TIDMALBA
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
km(2) 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 +44 20 3696 4616
Cairn Financial Advisers LLP
Avi Robinson / James Caithie +44 20 7148 7900
Dowgate Capital Stockbrokers
Limited
Jason Robertson / Neil Badger +44 1293 517744
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.
END
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