Alba Mineral Resources PLC Half-year Report (2392K)

TIDMALBA

RNS Number : 2392K

Alba Mineral Resources PLC

31 August 2021

Alba Mineral Resources plc

("Alba" or the "Company")

HALF-YEARLY REPORT

The Board of Directors of Alba Mineral Resources plc (the "Company" or "Alba") is pleased to report the Company's interim results for the six months ended 31 May 2021. They incorporate the results of its subsidiary companies Aurum Mineral Resources Limited ("AMR"), Mauritania Ventures Limited ("MVL"), Obsidian Mining Limited ("OML"), White Eagle Resources Limited ("WERL"), White Fox Resources Limited ("WFRL"), Dragonfire Mining Limited ("DML"), the Gold Mines of Wales group of companies ("GMOW"), GMOW (Gwynfynydd) Limited and GreenRoc Mining Plc (formerly Pole Star Resources Plc) (together, the "Subsidiary Companies", collectively with Alba, the "Group").

CHAIRMAN'S STATEMENT

The six months to 31 May 2021 have seen the Company:

- complete successful drilling programmes at the Clogau-St David's Gold Mine, which have enabled us to define a potential 550 m extension to the Main Lode as well as a vein system extending 122 m below the deepest previously worked zone at the Llechfraith mine area;

- carry out a sampling exercise over the rock waste dump at Clogau St-David's, with several pits dug and around 15 tonnes of material extracted per pit;

- purchase and install a dedicated pilot gold processing plant at Clogau-St David's, with the first set of assay results on bulk sample concentrates produced from the plant returning notable concentrate grades of 20.4 to 165.5 g/t;

   -    renew our exclusive mineral rights over the Dolgellau Gold Belt for a further four years; 

- renew our base metals exploration licence in Ireland until May 2022 and define three main target areas for follow-up drilling there;

- carry out purification test work in Germany which has confirmed the suitability of Amitsoq graphite for the production of high purity (99.95%) spherical graphite for lithium-ion batteries;

- appoint an independent competent person to review the resource potential at Amitsoq, resulting in the declaration of a large tonnage, high-grade exploration target for both the Amitsoq and Kalaaq graphite deposits;

- design and plan two extensive summer drilling programmes for the Amitsoq and Thule Black Sands projects in Greenland;

- announce the divestment of Alba's Greenland assets into a separate vehicle which, subject to regulatory approval, will be admitted to trading on AIM; and

   -    appoint two new, high-profile Non-Executive Directors to the Board. 

1. REVIEW OF ACTIVITIES

1.1 WELSH GOLD

(Clogau-St David's, Gwynfynydd, Dolgellau Exploration Project)

(a) Underground Drilling

A Phase 1 underground drilling programme was successfully completed in October 2020, with seven drill holes completed for a total of 559 metres. All seven drillholes intersected quartz veining, the known geological setting of all historic gold production at the Clogau-St David's Gold Mine. Alba believes the drilling to have intersected a 550-metre westerly extension to the Main Lode, the source of most historic production at the Clogau-St David's Gold Mine. A Phase 2 underground drilling programme commenced in May 2021 .

(b) Surface Drilling

A Phase 1 surface drilling programme was successfully completed, targeting a zone below the Llechfraith mine area. A total of ten holes were drilled from the same location, as a result of which we were able to project the newly identified vein system as having a strike extent of up to 52 metres, as well as extending 122 metres below the deepest previously worked zone at the Llechfraith mine area. Assay results confirmed gold mineralisation across several individual zones up to one metre thick, with individual values up to 4.25 g/t, reinforcing our view that the newly modelled zone, the Llechfraith Lode, is a key target for future development and production at Clogau-St David's.

The second phase of the Company's surface drilling programme commenced in April 2021, targeting the westerly, 550-metre extension to the Clogau Main Lode, which was identified during the underground drilling last year (see above).

(c) Pitting of Waste Rock Dump

In April 2021 we carried out evaluation pitting of the historic waste rock dump at Clogau-St David's. The waste rock dump contains material derived from the internal development of the Mine during past periods of production. The dump is estimated to cover about 30,000 square feet and to contain 20,000 tonnes of rock. Several pits were dug, with around 15 tonnes of material extracted per pit. The material was then screened and a sample of the finer material from each pit sent for gold assaying offsite.

(d) Bulk Sampling

The Company purchased and installed new items of plant at the mine site, notably an impact crusher and gold concentrator. The Company's dedicated pilot gold processing plant became fully operational in January 2021. The first set of assay results on bulk sample concentrates produced at the Company's pilot processing plant at Clogau-St David's returned notable concentrate grades of 20.4 to 165.5 g/t from Jack Williams Lode and floor material from Tyn-Y-Cornel area.

