Alba Mineral Resources PLC Summary of Geochemical Sampling at Amitsoq (3937A)

TIDMALBA

RNS Number : 3937A

Alba Mineral Resources PLC

28 December 2017

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Alba Mineral Resources plc

("Alba" or the "Company")

Summary of Geochemical Sampling at Amitsoq

Alba Mineral Resources plc (AIM: ALBA) is pleased to report the geochemical assays from the Amitsoq project (the "Project") in southern Greenland. The samples consist of stream sediment and grab samples as part of a gold exploration programme, grab samples to test the presence of platinum group metals (PGMs) in an ultramafic dyke, and grab samples of graphite occurrences throughout the licence area.

Highlights

-- Thirty-three graphite samples were analysed from ten (10) areas and contained an average graphitic carbon content of 20.88% carbon.

-- Graphitic carbon content at the new Kalaaq graphite showing averaged 25.62% carbon, with a maximum content of 29.0% carbon.

-- Trace element geochemistry of graphite samples showed that they were low in potentially deleterious elements (As, Cd, Hg)

-- Grab samples collected from a sulphide-rich area of the Amitsoq hornblende peridodite dyke contained 0.3 g/t platinum, 0.3 g/t palladium, and 0.3 g/t gold.

-- Stream sediment and grab samples collected over the licence area indicate that only the Søndre Sermilik target contains elevated gold (up to 0.4 g/t) and copper (up to 0.77%) concentrations in previously untested structures.

Graphite Sampling

As reported on 18 July 2017 and 26 September 2017, the first phase of 2017 fieldwork on the Project in southern Greenland produced the following results:

-- Identification of several graphite horizons along strike and proximal to the Amitsoq graphite mine coincident with airborne EM anomalies.

   --     Two new areas of thick (greater than 1 m) graphite beds were identified: 

o The first area is located 8.75 km to the north-east of the former Amitsoq mine, and corresponds to a strong EM anomaly, with a true thickness of at least 4.85 m. This area was named Target 42, based on the EM anomaly number.

o The second area is located on the mainland portion of Alba's licence, 11.5 km north-northeast from Nanortalik, and is known as the "Kalaaq" discovery zone. The zone consists of at least three beds of apparently purer graphite than within the Amitsoq mine area, with true thicknesses of up to 7 m, and where they have been folded the beds are postulated to attain thickness up to 15 m. The beds are mapped over a distance of at least 460 m.

Fieldwork conducted during the summer 2017 field programme included the collecting of grab and channel samples for all graphite units encountered which had a thickness greater than 0.5 m.

A total of 33 graphite samples collected during the summer 2017 fieldwork programme have now been analysed by OMAC Laboratories (a subsidiary of ALS Limited), Loughrea, Ireland. The analysis is presented in Table 1 below.

Table 1: Graphite analyses

 
                    Graphitic   +/-      As       Cd       Hg       No. 
                      Carbon     STD    (ppm)    (ppm)    (ppm)      of 
                       (%)                                         samples 
-----------------  ----------  -----  -------  -------  -------  --------- 
      Sønder 
         Sermilik       17.25      -     0.11     0.11     0.01          1 
-----------------  ----------  -----  -------  -------  -------  --------- 
           Target 
               42       11.98   8.08     5.01      0.5     0.02          8 
-----------------  ----------  -----  -------  -------  -------  --------- 
           Valley        25.5   2.82     10.6     0.03     0.02          3 
-----------------  ----------  -----  -------  -------  -------  --------- 
        Portussoq       18.45   1.27     5.65     0.49     0.02          2 
-----------------  ----------  -----  -------  -------  -------  --------- 
  North Anchorage        2.75      -      1.4     1.35     0.01          1 
-----------------  ----------  -----  -------  -------  -------  --------- 
           Target 
                4        26.3      -      2.1     0.03     0.02          1 
-----------------  ----------  -----  -------  -------  -------  --------- 
          Amitsoq 
             Mine       23.91   3.79     0.66     5.86     0.02          4 
-----------------  ----------  -----  -------  -------  -------  --------- 
           Kalaaq       25.62   2.22     4.75     2.72     0.01         13 
-----------------  ----------  -----  -------  -------  -------  --------- 
 

