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Alba Mineral Resrcs. (ALBA)

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Tuesday 31 August, 2021

Alba Mineral Resrcs.

Half-year Report

RNS Number : 2392K
Alba Mineral Resources PLC
31 August 2021
 

Alba Mineral Resources plc

("Alba" or the "Company")

 

HALF-YEARLY REPORT

 

The Board of Directors of Alba Mineral Resources plc (the "Company" or "Alba") is pleased to report the Company's interim results for the six months ended 31 May 2021. They incorporate the results of its subsidiary companies Aurum Mineral Resources Limited ("AMR"), Mauritania Ventures Limited ("MVL"), Obsidian Mining Limited ("OML"), White Eagle Resources Limited ("WERL"), White Fox Resources Limited ("WFRL"), Dragonfire Mining Limited ("DML"), the Gold Mines of Wales group of companies ("GMOW"), GMOW (Gwynfynydd) Limited and GreenRoc Mining Plc (formerly Pole Star Resources Plc) (together, the "Subsidiary Companies", collectively with Alba, the "Group").

 

CHAIRMAN'S STATEMENT

 

The six months to 31 May 2021 have seen the Company:

 

complete successful drilling programmes at the Clogau-St David's Gold Mine, which have enabled us to define a potential 550 m extension to the Main Lode as well as a vein system extending 122 m below the deepest previously worked zone at the Llechfraith mine area;

 

carry out a sampling exercise over the rock waste dump at Clogau St-David's, with several pits dug and around 15 tonnes of material extracted per pit;

 

purchase and install a dedicated pilot gold processing plant at Clogau-St David's, with the first set of assay results on bulk sample concentrates produced from the plant returning notable concentrate grades of 20.4 to 165.5 g/t;

 

renew our exclusive mineral rights over the Dolgellau Gold Belt for a further four years;

 

renew our base metals exploration licence in Ireland until May 2022 and define three main target areas for follow-up drilling there;

 

carry out purification test work in Germany which has confirmed the suitability of Amitsoq graphite for the production of high purity (99.95%) spherical graphite for lithium-ion batteries;

 

appoint an independent competent person to review the resource potential at Amitsoq, resulting in the declaration of a large tonnage, high-grade exploration target for both the Amitsoq and Kalaaq graphite deposits;

 

design and plan two extensive summer drilling programmes for the Amitsoq and Thule Black Sands projects in Greenland;

 

announce the divestment of Alba's Greenland assets into a separate vehicle which, subject to regulatory approval, will be admitted to trading on AIM; and 

 

appoint two new, high-profile Non-Executive Directors to the Board.

 

 

1.  REVIEW OF ACTIVITIES

 

1.1 WELSH GOLD

(Clogau-St David's, Gwynfynydd, Dolgellau Exploration Project)

 

(a) Underground Drilling

A Phase 1 underground drilling programme was successfully completed in October 2020, with seven drill holes completed for a total of 559 metres. All seven drillholes intersected quartz veining, the known geological setting of all historic gold production at the Clogau-St David's Gold Mine.  Alba believes the drilling to have intersected a 550-metre westerly extension to the Main Lode, the source of most historic production at the Clogau-St David's Gold Mine. A Phase 2 underground drilling programme commenced in May 2021 .

 

(b) Surface Drilling

A Phase 1 surface drilling programme was successfully completed, targeting a zone below the Llechfraith mine area.  A total of ten holes were drilled from the same location, as a result of which we were able to project the newly identified vein system as having a strike extent of up to 52 metres, as well as extending 122 metres below the deepest previously worked zone at the Llechfraith mine area.  Assay results confirmed gold mineralisation across several individual zones up to one metre thick, with individual values up to 4.25 g/t, reinforcing our view that the newly modelled zone, the Llechfraith Lode, is a key target for future development and production at Clogau-St David's. 

 

The second phase of the Company's surface drilling programme commenced in April 2021, targeting the westerly, 550-metre extension to the Clogau Main Lode, which was identified during the underground drilling last year (see above). 

 

(c) Pitting of Waste Rock Dump

In April 2021 we carried out evaluation pitting of the historic waste rock dump at Clogau-St David's.  The waste rock dump contains material derived from the internal development of the Mine during past periods of production.  The dump is estimated to cover about 30,000 square feet and to contain 20,000 tonnes of rock.  Several pits were dug, with around 15 tonnes of material extracted per pit.  The material was then screened and a sample of the finer material from each pit sent for gold assaying offsite. 

