it affords
greater depth penetration (up to 400m) when compared to rival
systems.
The airborne instrumentation comprised of a SkyTEM 304M system
which included a time domain electromagnetic system, a magnetic
data acquisition system, and an auxiliary data acquisition system
containing two inclinometers, two altimeters and three Differential
Global Positioning Systems (DGPS). All data was captured digitally,
and processing of the data was carried out by SkyTEM geophysicists
to produce a number of preliminary magnetic and electromagnetic
interpretation products.
Geological interpretation of the magnetic data was performed by
EurGeol Dr. Sandy Archibald, PGeo (Aurum Exploration Services),
which helped to identify distinct geological units and faults, and
reconciled the information with previous mapping carried out by the
Geological Survey of Denmark and Greenland (GEUS).
Additional processing and interpretation of the magnetic and EM
data was performed by Senior Geophysical Consultant Jeremy S.
Brett, M.Sc., P.Geo. (MPH Consulting Limited, Toronto) in
collaboration with SkyTEM staff. Mr. Brett scrutinised the original
data and performed a variety of data reduction studies. From the
reprocessed data, the following important features were
identified:
- Several new faults and numerous EM anomalies associated with
potential graphite horizons were identified with a total strike
length of 12.05 kilometres.
- Of that total, there are 11 anomalies in particular of between
350 metres and 1300 metres each in length, for a total strike
length of 5.55 km. These will be priority targets for Alba in the
2017 ground campaign.
- Two shallow, moderate intensity EM anomalies associated with a
large ultramafic dyke (Craig's Dyke) known to contain magmatic
sulphides (pyrrhotite, pentlandite, chalcopyrite, and cubanite) of
up to 0.4 g/t platinum, 0.6 g/t palladium, 0.2 g/t gold and 7 g/t
silver (GEUS, 1971).
Generally, the EM anomalies are in good agreement with the
remote sensing iron oxide (FeO) study reported by Alba on 4
February 2016.
Alba has grouped the EM anomalies into four distinct graphite
target areas, and within those four graphite areas Alba intends to
focus its efforts in the forthcoming ground campaign on what we are
calling Target Area 1, seeking to establish graphite extensions in
and around the known mine area. Alba also intends to explore the
non-graphite target referred to above at Craig's Dyke (Target Area
5).
The version of this announcement on Alba's website
(www.albamineralresources.com) will include a map showing the
location of the five Target Areas referred to above.
Processing of the airborne data over two potential gold targets
5 and 7 km east of Nanortalik is ongoing.
Further Analysis of EM-Mag Data Underway
To build upon this initial evaluation of the EM-Mag data,
further analysis work is underway with a view to determining the
thickness, lateral extent, depth and dip of the inferred graphite
horizons. This further work, which will be reported in due course,
will complete Alba's thorough evaluation of the EM-Mag data
acquired as a result of the flying of the airborne survey. The
results will be used to plan a drilling campaign for later this
year.
Geological mapping, sampling, and additional ground based
geophysics are recommended for the Ni-PGM target at Craig's
Dyke.
Follow-up work in respect of the two potential gold targets 5
and 7 km east of Nanortalik will be determined once the processing
and evaluation of the EM-Mag data from those areas has been
completed.
Additional maps showing the interpretation of the airborne
geophysical survey area can be viewed on the Alba website at
www.albamineralresources.com.
Previous Work Undertaken at Amitsoq
Prior to commissioning the airborne EM-Mag survey, Alba's work
at Amitsoq had confirmed the following:
-- Test work carried out on hand/grab samples collected during a
field expedition returned excellent results, showing graphitic
carbon contents varying from 20.5% to 35.4%, with an overall mean
graphitic carbon content of 28.7%, significantly higher than the
previously reported historic average grade of 20% and higher than
most reported advanced graphite projects globally.
-- Measurements of the discrete graphite flakes demonstrated
that the mean flake-size varies from 300-500 um, 'Jumbo' to 180-300
um 'Large', however the single most common flake size is in fact
'Super-Jumbo' (>500 um). The larger flake sizes attract a
premium in the market.
-- The results of a remote sensing study were highly
encouraging, highlighting several anomalies for a variety of
commodities. Numerous and continuous graphitic horizons were
suggested along strike and proximal to the Amitsoq graphite
mine.