The Kalaaq discovery zone contains the thickest graphite accumulations (with the exception of the lower bed at the Amitsoq mine) and the highest average graphitic carbon (GC) grade of 25.62%, with one sample from a 3m wide bed containing 29.00% GC. The average graphitic carbon grade at Kalaaq obtained from grab samples is almost identical to the channel samples collected from the lower 16.5 m thick bed at the former Amitsoq mine, where the average grade was 25.6% GC (Alba RNS, 12/04/2017).

The Valley graphite showing comprised of three samples present on the north side of a large valley that bisects the middle of Amitsoq Island. Three grab samples from this bed that attain true thicknesses up to 5 m averaged 25.50% GC, and warrant follow-up based on the carbon content.

The richest graphite-bearing grab sample collected during the field work was from Target 42, and contained 30.90% GC. However, the average graphitic carbon content from this 100 m long and up to 16 m wide outcropping zone was 11.98% (with a standard deviation of 8.08% GC).

Potentially deleterious elements such as arsenic (As), cadmium (Cd), and mercury (Hg) were also analysed (Table 1), but the concentrations recorded were very low and considered background for sedimentary rocks.

Platinum Group Metal (PGM) Sampling

Six grab samples were also collected during the summer 2017 fieldwork from a 50 m wide hornblende amphibolite dyke that cuts the granitic gneiss comprising the northern part of Amitsoq Island. Two of the samples were collected from the west side of the island, and four samples were collected from the east side. None of the western samples were considered anomalous with respect to platinum, palladium, gold, or associated base metals (copper, nickel, or cobalt). However, one sulphide-rich sample collected from the east contact zone of the dyke contained 0.33 g/t Pt, 0.38 g/t Pd, 0.13 g/t Au, 0.46% Ni, 0.21% Cu, and 602 ppm Co. The three other samples collected from the eastern side of the dyke contained 0.04 g/t Pt, 0.05 g/t Pd, and 0.01 g/t Au. The elevated PGM concentrations in the sulphide-rich sample suggest that the mineralizing system is PGM-bearing, and additional work along the dyke margins should be performed.

Sampling by Platinova in 1988 indicated that PGM grades were higher in the eastern side of the dyke compared to the western side. From 16 samples collected, the average metal concentrations were 0.082 g/t Pt, 0.080 g/t Pd and 0.023 g/t Au.

Stream Sediment Sampling and lithogeochemical prospecting for gold and base metals

A total of 70 samples were collected and submitted for geochemical assaying, with an appropriate number of standards and blanks, to OMAC Laboratories Limited, Ireland, and analysed for gold and 51 other elements. The primary purpose of the sampling program was to determine if gold was present on the Amitsoq licence, since it is adjacent to the licence containing the Nalunaq gold mine, and it has similar rocks and structural features. Thirty-eight (38) of the samples were coarse stream sediment samples, 11 scree samples collect from the upper reaches of scree cones (and used as a proxy for stream sediment samples), 7 float samples, and 14 grab samples collected from outcrops. A summary of the results is tabulated in Table 2.

Table 2 shows that no appreciable concentrations of gold were recorded within the stream sediment samples. The highest concentration was present on the north in the southern part of Amitsoq (22 ppb Au) and the second highest sample (containing 17 ppb Au) was located in the southern part of the licence. The highest gold concentration record from a scree sample was 10 ppb, near the centre of Amitsoq.

