Alba Mineral Resources PLC Bulk Sampling Completed at Amitsoq (2528J)

TIDMALBA

RNS Number : 2528J

Alba Mineral Resources PLC

08 September 2016

8 September 2016

Alba Mineral Resources plc

("Alba" or the "Company")

Alba completes bulk sampling at former graphite mine

within Amitsoq project in southern Greenland

Alba Mineral Resources plc (AIM: ALBA) is pleased to announce that it has successfully completed a bulk sampling exercise at the Amitsoq graphite project in southern Greenland.

Highlights

-- 179 kgs of graphite ore sampled from a vein that had previously been exploited when the Amitsoq mine was operational

   --     Vein found to have a true thickness of 16.58 metres 
   --     Samples will now be sent to a laboratory for metallurgical test work and analysis 

-- Bulk-sampling exercise part of Alba's drive to implement a fast-track route to prove up the economic viability of the Amitsoq project

Introduction

The Company commissioned SRK Exploration Services Ltd to sample one of the graphite-bearing veins at the site of the former Amitsoq graphite mine. The vein was sampled where it has been exposed in outcrop and in what appears to be an old surface box cut that was created during previous mining operations. The 179 kilograms of samples will now be sent to a laboratory for metallurgical test work to be carried out on the graphite ore. We will report on the results of the test work in due course.

The objective of the test work is to help establish the most economic route for the beneficiation of Amitsoq graphite ore.

Bulk sampling exercise

The particular vein selected for sampling appears to have been exploited with a number of adits when the Amitsoq mine was operational. At the location selected for sampling, the vein has a true thickness of 16.58 metres, which is greater than had been anticipated. A total of 13 channel samples were taken. Photographs of the sampling exercise can be seen on the Alba website (see the "Image Gallery" section). The channel samples were offset from each other where necessary in order to cover the outcrop morphology. They are however geologically contiguous across dip, thus providing continuity of sampling through the whole thickness of the vein, and cover a strike distance of 48.5 metres.

The total mass of the samples is 179 kilograms. The vein material showed only minor mineralogical variation in terms of quartz content. Further work is required to establish continuity of the measured thickness along strike. However, the adits that were visited appeared to be on the same structure as that sampled.

Mineralogically, the vein is composed of graphite with pyrite, chalcopyrite and pyrrhotite together with quartz blebs or stringers. The depth of surficial hematite/limonite staining, derived from weathered sulphides, is minimal and was immediately covered by the silver appearance of the graphite carried in the blade's cooling water, this being an indicator of the presence of graphite in the ore rock (see the relevant photo in the "Image Gallery" section of the Alba website).

The amount of shearing varied across the vein and in places small quartz-filled tension gashes were seen to be perpendicular to the vein. The only textural variation found was in terms of the degree of shearing. One major internal shear was observed but appeared to be conformable with the hanging and footwall contacts.

Looking forward, we intend to embark on further field work including mapping and channel sampling all veins that crop out on the peninsula, airborne and ground geophysical surveys (magnetics and electromagnetics), underground mapping and sampling in the existing adits and surface drilling to evaluate the strike and dip extent of the graphite bearing veins in the Amitsoq licence.

Work undertaken to date at Amitsoq

Alba's work to date at Amitsoq has 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 suggests 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 mineralisation at the nearby Nalunaq gold mine (circa 340,000 ounces of gold produced to date). Nalunaq is only some 14 miles to the north-east of one of our own gold target areas and other known gold areas occur some three miles to the north-east in an adjacent licence.

Mike Nott, Alba's CEO, commented:

"All the results of our work so far at the Amitsoq Project have been very encouraging and justify our entry into the Project. Further information will be released in due course about our proposed forthcoming airborne survey, which is an integral part of our drive to implement a fast-track route to prove up the economic viability of the Amitsoq Project."

For further information please contact:

 
 Alba Mineral Resources 
  plc 
  Michael Nott, CEO                [phone] 
 Cairn Financial Advisers 
  LLP 
  James Caithie/Liam Murray        [phone] 
 Dowgate Capital Stockbrokers 
  Limited 
  Jason Robertson / Neil 
  Badger                           [phone] 
 

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 has also elected to earn a 5% interest in Production Licence 235, which comprises the producing onshore Brockham Oil Field.

Alba has the right to earn up to 70 per cent of the Amitsoq Graphite Project in Southern Greenland. In addition, the Company has recently renewed its Limerick base metal and gold licence in the Republic of Ireland, and 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 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

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September 08, 2016 02:00 ET (06:00 GMT)