Alba Mineral Resources (ALBA ) announced interim results for the 6 months ended 31 May 2022 (1H22), with a particular focus on the development of its Welsh gold projects and progress at investee companies.
Welsh Gold Projects
Alba reported progress at Clogau-St David's Gold Project where preliminary drilling and analytics gave the company confidence in the potential of its two primary targets, the Lower Llechfraith and the Main Lode Extension, to contain high-grade gold resources.
Outside the mine area at Clogau, the second phase of Alba's exploratory work at the waste tip was a success, the company said. It returned average assay grades of 3.5 g/t with gold concentrates produced at the on-site pilot plant at an average grade of 502 g/t. Alba said this indicated real potential for the waste tip to be separately mined for gold.
Alba recently announced the acquisition of the remaining 10% interest in the Clogau-St David's Gold Project. The company now owns 100% of its Welsh gold projects.
GreenRoc Mining
Alba included GreenRoc Mining (GROC ) in its half-year report as it holds a 54% interest in the company.
As previously reported, GreenRoc was admitted to trading on AIM in September 2021, and has since made significant progress in relation to its flagship projects Amitsoq (graphite) and Thule Black Sands (ilmenite) in Greenland.
In March 2022, a maiden JORC Resource was announced for Amitsoq of 8.3m tonnes at an average grade of 19.75% Cg, confirming Amitsoq to be one of the highest-grade graphite projects in the world. Meanwhile, the exploration target for the Amitsoq Island deposit has increased to 5-15Mt at a grade range of 18-22% Cg, and for the separate Kalaaq deposit to 6-10 Mt at a grade range of 17-33% Cg.
Additionally, a drilling programme is ongoing at Amitsoq, targeting a significant increase in the JORC resource there. The company reported nine holes drilled as of 14 August, for a total of 1360m. All holes have intersected targeted graphite layers, essentially doubling the deposit footprint and revealing a significant potential upgrade to the resource of the project.
At Thule Black Sands, following a 2021 drill programme, a revision to the current maiden JORC Resource of 19Mt at 8.9% in-situ ilmenite is expected in the coming weeks, the company said.
As previously reported, two Denmark-based consulting firms have been engaged to commence work on Environmental and Social Impact Assessment (EIA and SIA) studies necessary for future exploitation licence applications.
Irish Base Metals
The mineral exploration license for Alba's wholly-owned Limerick Base Metals Project, PL 3824, was renewed until 26 May 2024.
Alba has identified three exploration target areas for follow-up drilling at Limerick. Permit applications have been submitted with drilling expected to commence before year end.
Financial Results and Outlook
While administrative costs were lower for the period under review, certain transaction fees relating to the GreenRoc IPO were incurred. Alba recorded a £815K loss, reflecting increased costs associated with GreenRoc's listing on AIM. The loss attributable to Alba equity holders for the period were £592K after tax.
At the end of H1, Alba had £2m in cash. Net cash outflows were £1.9m, including £0.94m expenditure on exploration projects and fixed assets. Intangible assets increased by £3m year-on-year, reflecting Alba's investment in exploration in Wales and Greenland since 31 May 2021.
George Frangeskides, Executive Chairman, summarised: "Alba remains in a strong position to generate real and sustained growth across its portfolio of assets and investments and also continues to assess opportunities to expand its portfolio value by the acquisition of additional complementary assets."
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