Trading Statement

RNS Number : 6430V

Alba Mineral Resources PLC

04 November 2010

 



4 November 2010

Alba Mineral Resources plc

("Alba" or "the Company")

Trading Update

Mauritania

Mauritania Ventures Limited ("MVL"), Alba's 50% owned subsidiary, previously relinquished all permits it held in the country, except for one, as a result of previous fieldwork failing to deliniate uranium mineralisation that merited further exploration. We continued to hold our interest in Permit 422 and on 30 April 2010 MVL paid the annual permit renewal fee to the authorities. However, on 3 November 2010 the Company was notified that the Mining Authorities in Mauritania had withdrawn the licence, citing a lack of additional exploration activity, even though the Company believed it had until 30 April 2011 to complete such activity. 

MVL are considering challenging and/or appealing this decision. In the meantime the Company are in discussions with a third party concerning our position and involvement regarding Permit 422 and also in Mauritania generally going forward.

Scotland

The maintenance of the Arthrath Ni-Cu-PGE project in Aberdeenshire remains a key component of the Company' strategy for the balance of 2010 and 2011.  The project area is held under private mineral right agreements with local landowners, who in 2009 agreed a moratorium on the payment of licence fees until the Company was able to raise additional funds. We still believe this project has significant potential as a sulphide Nickel target and we continue to seek joint venture partners to realise the potential of this poorly explored magmatic Ni-Cu-PGE exploration target.

Ireland

The Company owns two projects in the Republic of Ireland through its wholly owned Irish subsidiary Aurum Mineral Resources Ltd. (AMR).

Bohuan

The Company continues to hold two licences in the Bohaun Block in County Galway.  Stream sediment sampling completed in early 2007 identified anomalous gold in the area with concentrations of up to 113 ppb gold.  Follow-up prospecting in the area identified multiple auriferous float occurrences and importantly located a one-metre wide mineralized sulphide (galena, pyrite and minor chalcopyrite) vein in bedrock.  A channel sample across this vein returned an assay of 31.8 ppm gold, or approximately 1 ounce per tonne.  Alba is currently seeking a joint venture partner for this project.

Limerick

The company has retained one licence in it's Limerick Block, which it believes to be the most prospective In May 2010 a 178 m deep hole (AB3824-1) was drilled on this Limerick base metal licence. The hole was drilled to test the stratigraphy in the licence and also determine the cause of a large northeast-trending zinc soil anomaly detected by a previous operator.  The drillhole encountered 163.25 m sequence of variably dolomitized Waulsortian Limestone Formation before passing into the underlying Argillaceous Bioclastic Limestone (ABL) Formation.  The contact between the Waulsortian Limestone Formation and the ABL is the target horizon at the Xstrata/Minco and Connemara/Teck basemetal properties approximately 11 km to the northeast.  Xstrata/Minco recently released an inferred resource of 24.1 million tons with an average grade of 7.85 % zinc and 1.35 % lead on their property.  Minor iron oxide mineralization (oxidized pyrite) was noted from the Waulsortian Limestone Formation and pyrite observed in the ABL while the core was logged.  Assays from the core are pending. 

Preliminary interpretation of the core suggests that the zinc soil anomaly might be related to the presence of dolomite in the core.  Dolomite alteration in the carbonate rocks of the Irish Midlands is often, although not exclusively, associated with base metal mineralization. 

Following the successful completion of the drill hole AB3824-1 AMR received official confirmation from the Department of Cummunications, Energy and Natural Resources that the Limerick Prospecting Licence 3824 had been renewed for a six year period and is now due to expire on 27 May 2016.

The company is currently engaged in negotiations with a third party relating to a possible joint venture on the Limerick property.

Outlook

It seems inevitable that there will be minimal exploration work undertaken by the Company during the balance of 2010, unless additional funds can be raised. The Company's working capital position continues to be adversely affected and the Company is still seeking to raise further funds in the near term.  The Company continues to look to secure joint venture agreements where possible to fund exploration programs and its financial position is under constant review.  As stated above our exploration programmes can only be financed within our financial constraints.  As our exploration activities are limited currently, there is an increased risk that we may not be able to fulfill our obligations under existing licences, which may then be forfeited. 

The Board believes that if the Company can overcome its immediate funding requirements it will be better placed to grow both organically and by acquisition.

Furthermore, Alba continues to receive other corporate inquiries and each is considered on its relative merits. 

Managing Director's Statement

Michael Nott, Chairman and Managing Director, Alba Mineral Resources commented, "The Company will be looking to raise additional funds in the foreseeable future to enable it to continue to advance the development of its project portfolio and will continue to look at alternative ways of trying to create value for its shareholders.".

ENDS

Enquiries

Michael Nott, Managing Director
Alba Mineral Resources plc                                                                                         Tel: [phone]

Stuart Lane

Northland Capital Partners Limited                                                                          Tel: [phone]

QUALIFIED PERSON STATEMENT

EurGeol. Dr. Sandy M. Archibald, PGeo, Technical Director of Alba has reviewed the information contained herein.  Dr. Archibald has suitable experience and qualifications, which is relevant to the style of mineralization under consideration and to the activity he is undertaking as a qualified person as defined by the Guidance Note for Mining and Oil & Gas Companies under the AIM Rules for Companies.

 

END

 

 

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