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Alba Mineral Resources Plc LSE:ALBA London Ordinary Share GB00B06KBB18 ORD 0.01P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
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Alba Mineral Resources PLC Investee Company Update: GreenRoc Mining plc

13/06/2022 7:00am

UK Regulatory (RNS & others)


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TIDMALBA

RNS Number : 5600O

Alba Mineral Resources PLC

13 June 2022

13 June 2022

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). Alba holds a 54% majority interest in GreenRoc. The announcement is set out below without material changes.

GreenRoc Mining plc

("GreenRoc" or the "Company")

To view the RNS with illustrative diagrams and maps, please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/5600O_1-2022-6-12.pdf

Amitsoq Graphite Project Update

Significant Tonnage Upgrade to Kalaaq Exploration Target

GreenRoc Mining plc (AIM: GROC), a company focused on the development of critical mineral projects in Greenland, is pleased to announce a significant increase to its Exploration Target at the Kalaaq prospect, part of the Amitsoq Graphite Project in southern Greenland ("Amitsoq" or the "Project"), one of the highest-grade graphite deposits in the world.

Highlights

-- Following additional channel and field sampling along with field mapping as part of the 2021 field season, the Exploration Target for Kalaaq has now been updated.

-- The Exploration Target [1] has increased from a tonnage range of 4Mt-7Mt at a grade range of 23-29% Graphitic Carbon ('Cg') (as announced by Alba Mineral Resources plc on 7 May 2021) to a tonnage range of 6 Mt-10 Mt at a grade range of 17-33% Cg.

-- Results confirm significant resource potential of this as yet undrilled deposit, which is open along strike (predominantly to the south) and down dip.

-- Kalaaq is one of two key deposits identified at Amitsoq, the other being the Amitsoq Island Deposit, which has a combined Indicated and Inferred JORC Resource of 8.28 Mt at an average grade of 19.75% Cg, giving a total graphite content of 1.63 Mt, and an Exploration Target of 5-15 Mt at a grade range of 18-22% Cg.

-- Drilling is due to resume at Amitsoq Island later this month, targeting resource expansion to support a feasibility study, with Kalaaq to be drilled next year.

-- Graphite is a core component of EV batteries, which is driving demand and prices; the high quality and flake size of Amitsoq's product is ideal for the manufacture of battery grade spherical graphite required for the anode of lithium-ion batteries, thus well positioned to capitalise on the Net Zero transition.

-- Demand for graphite is forecast to soar 10-fold; UBS estimates a natural graphite deficit of 3.7Mt by 2030, representing circa 37% of the market.

GreenRoc's Interim CEO, Lars Brünner, commented:

"The Amitsoq Project, comprising the Amitsoq Island and Kalaaq deposits, is one of the highest-grade graphite deposits globally. Our focus is to continue building resource tonnage to a level that will support a detailed feasibility study, as part of our strategy to fast-forward this Project into commercial production. This Kalaaq Exploration Target, coupled with the current maiden resource at Amitsoq Island of 8.28Mt at an average grade of 19.75% Cg, underpins the significant resource and, in turn, the enormous value potential of Amitsoq. Additionally, we have designed a clear development strategy to ensure GreenRoc delivers on this.

"Recent corporate investment activity in Greenland's strategic minerals space tells us that the time is now to advance exploration at our flagship projects. We intend to drill Kalaaq in 2023 in order to convert a substantial portion of the Exploration Target there to a compliant resource. Meanwhile, preparations for Phase 2 drilling at the Amitsoq Island deposit are well underway, and we expect to commence drilling this month as we target a higher-tonnage, higher-category resource which will support the development of a mine plan and feasibility studies. We look forward to sharing further updates on our activities at Amitsoq in the weeks and months ahead."

Figure 1 . Amitsoq Graphite Project in southern Greenland, showing Amitsoq Island graphite deposit to the north (site of the former graphite mine) and Kalaaq deposit to the south

Details

Alba Mineral Resources plc, which previously owned the Amitsoq project before spinning out its entire Greenland portfolio to GreenRoc in September 2021, commissioned Dr John Arthur (CGeol FGS) to prepare an Exploration Target for the Kalaaq deposit in southern Greenland. Dr Arthur is a Chartered Geologist and qualifies as a Competent Person/Qualified Person (as defined by CRIRSCO and the majority of National Reporting Organisations). The Exploration Target subsequently announced on 7 May 2021 had a tonnage range of 4 Mt-7 Mt ) (assuming a density of 2.63t/m3) and a grade range of 23-29% Graphitic Carbon ('Cg').

