Alba Mineral Resources (ALBA) has declared a significant exploration target for the Amitsoq Graphite Project in southern Greenland following a detailed independent assessment. 

The company had previously commissioned Dr John Arthur, a Chartered Geologist who qualifies as a Competent Person/Qualified Person. to prepare an Exploration Target for each of the Amitsoq and Kalaaq deposits which together comprise the Amitsoq Graphite Project. 

Utilising all data sets, he has now concluded that the volume and grade ranges for the Amitsoq Exploration Target are between 1.7 and 4.5 million tonnes with a grade range of 24-36% Graphitic Carbon, for between 408,000 and 1,620,000 tonnes of contained graphite.

In addition, the volume and grade ranges for the Kalaaq 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, for between 920,000 and 2,030,000 tonnes of contained graphite.

In accordance with the JORC Code (2012), the potential quantity and grade of the above Exploration Target for each of the Amitsoq and Kalaaq deposits is conceptual in nature.

The company said there has been insufficient exploration to estimate a Mineral Resource and it is therefore uncertain if further exploration will result in the estimation of a Mineral Resource.

Alba has informed investors that the Amitsoq component of the above Exploration Target will be tested in a forthcoming drilling programme, details of which will be released in due course.

"We commissioned this independent assessment of the potential quantity and grade of the graphite at the Amitsoq Graphite Project in order to provide support for there being significant tonnage potential at the Project,” said George Frangeskides, Alba's Executive Chairman.

He added, “Having now declared an initial Exploration Target of between 1.3 to 3.6 million tonnes of contained graphite for the two deposits combined, this gives us great confidence to move forward to a drilling programme at Amitsoq. The first aim of our drilling programme will be to declare a maiden JORC-compliant Mineral Resource Estimate at the Amitsoq deposit.”

To date, the company’s test work programme has not only confirmed that its graphite has exceptionally high average grades “but also that it is battery grade material which can be sold into the electric vehicle sector, which is by far the largest growth market for graphite,” it noted.

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Today’s news, in which Alba has declared a significant exploration target for the Amitsoq Graphite Project follows the group’s recent statement that test work on graphite from the graphite project had confirmed the suitability of the graphite for Lithium-Ion Batteries ("LIBs").  

LIBs are already the fastest growing market for flake graphite, with massive growth rates forecast for the next decade. In particular, graphite is the anode material in lithium-ion batteries which are used to power electric vehicles and domestic electricity storage systems. 

Graphite, which is an essential component in certain critical technological advances that are at the forefront of the drive to reduce global CO2 emissions, is the anode material in LIBs which are used to power electric vehicles and domestic electricity storage systems globally. 

Looking ahead, Alba said it can continue its plans to define a large-tonnage deposit at Amitsoq in the knowledge that its graphite “not only has exceptionally high average grades but is also battery grade material which can be sold into the electric vehicle sector.” 

Reasons to Follow

Alba Mineral Resources is a well-diversified exploration and development company which owns and operates mining projects in Greenland, Wales and Ireland. Its strategy is to identify and secure undervalued assets with a diversified commodity mix where there is potential for discovering further unexploited resources alongside the existing mine site.  

Limerick Base Metals Project  

Historically, only eight drillholes have been completed within Alba’s Project area of the Limerick Base Metals Project, the most recent being the three holes drilled in Q2 of 2019.  

Alba said these low levels of drilling are unusual in the Irish context and, for this reason, the area is considered under-explored. Alba has previously identified a number of attractive targets that have never been drilled before.   

Alba’s current technical team, led by Mark Austin, Alba’s COO and Senior Geologist, will undertake a comprehensive review of the licence area before determining the next phase of planned exploration activities.   

The expenditure conditions attaching to the renewal of PL 3824 require Alba to incur expenditure of €15,732 by 26 May 2021 with a further €50,000 to be spent by 26 May 2022.    

JORC Resources expected  

Despite losing field time to the COVID-19 pandemic, Alba said it is in a position to execute one of the most significant underground work programmes seen for several decades at its Clogau gold mine in Wales, just as the commodity is reaching all-time highs in value.     

Alba said its mining projects remain on ‘a sound footing’, with JORC resources at both Thule Black Sands and Melville Bay, and plans to drill a maiden JORC resource at Amitsoq in 2021.   

Amitsoq  

In recent weeks, Alba said an independent testwork programme at the Group’s Amitsoq graphite project in southern Greenland has confirmed ‘very high carbon content.’ Due to the high carbon content, the product would offer ‘a significant advantage, as no purification would be needed to achieve that level,’ the Company explained to investors.  

Accordingly, subject to certain follow-up testwork which the Group said is recommended, the testwork successfully indicates the suitability of Amitsoq graphite as feed material for Lithium-Ion Batteries ("LIBs"), the fastest growing market for flake graphite globally.   

‘This finding that the concentrate appears to be suitable for LIBs is significant, as the market for LIBs is the fastest growing market for flake graphite, with massive growth rates forecast for the next decade due to the expected demand for LIBs in electric vehicles,’ Alba outlined.  

Transition from Exploration to Production in Greenland and Wales  

Other ‘significant’ progress has also been made in recent years towards Alba’s ultimate goal of achieving commercial production at one or more of its sites, including at the Thule Black Sands in Greenland, the Amitsoq project in Greenland and the Horse Hill well in Surrey.   

In 2020, Alba has announced that surface trenching activities would kick-start over the first of the group’s 10 regional gold targets over the Dolgellau Gold Field.    

The trenching will target the first of 10 separate new gold targets over the Dolgellau Gold Field which have previously been identified by Alba.    

Alba said up to eight trenches have been planned in this first phase, each varying in length from 40-90m for a total of 575m, with each trench being 1m wide and up to 2m deep.   

Once exposed, the quartz veining and other structures from the trenches, those of which are pictured below, will be sampled, and those samples sent to a laboratory for assaying.  

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