(e) Llechfraith Dewatering

During the period we submitted an application for a bespoke water discharge permit to allow the lower workings in the Llechfraith Shaft to be dewatered so that we can then undertake underground drilling and bulk sampling directly from that key zone.

(f) Permitting

Our six-year exclusive exploration licence over the Dolgellau Gold Belt, including the Clogau-St David's Mine, was extended for a further four years, until February 2025.

1.2 GREENLAND PORTFOLIO

(Amitsoq Graphite, Thule Black Sands Ilmenite, Melville Bay Iron and Inglefield Multi-Element)

(a) Amitsoq Graphite

Graphite specialists ProGraphite of Germany undertook a test work programme which demonstrated that a >96% graphite concentrate can be produced from Amitsoq graphite and that purification test work confirms the suitability of Amitsoq graphite for Lithium-Ion Batteries ("LIBs"), with standard alkaline purification, in particular, achieving a carbon level of above 99.95%, the grade needed for the production of spherical graphite for LIBs.

Alba also commissioned Dr John Arthur CGeol, FGS to prepare an Exploration Target for the Amitsoq Project. Dr Arthur determined that the volume and grade ranges for:

(i) the Amitsoq Deposit Exploration Target are between 1.7 and 4.5 million tonnes (assuming a density of 2.63t/m3) with a grade range of between 24-36% Graphitic Carbon; and

(ii) the Kalaaq Deposit Exploration Target are between 4.0 and 7.0 million tonnes (assuming a density of 2.63t/m3) with a grade range of between 23-29% Graphitic Carbon.

This translates into a tonnage estimate of between 408,000 and 1,620,000 tonnes for the Amitsoq deposit and between 920,000 and 2,030,000 tonnes for Kalaaq.

In accordance with the JORC Code (2012), the potential quantity and grade of this Exploration Target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

(b) Drill Planning

Alba spent much of the period under review designing and planning for two significant drill programmes to be undertaken at Amitsoq and Thule Black Sands ("TBS") over the summer of 2021. At Amitsoq, drilling was aimed at defining a maiden JORC Resource for the project. At TBS, meanwhile, drilling was aimed at significantly increasing our JORC Resources as well as moving some of our existing Inferred Resources into the Indicated category.

1.3 IRISH BASE METALS

The mineral exploration licence for Alba's 100% owned Limerick Base Metals Project, PL 3824, was renewed until 26 May 2022.

A prospectivity review of the licence area identified the Coonagh Castle Fault as one of main faults transecting the Limerick Basin and concluded that being able to determine the trace of the fault to within tens of metres on surface is crucial to the success of future drilling.

Subsequent interpretation of Tellus and satellite (Sentinel) imagery for the Alba licence area has identified three principal exploration target areas within PL 3824, each exhibiting a number of the structural and geological features found in Zinc-Lead deposits in the Irish Zinc Ore Field.

2. CORPORATE

In May 2021 we announced that the Alba Board had determined that the best way to unlock real value in our Greenland assets was to divest them all into a separate vehicle which, subject to regulatory approval, will be admitted to trading on AIM. That new listed vehicle, GreenRoc Mining Plc, would acquire Alba's Greenland Projects for shares and simultaneously undertake an IPO fundraising to secure the necessary working capital to fast-track their development. A further announcement on this will be made shortly.

In December 2020, we strengthened our Board through the appointment of Elizabeth Henson and Lars Brünner as Non-Executive Directors. Elizabeth was, from 2007-2019, a senior international tax partner for PricewaterhouseCoopers LLP (PwC), based in London. As for Lars, from 2014-2020 he was the Arctic Mining and Environment, Business Development Leader for Golder Associates A/S, a leading international mining and environmental consultancy firm.

3. RESULTS

The Group made a loss attributable to equity holders of the parent for the period, after taxation, of GBP567,828 (2020: GBP303,788). Much of the increase in loss from the comparative period was due to costs incurred in undertaking the spin-out of the Group's Greenland asset portfolio.

At the end of the reporting period, the Group's cash was GBP1,619,649 with expenditure on exploration projects and on administrative expenses during the period compensated by funds received from the GBP1.2 million share placing at the end of the last financial year. This was shown in the year-end balance sheet as a significant debtor and subsequently paid during the reporting period.

Intangible assets increased by just under GBP1 million from the comparative interim period last year. This number excludes spend in advance of the planned field programmes in Greenland, which is held as a prepayment within debtors.