Following the conclusion of the 2021 field season at Kalaaq, Dr Arthur was commissioned by GreenRoc to update his Exploration Target. Following a detailed assessment of all pertinent data sets, Dr Arthur has concluded that the volume and grade ranges for the Kalaaq Exploration Target are between 6 and 10 million tonnes (assuming a density of 2.63t/m3) with a grade range of between 17-33% Graphitic Carbon, for between 1 Mt and 3.3 Mt of contained graphite.

In accordance with the JORC Code (2012), the potential quantity and grade of the above Exploration Targets 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.

The data used for the revised Exploration Target includes all surface channel sampling and field mapping carried out during the 2021 field season as well as information validated from previous surface mapping and investigations.

The revised Exploration Target incorporates additional areas along strike to the south (inland) from the previous reported Exploration Target as well as the newly discovered bodies in the south-east and south-west. Based on the apparent continuity seen from the extended field mapping, the Competent Person considers an appropriate range for the Exploration Target tonnage to be between 6-10Mt and the range of grade (at a cut-off of 0.0% Cg%) to be between 17-33%.

In addition to the sampling, geophysical (beep mat) surveys and detailed structural mapping carried out previously, the updated Exploration Target for Kalaaq draws on additional field work carried out in 2021, namely additional mapping carried out further inland to the south, south-east and south-west and an additional 11 sample sites, seven of which were targeted channel samples for detailed sampling of the exposed mineralisation.

 
 
 
 

Figure 2. Exploration at Kalaaq showing the updated sample locations and results of updated field mapping after the 2021 field season.

Geological domain modelling was carried out to model the results of the field exploration data using the Seequent Leapfrog Geo(R) software. Continuity appears to be justifiable along strike as evidenced from the exposure on surface and identifiable topographic and structural features from surface mapping and structural analysis. A high degree of confidence in the geological continuity of the deposit structure is thus interpreted, at least in the vicinity of the sampling and mapping programmes.

Peer Group Comparison

The Amitsoq project is among the very highest-grade graphite projects in the world, with, to the Company's knowledge, only Talga's Vittangi project having higher average grades amongst all advanced (ie at least to Resource definition stage) projects globally.

If the revised Exploration Targets for each of the Amitsoq Island deposit and Kalaaq are successfully converted into defined Resources following the planned further drilling, this would maintain Amitsoq's position as one of the highest-grade projects globally with total Resource tonnage comparable to that of Vittangi (see Table 1).

Table 1. Comparison between GreenRoc and Talga flagship graphite projects

 
 Company      Market      Project         Reserves   Resources   ET      Grade   Contained   Combined      Stage 
               Cap                         (Mt)       (Mt)        (Mt)    (%)     Ore (Mt)    Contained 
                                                                                              Ore (Mt) 
              A$385.5m 
   Talga        (ASX:       Vittangi 
    Group        TLG)        (Sweden)     2.26                           24      0.5447      7.74          Feasibility 
             ----------  --------------  ---------  ----------  ------  ------  ----------  ------------  ------------ 
                                                     30.1                24.1    7.2 
  -------------------------------------  ---------  ----------  ------  ------  ----------  ------------  ------------ 
                             Amitsoq 
  GreenRoc                    Island                                                                       Resource 
   Mining      GBP6.7m     (Greenland)               8.28                19.75   1.63         2.53-4.93     and ET 
            (AIM:                                                                              (midpoint 
             GROC)                                                                             3.73) 
 --------------------------  ----------  ---------  ----------  ------  ------  ----------  ------------  ------------ 
                                                                 5-15    18-22   0.9-3.3 
  -------------------------------------  ---------  ----------  ------  ------  ----------  ------------  ------------ 
                              Kalaaq 
                           (Greenland)                           6-10    17-33   1.0-3.3      1.0-3.3      ET 
                                                                                               (midpoint 
                                                                                               2.15) 
  -------------------------------------  ---------  ----------  ------  ------  ----------  ------------  ------------ 
 

Amitsoq Drilling Update

Further to our RNS of 6 June 2022, preparations on site for the phase 2 drilling programme at the Amitsoq Island deposit are well advanced, and drilling is expected to commence this month (see Figure 3 below).

Figure 3. Installation of base camp at Amitsoq in readiness for start of phase 2 drilling (June 2022).

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

 
 Cg%                   Contained graphite as a percentage of the total 
                        rock. 
 cut-off               Applicable to Resources only. 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. 
                      ---------------------------------------------------------- 
 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. 
                      ---------------------------------------------------------- 
 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.

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.

**S**

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% 
                                -----------  ---------- 
 

[1] 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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END

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