Table 2: Lithogeochemical samples analysed for gold (Au)

 
 Type                       No.       Average    Sample >    Max Au concentration 
                         of samples      Au      Limit of            (ppb) 
                                       (ppb)     detection 
                                                  (1 ppb) 
---------------------  ------------  --------  -----------  --------------------- 
 Stream 
  Sediment                  30         4.55         20                22 
---------------------  ------------  --------  -----------  --------------------- 
 Scree                      11          6.5         4                 10 
---------------------  ------------  --------  -----------  --------------------- 
 Grab (outcrop)             14         59.8         10               404 
---------------------  ------------  --------  -----------  --------------------- 
 Float (transported)         7          4.0         3                 5 
---------------------  ------------  --------  -----------  --------------------- 
 

Only 7 float samples were collected and analysed during the fieldwork, and two of the samples sulphide-rich samples from the Søndre Sermilik area contained the highest gold concentrations of 5 ppb. Additionally, both of these samples contain anomalous levels of zinc (1550 and 789 ppm) and silver (1.21 and 1.34 ppm).

With the exception of one grab sample on Amitsoq, all of the samples containing more than the limit of detection of gold were from the Søndre Sermilik area of the licence. The samples were collected from a gossanous zone associate with mafic sill that had intruded between a lower biotite gneiss unit and an overlying quartzite unit over a distance of 700 m, and a small granite intrusion cut by a late southwest-trending fault. The fault cutting the intrusion contained malachite stained quartz that assayed 404 ppb Au (0.404 g/t Au), 4.82 ppm Ag, and 0.77% Cu, and a second sample 50 m away that contained 98 ppb Au, 5.09 ppm Ag, and 0.67% Cu. The third highest gold concentration from the area was within the gossan zone (61 ppb).

The presence of gold mineralization was previously noted in the Sønder Sermilik area by Atlas Precious Metals in 1993, but the vast majority of sampling in the area focused on the gossanous zones, where weak gold anomalism (10-30 ppb) was noted. No methodical sampling of the fault zone containing patches of malachite-staining was undertaken.

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

George Frangeskides, Executive Chairman

[phone]

Cairn Financial Advisers LLP (Nomad)

James Caithie / Liam Murray

[phone]

First Equity Limited (Broker)

Jason Robertson

[phone]

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, Association of Professional Geoscientists of Ontario, and a Fellow of the Society of Economic Geologists. He is a geologist with fifteen years' 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.

Alba's Project Portfolio

Oil & Gas

Horse Hill (Oil & Gas, UK): Alba holds a 18.1 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.

Brockham (Oil & Gas, UK): Alba has a direct 5 per cent interest in Production Licence 235, which comprises the previously producing onshore Brockham Oil Field.

Mining

Amitsoq (Graphite, Greenland): Alba owns a 90 per cent interest in the Amitsoq Graphite Project in Southern Greenland and has an option over the remaining 10 per cent.

Thule Black Sands (Ilmenite, Greenland): Alba owns 100 per cent of mineral exploration licences 2017/29 and 2017/39 in the Thule region, north-west Greenland.

Clogau (Gold, Wales): Alba owns 49 per cent of Gold Mines of Wales Limited, the owner of the Clogau Gold Project in north Wales incorporating the historic Clogau-St David's Mine.

Melville Bay (Iron Ore, Greenland): Alba is entitled to a 51 per cent interest in mineral exploration licence 2017/41 in Melville Bay, north-west Greenland. The licence area benefits from an existing inferred JORC resource of 67 Mt @ 31.4% Fe.

Inglefield Land (Copper, Cobalt, Gold): Alba owns 100 per cent of mineral exploration licence 2017/40 in north-west Greenland.

Limerick (Base Metals, Ireland): Alba has 100 per cent of the Limerick base metal project in the Republic of Ireland.

El Mreiti (Uranium, Mauritania): Alba has applied for the reissue of a uranium permit in northern Mauritania, centred on known uranium-bearing showings.

Website: www.albamineralresources.com

This information is provided by RNS

The company news service from the London Stock Exchange

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December 28, 2017 02:00 ET (07:00 GMT)