The basic and diluted loss per share was 0.009p (2020: 0.008p).

4. OUTLOOK

Alba remains in a strong position to generate real and sustained growth across the Company's portfolio of assets and investments.

On behalf of the entire Board, I would like to take this opportunity to thank our shareholders for all their support.

George Frangeskides

31 August 2021

Executive Chairman

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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 Company'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.

For further information, please contact:

 
 Alba Mineral Resources plc 
  George Frangeskides, Executive Chairman    [phone] 
 Cairn Financial Advisers LLP (Nomad) 
  James Caithie/Liam Murray                  [phone] 
 ETX Capital (Broker) 
  Thomas Smith                               [phone] 
 

Alba's Project and Investment Portfolio

 
 Project (commodity)            Location     Ownership 
 Mining Projects 
 Amitsoq (graphite)             Greenland    100% 
                               -----------  ---------- 
 Clogau (gold)                  Wales        90% 
                               -----------  ---------- 
 Gwynfynydd (gold)              Wales        100% 
                               -----------  ---------- 
 Inglefield (copper, cobalt, 
  gold)                         Greenland    100% 
                               -----------  ---------- 
 Limerick (zinc-lead)           Ireland      100% 
                               -----------  ---------- 
 Melville Bay (iron ore)        Greenland    100% 
                               -----------  ---------- 
 TBS (ilmenite)                 Greenland    100% 
                               -----------  ---------- 
 Oil & Gas Investments 
 Horse Hill (oil)               England      11.765% 
                               -----------  ---------- 
 

UNAUDITED CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHSED 31 MAY 2020

 
                                          Unaudited       Unaudited    Audited Year 
                                           6 months        6 months        ended 30 
                                           ended 31        ended 31        Nov 2020 
                                           May 2020        May 2020 
 
 Revenue                                          -               -               - 
 Cost of sales                                    -               -               - 
                                     --------------  --------------  -------------- 
 Gross loss                                                                       - 
 Administrative expenses                  (371,566)       (338,463)       (543,942) 
 Other income                                     -          34,542               - 
 Transaction-related professional         (196,262)               -               - 
  fees 
 
 Operating (loss)/profit                  (567,828)       (303,921)       (543,942) 
 
 Revaluation of investment                        -               -     (1,430,000) 
 Finance costs                                    -               -       (105,595) 
                                     --------------  --------------  -------------- 
 (Loss)/profit before tax                 (567,828)       (303,921)     (2,079,537) 
 
 Taxation                                         -               -               - 
                                     --------------  --------------  -------------- 
 (Loss)/profit for the year               (567,828)       (303,921)     (2,079,537) 
                                     --------------  --------------  -------------- 
 
 Attributable to: 
 Equity holders of the parent             (567,298)       (303,788)     (2,078,897) 
 Non-controlling interests                    (530)           (133)           (640) 
                                     --------------  --------------  -------------- 
                                          (567,828)       (303,921)     (2,079,537) 
                                     --------------  --------------  -------------- 
 
 Loss per ordinary share 
 Basic and diluted                    (0.009) pence   (0.008) pence   (0.047) pence 
 
 

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 MAY 2021

 
                                             Unaudited     Unaudited   Audited Year 
                                              6 months      6 months       ended 30 
                                              ended 31      ended 31       Nov 2020 
                                              May 2021      May 2020 
 
 Non-current assets 
 Property, plant and equipment                 140,026        85,000        111,038 
 Intangible fixed assets                     4,105,810     3,107,797      3,526,317 
 Investments - Horse Hill Developments       4,000,000     5,430,000      4,000,000 
 Investments -other                                  -        11,125              - 
 Total non-current assets                    8,245,836     8,633,922      7,637,355 
                                          ------------  ------------  ------------- 
 
 Current assets 
 Trade and other receivables                   269,624        65,397      1,196,006 
 Cash and cash equivalents                   1,619,649       105,470      1,512,031 
                                          ------------  ------------  ------------- 
 Total current assets                        1,889,273       170,867      2,708,037 
                                          ------------  ------------  ------------- 
 
 Current liabilities 
 Trade and other payables                    (475,423)     (406,900)      (257,047) 
 Financial liabilities                        (41,134)     (157,134)       (41,134) 
                                          ------------  ------------  ------------- 
 Total current liabilities                   (516,557)     (564,034)      (298,181) 
                                          ------------  ------------  ------------- 
 
 Net current assets / (liabilities)          1,372,716     (393,167)      2,409,856 
                                          ------------  ------------  ------------- 
 
 Net assets                                  9,618,552     8,240,755     10,047,211 
                                          ------------  ------------  ------------- 
 