 

(d) Bulk Sampling

The Company purchased and installed new items of plant at the mine site, notably an impact crusher and gold concentrator.  The Company's dedicated pilot gold processing plant became fully operational in January 2021.  The first set of assay results on bulk sample concentrates produced at the Company's pilot processing plant at Clogau-St David's returned notable concentrate grades of 20.4 to 165.5 g/t from Jack Williams Lode and floor material from Tyn-Y-Cornel area.

 

(e) Llechfraith Dewatering

During the period we submitted an application for a bespoke water discharge permit to allow the lower workings in the Llechfraith Shaft to be dewatered so that we can then undertake underground drilling and bulk sampling directly from that key zone.

 

(f) Permitting

Our six-year exclusive exploration licence over the Dolgellau Gold Belt, including the Clogau-St David's Mine, was extended for a further four years, until February 2025.

 

1.2 GREENLAND PORTFOLIO

(Amitsoq Graphite, Thule Black Sands Ilmenite, Melville Bay Iron and Inglefield Multi-Element)

 

(a) Amitsoq Graphite

Graphite specialists ProGraphite of Germany undertook a test work programme which demonstrated that a >96% graphite concentrate can be produced from Amitsoq graphite and that purification test work confirms the suitability of Amitsoq graphite for Lithium-Ion Batteries ("LIBs"), with standard alkaline purification, in particular, achieving a carbon level of above 99.95%, the grade needed for the production of spherical graphite for LIBs. 

 

Alba also commissioned Dr John Arthur CGeol, FGS to prepare an Exploration Target for the Amitsoq Project.  Dr Arthur determined that the volume and grade ranges for:

 

(i) the Amitsoq Deposit Exploration Target are between 1.7 and 4.5 million tonnes (assuming a density of 2.63t/m3) with a grade range of between 24-36% Graphitic Carbon; and

 

(ii) the Kalaaq Deposit 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.

 

This translates into a tonnage estimate of between 408,000 and 1,620,000 tonnes for the Amitsoq deposit and between 920,000 and 2,030,000 tonnes for Kalaaq.

 

In accordance with the JORC Code (2012), the potential quantity and grade of this Exploration Target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

 

(b)  Drill Planning

Alba spent much of the period under review designing and planning for two significant drill programmes to be undertaken at Amitsoq and Thule Black Sands ("TBS") over the summer of 2021.  At Amitsoq, drilling was aimed at defining a maiden JORC Resource for the project.  At TBS, meanwhile, drilling was aimed at significantly increasing our JORC Resources as well as moving some of our existing Inferred Resources into the Indicated category.

 

 

1.3 IRISH BASE METALS

 

The mineral exploration licence for Alba's 100% owned Limerick Base Metals Project, PL 3824, was renewed until 26 May 2022. 

 

A prospectivity review of the licence area identified the Coonagh Castle Fault as one of main faults transecting the Limerick Basin and concluded that being able to determine the trace of the fault to within tens of metres on surface is crucial to the success of future drilling. 

 

Subsequent interpretation of Tellus and satellite (Sentinel) imagery for the Alba licence area has identified three principal exploration target areas within PL 3824, each exhibiting a number of the structural and geological features found in Zinc-Lead deposits in the Irish Zinc Ore Field. 

 

2. CORPORATE

 

In May 2021 we announced that the Alba Board had determined that the best way to unlock real value in our Greenland assets was to divest them all into a separate vehicle which, subject to regulatory approval, will be admitted to trading on AIM.  That new listed vehicle, GreenRoc Mining Plc, would acquire Alba's Greenland Projects for shares and simultaneously undertake an IPO fundraising to secure the necessary working capital to fast-track their development.  A further announcement on this will be made shortly.   

 

In December 2020, we strengthened our Board through the appointment of Elizabeth Henson and Lars Brünner as Non-Executive Directors.  Elizabeth was, from 2007-2019, a senior international tax partner for PricewaterhouseCoopers LLP (PwC), based in London.  As for Lars, from 2014-2020 he was the Arctic Mining and Environment, Business Development Leader for Golder Associates A/S, a leading international mining and environmental consultancy firm. 

