TIDMALBA
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) i s 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 Tonnes (Mt) Graphitic Carbon Graphite content
Category (%) (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 Measured Indicated Inferred
Grade
(Cg%)
------------------------------ ------------------------------ ------------------------------
Tonnes Graphitic Graphite Tonnes Graphitic Graphite Tonnes Graphitic Graphite
(Mt) Carbon Content (Mt) Carbon Content (Mt) Carbon Content
(Cg%) (Mt) (Cg%) (Mt) (Cg%) (Mt)
------- ---------- --------- ------- ---------- --------- ------- ---------- ---------
Base
Case
(0%
Cg) - - - 2.04 20.65 0.42 6.24 19.45 1.21
------- ---------- --------- ------- ---------- --------- ------- ---------- ---------
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 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 Location Ownership
by Alba
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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