Alba Mineral Resources (ALBA ) has noted a statement from GreenRoc Mining in which the company has confirmed the high-grade nature of the Amitsoq Island deposit in Greenland.
Following the release of assay results from a drilling and channel sampling programme undertaken at the deposit between June and August 2021, GreenRoc said the deposit contains graphite layers ‘both thicker, and more consistent, than previously thought.’
GreenRoc’s CEO, Kirk Adams, said the assays taken from the Group’s phase 1 drilling programme on the Amitsoq Island graphite deposit in Greenland between June and August 2021,confirm the deposit to be “one of the highest-grade graphite deposits in the world.”
The drill core and channel sample assays confirm the presence of high-grade graphite mineralisation at the deposit while increasing true widths observed down dip on both the upper and lower graphite layers support the potential for a sizable JORC Resource.
Addressing shareholders, Adams outlined: “In the lower graphite layer, the drill core assays are grading up to 23.01% contained graphite, with an average of 22.56%.
Furthermore, the drilling has shown that the true width of this layer below the old open pit mine widens with depth, increasing from 13.2 m to 14.95 m at around 100 m down dip from surface.
In addition, the upper graphite layer also showed similar consistency, with drill core assays of up to 19.83%, and an average of 18.91%, containing graphite. Adams detailed to investors that this upper mineralised zone has therefore also shown “increasing true widths with depth.”
GreenRoc said today’s set of assay results have given the company the confidence for the step-out drilling programme which it has planned for 2022. It added that it is positive about the prospects for the ultimate resumption of mining at the Amitsoq Island deposit in Greenland.
The Company explained that the set of assay results will be ‘a key element’ in the mineral resource estimation assessment which will be made by the Competent Person in due course.
In preparation for Phase 2 drilling, GreenRoc said discussions have been held with key contractors including drilling companies. In addition, the Company has had wooden storm-proof stairways constructed at key points on Amitsoq Island, to facilitate future drilling.
GreenRoc has also received the results of the first-year baseline environmental studies.
The environmental and ecological data obtained will inform the design of the second year of baseline studies which GreenRoc intends to carry out next year, ‘leading into the formal environmental and social impact studies required to apply for a mining licence for Amitsoq.’
At the end of September 2021, Alba Mineral Resources confirmed to investors that GreenRoc Mining, a spin-off vehicle based on its Greenland mining assets, had begun trading on AIM.
On its first day of dealings, GreenRoc Mining announced that it has raised £5.12 million at 10p a share, valuing the company at £11.1m upon its admission to London’s junior AIM market.Alba will be majority shareholder of GreenRoc with a 54% stake in the new vehicle.
Under the terms of the spin-off, GreenRoc has now acquired all the Greenlandic mining assets of Alba Mineral Resources being the Thule Black Sands Ilmenite Project, the Amitsoq Graphite Project, the Melville Bay Iron Project and the Inglefield Multi-Element Project.
The Company intends to progress exploration and development activities in respect of the Greenland Projects ‘with the aim of securing a mining licence and commencing commercial production at one or more of the projects within the earliest practicable timescale.’
The London-listed firm announced in its final results for the year ended 30 November 2020 published back in May 2021 its intention to form a new AIM-quoted, Greenland-focused, spin-out company that would unlock ‘real and sustained value’ across its asset portfolio.
The plan formed after the pandemic had placed some doubt upon Alba’s ability to execute its field programmes, particularly at the Amitsoq Graphite Project where it had plans to drill.
At the time, it said it believed that moving the Greenland Projects into a new listed vehicle would allow the market to set ‘a clear value for those assets in isolation’ rather than as part of a larger pool of diverse mining, oil and gas and exploration assets, as is currently the case.
According to the European Commission, nearly half of the EU’s supply of natural graphite and titanium is provided by China, highlighting the EU’s overdependence on Chinese supply.
GreenRoc said its strategy of seeking to fast-track the development of the Amitsoq and the Thule Black Sands Ilmenite Projects are therefore supported by both the US and the EU.
In recent weeks, more investors have turned their eyes towards Greenland after KoBold Metals, a mineral exploration firm backed by Jeff Bezos and Bill Gates, signed an agreement with Bluejay Mining to search for critical materials used in EV vehicles within the region.
Kirk Adams, Chief Executive Officer of GreenRoc, told shareholders that GreenRoc’s debut on AIM comes at a time when demand for critical minerals is “increasing significantly.”
“Our objective is to fast-track exploration, supported by our successful £5.12m fundraising, to significantly add to the inherent value of our assets and move towards development.
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