 

3. RESULTS

 

The Group made a loss attributable to equity holders of the parent for the period, after taxation, of £567,828 (2020: £303,788). Much of the increase in loss from the comparative period was due to costs incurred in undertaking the spin-out of the Group's Greenland asset portfolio.

 

At the end of the reporting period, the Group's cash was £1,619,649 with expenditure on exploration projects and on administrative expenses during the period compensated by funds received from the £1.2 million share placing at the end of the last financial year. This was shown in the year-end balance sheet as a significant debtor and subsequently paid during the reporting period.

 

Intangible assets increased by just under £1 million from the comparative interim period last year. This number excludes spend in advance of the planned field programmes in Greenland, which is held as a prepayment within debtors.

 

The basic and diluted loss per share was 0.009p (2020: 0.008p). 

4. OUTLOOK

 

Alba remains in a strong position to generate real and sustained growth across the Company's portfolio of assets and investments.

 

On behalf of the entire Board, I would like to take this opportunity to thank our shareholders for all their support.

 

 

George Frangeskides

31 August 2021

Executive Chairman

 

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the Company's ability to execute and implement future plans, and the occurrence of unexpected events. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.

 

For further information, please contact:

 

Alba Mineral Resources plc

George Frangeskides, Executive Chairman

 

+44 20 3950 0725

 

Cairn Financial Advisers LLP (Nomad)

James Caithie/Liam Murray

 

+44 20 7213 0880

 

ETX Capital (Broker)

Thomas Smith

+44 20 7392 1494

 

Alba's Project and Investment Portfolio

Project (commodity)

Location

Ownership

Mining Projects

Amitsoq (graphite)

Greenland

100%

Clogau (gold)

Wales

90%

Gwynfynydd (gold)

Wales

100%

Inglefield (copper, cobalt, gold)

Greenland

100%

Limerick (zinc-lead)

Ireland

100%

Melville Bay (iron ore)

Greenland

100%

TBS (ilmenite)

Greenland

100%

Oil & Gas Investments

Horse Hill (oil)

England

11.765%

 

 

 

 

UNAUDITED CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 31 MAY 2020

 

 

 

 

Unaudited

6 months ended 31 May 2020

Unaudited

6 months ended 31 May 2020

Audited Year ended 30 Nov 2020

 

 

 

 

 

Revenue

 

-

-

-

Cost of sales

 

-

-

-

Gross loss

 

 

 

-

Administrative expenses

 

(371,566)

(338,463)

(543,942)

Other income

 

-

34,542

-

Transaction-related professional fees

 

(196,262)

-

-

 

 

 

 

 

Operating (loss)/profit

 

(567,828)

(303,921)

(543,942)

 

 

 

 

 

Revaluation of investment

 

-

-

(1,430,000)

Finance costs

 

-

-

(105,595)

(Loss)/profit before tax

 

(567,828)

(303,921)

(2,079,537)

 

 

 

 

 

Taxation

 

-

-

-

(Loss)/profit for the year

 

(567,828)

(303,921)

(2,079,537)

 

 

 

 

 

 

Attributable to:

 

 

 

 

Equity holders of the parent

 

(567,298)

(303,788)

(2,078,897)

Non-controlling interests

 

(530)

(133)

(640)

 

 

(567,828)

(303,921)

(2,079,537)

 

 

 

 

 

Loss per ordinary share

 

 

 

 

Basic and diluted

 

(0.009) pence

(0.008) pence

(0.047) pence

 

 

 

 

 

 

   

 

 

 

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 MAY 2021

 

 

 

 

Unaudited

6 months ended 31 May 2021

Unaudited

6 months ended 31 May 2020

Audited Year ended 30 Nov 2020

 

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

 

140,026

85,000

111,038

Intangible fixed assets

 

4,105,810

3,107,797

3,526,317

Investments - Horse Hill Developments

 

4,000,000

5,430,000

4,000,000

Investments -other

 

-

11,125

-

Total non-current assets

 

8,245,836

8,633,922

7,637,355

 

 

 

 

 

Current assets

 

 

 

 

Trade and other receivables

 

269,624

65,397

1,196,006

Cash and cash equivalents

 