-- Additional FeO anomalies are interpreted to be favourable
targets for platinum group metals, orogenic lode gold and intrusion
related copper-zinc mineralization.
-- Anomalies have been identified with geology similar to
economic gold mineralization at the nearby Nalunaq gold mine (circa
340,000 ounces of gold produced to date). These FeO anomalies are 5
km along strike from previous documented gold showings, and 18 km
to the southwest of the Nulunaq mine.
-- A bulk sampling exercise (August 2016) took 179 kilograms of
graphite ore sampled from a surface bed that had previously been
exploited when the Amitsoq mine was operational. The bed was found
to have a true thickness of 16.58 metres. Metallurgical test work
on this material is currently underway and will be reported on in
due course.
Alba's interest in Amitsoq
As announced on 1 November 2016, Alba has earned the right to a
49 per cent interest in the Amitsoq Project and has further agreed,
subject to regulatory approvals from the Greenlandic authorities,
to acquire a further 41 per cent interest which will take it to 90
per cent ownership of the Project.
George Frangeskides, Alba's Executive Chairman, commented
"The initial results from the airborne geophysical survey are
very promising. We expected to find anomalies in the vicinity of
the historic Amitsoq graphite mine, and this has been confirmed by
the survey. What is most exciting is the discovery of numerous
linear anomalies running in a general north-easterly direction away
from the mine area. These are suggestive of the presence of a
highly conductive unit that can continue laterally for up to 1300
metres at a time. The identification in particular of 11 conductor
axes amounting in aggregate to 5.5 kilometres of strike provides us
with significant priority targets for follow up work."
"The survey results to date vindicate the Alba Board's decision
to invest in the Amitsoq Project, the fundamentals of which were
already strong, comprising as it does a former producing mine, with
high grade graphite (average content 28.7% graphitic carbon) and a
preponderance of high value, Jumbo to Super Jumbo flakes."
"The next phase of exploration will involve further processing
of the geophysical data which is already underway, followed by
ground verification of targets and the planning of a drilling
programme for later this year."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information please contact:
Alba Mineral Resources
plc
Michael Nott, CEO +44 20 3696 4616
Cairn Financial Advisers
LLP
James Caithie / Liam Murray +44 20 7213 0880
Dowgate Capital Stockbrokers
Limited
Jason Robertson / Neil
Badger +44 1293 517744
Competent Person's Declaration
The information in this announcement that relates to the
geology, exploration results and work programme is based on
information compiled by and reviewed by EurGeol Dr Sandy M.
Archibald, PGeo, Aurum Exploration Services, who is a Professional
Geologist and Member of the Institute of Geologists of Ireland, and
a Fellow of the Society of Economic Geologists. He is a geologist
with fifteen years of experience in the exploration industry, and
ten years post-graduate studies.
Sandy M. Archibald is a Technical Advisor to Alba Mineral
Resources plc and has sufficient experience which is relevant to
the style of mineralization and type of deposit under
consideration, and to the type of activity which he is undertaking
to qualify as a Competent Person as defined in the June 2009
Edition of the AIM Note for Mining and Oil & Gas Companies.
Sandy M. Archibald consents to the inclusion in the announcement of
the matters based on the information in the form and context in
which it appears and confirms that this information is accurate and
not false or misleading.
About Alba
Alba holds a 15 per cent interest in Horse Hill Developments
Limited, the company which has a 65 per cent participating interest
and operatorship of the Horse Hill oil and gas project (licences
PEDL 137 and PEDL 246) in the UK Weald Basin. Alba is also earning
a 5% interest in Production Licence 235, which comprises the
producing onshore Brockham Oil Field.
Alba has earned the right to a 49 per cent interest in the
Amitsoq Graphite Project in Southern Greenland and has agreed to
acquire a further 41 per cent interest in the Project, subject to
Greenlandic regulatory approvals.
In addition, the Company has recently renewed its Limerick base
metal licence in the Republic of Ireland. The Company has applied
for the reissue of a uranium permit in northern Mauritania. The new
Mauritanian permit will be on a reduced area, and is centred on
known uranium-bearing showings.
Alba continues actively to review and discuss numerous other
project opportunities which have value-enhancing potential for the
Company whether by acquisition, farm in or joint venture in a range
of jurisdictions around the world.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FURBRMRTMBTTBAR
(END) Dow Jones Newswires
January 30, 2017 02:00 ET (07:00 GMT)