 Capital and reserves 
 Called up share capital                     4,986,931     4,770,233      4,983,956 
 Share premium account                       9,444,472     7,093,305      9,360,248 
 Warrant reserve                             1,384,993       739,303      1,286,785 
 Reserve for warrants to be 
  issued                                             -             -        416,044 
 Retained losses                           (6,350,628)   (4,577,582)    (6,153,136) 
 Foreign currency reserve                      168,612       230,287        168,612 
                                          ------------  ------------  ------------- 
 Equity attributable to equity 
  holders of the parent                      9,634,380     8,255,546     10,062,509 
 Non-controlling interests                    (15,828)      (14,791)       (15,298) 
                                          ------------  ------------  ------------- 
 
   Total equity                              9,618,552     8,240,755     10,047,211 
                                          ------------  ------------  ------------- 
 

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHSED 31 MAY 2021

 
                                           Unaudited   Unaudited   Audited Year 
                                            6 months    6 months       ended 30 
                                            ended 31    ended 31       Nov 2020 
                                            May 2021    May 2020 
 
 Cash flows from operating activities 
 Operating loss                            (567,828)   (303,921)      (543,942) 
 Consulting fees settled in shares                 -      42,174         42,174 
 Share based payment charge                   51,968      54,482         16,303 
 Change in fair value of other 
  investments                                      -           -         11,125 
 Foreign exchange revaluation 
  adjustment                                       -         267       (61,406) 
 Increase / (decrease) in creditors          270,512    (45,509)       (89,394) 
 (Increase)/ decrease in debtors           (225,548)      32,190         13,453 
                                          ----------  ----------  ------------- 
 Net cash used in operating activities     (470,896)   (258,496)      (564,108) 
                                          ----------  ----------  ------------- 
 
 Cash flows from investing activities 
 Payments for deferred exploration 
  expenditure                              (631,627)    (57,367)      (482,777) 
 Payments for tangible fixed 

  assets                                     (5,059)           -       (26,038) 
                                          ----------  ----------  ------------- 
 Net cash used in investing activities     (636,686)    (57,367)      (508,815) 
                                          ----------  ----------  ------------- 
 
 Cash flows from financing activities 
 Proceeds from issue of shares 
  and warrants                             1,287,200     155,000      2,422,899 
 Cost of issue                              (72,000)    (46,126)      (105,000) 
 Proceeds from short term borrowings               -     101,126              - 
 Proceeds from convertible loan 
  notes                                            -           -        192,000 
 Financing costs                                   -           -       (37,200) 
 Repayment of short term borrowings 
  plus financing costs                             -           -       (99,078) 
                                          ----------  ----------  ------------- 
 Net cash generated from financing 
  activities                               1,215,200     210,000      2,373,621 
                                          ----------  ----------  ------------- 
 
 Net increase in cash and cash 
  equivalents                                107,618   (105,863)      1,300,698 
 Cash and cash equivalents at 
  beginning of period                      1,512,031     211,333        211,333 
                                          ----------  ----------  ------------- 
 Cash and cash equivalents at 
  end of period                            1,619,649     105,470      1,512,031 
                                          ----------  ----------  ------------- 
 
 

NOTES TO THE HALF-YEARLY FINANCIAL INFORMATION

   1.            Basis of preparation 

The Group consolidates the financial statements of the Company and its subsidiary undertakings.

The financial information has been prepared under the historical cost convention in accordance with International Financial Reporting Standards ("IFRS"), International Accountant Standards ("IAS") and IFRS Interpretations Committee ("IFRIC") interpretations as adopted by the European Union. The financial information set out in this half-yearly report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The same accounting policies, presentation and methods of computation are followed in this interim condensed consolidated report as were applied in the Group's annual financial statements for the year ended 30 November 2020. The auditor's report on those financial statements was unqualified and did not contain any statements under section 498(2) or section 498(3) of the Companies Act 2006.

   2.            Taxation 

No charge for corporation tax for the period has been made due to the expected tax losses available.

   3.            Loss per share 

Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders of GBP567,828 (May 2020: loss of GBP303,788; November 2020: loss of GBP2,078,897) by the weighted average number of shares of 6,209,415,290 (May 2020: 3,922,836,878; November 2020: 4,421,614,727) in issue during the period. The diluted loss per share calculation is identical to that used for basic loss per share as the exercise of warrants would have the effect of reducing the loss per ordinary share and therefore is not dilutive under the terms of Financial Reporting Standard 22 "Earnings Per Share".

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August 31, 2021 07:26 ET (11:26 GMT)