1,619,649

105,470

1,512,031

Total current assets

 

1,889,273

170,867

2,708,037

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

(475,423)

(406,900)

(257,047)

Financial liabilities

 

(41,134)

(157,134)

(41,134)

Total current liabilities

 

(516,557)

(564,034)

(298,181)

 

 

 

 

 

Net current assets / (liabilities)

 

1,372,716

(393,167)

2,409,856

 

 

 

 

 

Net assets

 

9,618,552

8,240,755

10,047,211

 

 

 

 

 

Capital and reserves

 

 

 

 

Called up share capital

 

4,986,931

4,770,233

4,983,956

Share premium account

 

9,444,472

7,093,305

9,360,248

Warrant reserve

 

1,384,993

739,303

1,286,785

Reserve for warrants to be issued

 

-

-

416,044

Retained losses

 

(6,350,628)

(4,577,582)

(6,153,136)

Foreign currency reserve

 

168,612

230,287

168,612

Equity attributable to equity holders of the parent

 

9,634,380

8,255,546

10,062,509

Non-controlling interests

 

(15,828)

(14,791)

(15,298)

 

Total equity

 

 

9,618,552

 

 

8,240,755

10,047,211

 

 

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 31 MAY 2021

 

 

 

Unaudited

6 months ended 31 May 2021

Unaudited

6 months ended 31 May 2020

Audited Year ended 30 Nov 2020

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

Operating loss

 

(567,828)

(303,921)

(543,942)

Consulting fees settled in shares

-

42,174

42,174

Share based payment charge

51,968

54,482

16,303

Change in fair value of other investments

 

-

-

11,125

Foreign exchange revaluation adjustment

 

-

267

(61,406)

Increase / (decrease) in creditors

 

270,512

(45,509)

(89,394)

(Increase)/ decrease in debtors

 

(225,548)

32,190

13,453

Net cash used in operating activities

 

(470,896)

(258,496)

(564,108)

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Payments for deferred exploration expenditure

 

(631,627)

(57,367)

(482,777)

Payments for tangible fixed assets

 

(5,059)

-

(26,038)

Net cash used in investing activities

 

(636,686)

(57,367)

(508,815)

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Proceeds from issue of shares and warrants

 

1,287,200

155,000

2,422,899

Cost of issue

 

(72,000)

(46,126)

(105,000)

Proceeds from short term borrowings

 

-

101,126

-

Proceeds from convertible loan notes

 

-

-

192,000

Financing costs

 

-

-

(37,200)

Repayment of short term borrowings plus financing costs

 

-

-

(99,078)

Net cash generated from financing activities

 

1,215,200

210,000

2,373,621

 

 

 

 

 

Net increase in cash and cash equivalents

 

107,618

(105,863)

1,300,698

Cash and cash equivalents at beginning of period

 

1,512,031

211,333

211,333

Cash and cash equivalents at end of period

 

1,619,649

105,470

1,512,031

 

 

 

 

 

 

 

 

 

NOTES TO THE HALF-YEARLY FINANCIAL INFORMATION

 

1.  Basis of preparation

 

The Group consolidates the financial statements of the Company and its subsidiary undertakings.

 

The financial information has been prepared under the historical cost convention in accordance with International Financial Reporting Standards ("IFRS"), International Accountant Standards ("IAS") and IFRS Interpretations Committee ("IFRIC") interpretations as adopted by the European Union. The financial information set out in this half-yearly report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The same accounting policies, presentation and methods of computation are followed in this interim condensed consolidated report as were applied in the Group's annual financial statements for the year ended 30 November 2020. The auditor's report on those financial statements was unqualified and did not contain any statements under section 498(2) or section 498(3) of the Companies Act 2006.

 

2.  Taxation

No charge for corporation tax for the period has been made due to the expected tax losses available.

 

3.  Loss per share

Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders of £567,828 (May 2020: loss of £303,788; November 2020: loss of £2,078,897) by the weighted average number of shares of 6,209,415,290 (May 2020: 3,922,836,878; November 2020: 4,421,614,727) in issue during the period. The diluted loss per share calculation is identical to that used for basic loss per share as the exercise of warrants would have the effect of reducing the loss per ordinary share and therefore is not dilutive under the terms of Financial Reporting Standard 22 "Earnings Per Share".

 

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