Amitsoq Project Update

RNS Number : 0093O

Alba Mineral Resources PLC

04 February 2016

 



4 February 2016

       Alba Mineral Resources plc

       ("Alba" or the "Company")

Amitsoq Project Update

Highly Encouraging Results from Iron Oxide Alteration Remote Sensing Study,

Amitsoq Graphite Project, Southern Greenland

Further to the announcement of 30 November 2015, Alba Mineral Resources plc (AIM:ALBA) has now completed an iron oxide (FeO) alteration remote sensing (satellite) study on the Amitsoq graphite project (the "Project") near Nanortalik in southern Greenland.  The interpreted results are highly encouraging and provide numerous target areas for follow-up ground work and geophysics.  The results reveal iron oxide anomalies associated with graphite horizons at the historic Amitsoq graphite mine, which are traceable along strike and likely represent additional graphite exploration targets.  The study also identified anomalies associated with known platinum group mineral occurrences, and coincident anomalies with geology that are similar to economic gold mineralization located 24 km along strike at the Nalunaq gold mine.

HIGHLIGHTS

·     Remote sensing study highly encouraging, highlighting several anomalies for a variety of commodities

·     Numerous and continuous graphitic horizons suggested along strike and proximal to the Amitsoq graphite mine. 

·     FeO anomalies are coincident with known graphite occurrences at the former Amitsoq graphite mine

·     Two zones contain multiple lenses of interpreted bedded graphite occur along strike 2.5 km and 5.8 km to the northeast of the Amitsoq mine

·     Additional FeO anomalies are interpreted to be favourable targets for platinum group metals, orogenic lode gold and intrusion related copper-zinc mineralization

·     Anomalies identified with geology similar to economic gold mineralization at the nearby Nalunaq gold mine (circa 340,000 ounces of gold produced to date)

Remote Sensing (Satellite) Study

PhotoSat (Vancouver, Canada) was commissioned to complete an iron oxide (FeO) remote sensing study using 50-cm pixel resolution WorldView-2 satellite images.  The study covered an area of 292.5 km² and identified areas of iron oxide alteration in all parts of the licence. Interpretation of the processed FeO alteration images was performed by Aurum Exploration Services to place the alteration in a geological context, and used as a proxy to locate potentially exploitable graphite resources.  Remote sensing is not typically used to identify bedded graphite deposits but where graphite mineralization is mixed with sulphides (usually pyrite, such as at Amitsoq) the presence of iron oxides can be used as a proxy for graphite.  Pyrite is a common mineral in many geological environments and the presence of iron oxides can also be simply attributed to weathering of iron-rich rocks such as shales, mafic intrusions, and iron-rich minerals in granite.  

The interpretation of the processed images indicate linear anomalies are well developed over outcrops and open-cuts of mined graphite-bearing gneiss, and broad FeO anomalies are associated with the former processing plant at Amitsoq (Figure 1).  Based on these positive correlations, additional FeO linear anomalies were identified over the entire licence.  Strong and abundant anomalies in the south of Amitsoq Island are interpreted to be associated with a highly metamorphosed turbidite rock package containing pyritic- and graphitic gneiss.  Two areas, located 2.5 km and 5.8 km north-eastward and along strike from Amitsoq mine, respectively, show the most potential since up to 15 FeO-rich continuous and semi-continuous units are present in the area (Figure 2).  However, it is cautioned that it is unlikely that all of these units will be graphite-bearing.

Linear anomalies in the north of Amitsoq Island are interpreted to relate to detrital iron minerals, probably magnetite, within a clastic (sandstone, arkose and conglomerate) unit.  Many anomalies on Amitsoq Island and mainland are related to intrusions (granite, diorite and gabbro) and caused either by the presence of iron-rich minerals or reaction with the country rock.

One anomaly was associated with a gossan in a 90 to 250 m wide, east-west trending hornblende-peridotite dyke that the Greenland Geological Survey sampled in 1970, and recorded metal concentrations up to 0.4 g/t platinum, 0.6 g/t palladium, 0.2 g/t gold and 7 g/t silver.  Platinova Resources Ltd investigated the dyke (known as Craig's Dyke, or the Amitsoq Dyke) in 1987 and noted an average sulphide content of 0.2 vol. %, but locally reached 15% in 10-20 cm wide zones.  Sulphides identified included pyrrhotite, pentlandite, chalcopyrite, and cubanite.  No assay values for copper and nickel have been reported from the showing.  Seven additional east-west trending FeO anomalies are present to the north of this known intrusion and are considered a priority for follow-up work.

A broad FeO anomaly is associated with a mafic intrusion in the south of the licence.  The anomaly could be caused by weathering of mafic minerals in the intrusion, the presence pyrite in a thrust fault, or related to mineralization at the base of the intrusion.  The same intrusion 24 km to the northeast hosts the Nalunaq gold mine. The Nalunaq gold mine has produced approximately 340,000 ounces of gold with very high grade gold mineralisation (refer to http://arctic-resources.com).  The nature of the anomaly found by the remote sensing study is unknown, so field work must be performed to determine the cause of the alteration.

Another broad anomaly is present in the north of the anomaly and occurs 1 km due east of a copper-zinc showing.  Interpretation of the satellite image suggests this anomaly is caused by a small intrusion.  Fieldwork is required to determine if the alteration is related to the mineralization.

Proposed Future Work

The FeO alteration remote sensing study is based on integration of the images with the known geology.  In order to identify the true nature of the anomalies site visits are required to the seventeen areas identified from the Aurum Exploration Services study.  Geological mapping and geochemical sampling will determine if the areas are prospective for a variety of commodities (graphite, gold, PGMs, copper-zinc).

An airborne electromagnetic (EM) and magnetic study is proposed to help define the geology and identify graphitic horizons.  During the same survey a digital elevation model (DEM) can be constructed from the flight data to assess access to target areas.  It is anticipated that this work will commence in the summer of 2016. 

Additional maps showing the results of the FeO remote sensing study area are available on the Alba website at www.albamineralresources.com.

Mike Nott, Alba's CEO, commented:

"The results from the remote sensing study are highly encouraging for a variety of commodities. The main commodity emphasis is graphite, and several anomalies suggest numerous and continuous horizons along strike and proximal to the Amitsoq graphite mine.  We have previously demonstrated that Amitsoq contains large flake size graphite and is of a high-grade."

"The next phase of exploration involves an airborne geophysical survey, followed by the ground checking of coincident alteration and geophysical targets.  If results are positive, then an exploration drilling programme to estimate the thickness and continuity of the graphite horizons will begin."

"We look forward to a busy and successful work programme in 2016."

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, and a Fellow of the Society of Economic Geologists.  He is a geologist with fourteen years of 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.

For further information please contact:

Alba Mineral Resources plc Michael Nott, CEO	[phone]
Cairn Financial Advisers LLP Avi Robinson / James Caithie	[phone]
Dowgate Capital Stockbrokers Limited Jason Robertson / Neil Badger	[phone]

Additional Information

Alba holds a 15 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.

Alba has the right to earn up to 70 per cent of the Amitsoq Graphite Project in Southern Greenland (refer to our announcement of 6 October 2015).

In addition, the Company holds a base metal licence in the Republic of Ireland, and has applied for the reissue of a uranium permit in northern Mauritania.  The new Mauritanian permit will be on a reduced area, and is centred on known uranium-bearing showings.

Alba continues actively to review and discuss other project opportunities which have value-enhancing potential for the Company whether by acquisition, farm in or joint venture in a range of jurisdictions around the world.

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