TIDMALBA
RNS Number : 2601C
Alba Mineral Resources PLC
12 April 2017
12 April 2017
Alba Mineral Resources plc
("Alba" or the "Company")
Stage 1 Metallurgical Test Results at Amitsoq
Confirm High Grade Graphite
Further to the announcement of 8 September 2016, Alba Mineral
Resources plc (AIM: ALBA) has now completed the preliminary
evaluation of the metallurgical testing on the Amitsoq graphite
project (the "Project") near Nanortalik in southern Greenland. The
initial results are highly encouraging and provide confidence with
regard to the Company's objective of re-opening the graphite mine
at Amitsoq.
Highlights
-- As advised on 9 September 2016, 179 Kgs of sample were
provided to the SGS laboratory facility in Cornwall for
metallurgical testing.
-- Crushing, grinding, attrition and floatation test work
indicates the ore can be processed by a relatively low cost
processing route to produce a range of high grade products.
-- Head grade of +25% graphite confirms Amitsoq ore to be
amongst the highest grade of any graphite project in the world.
-- Simple processing was able to achieve +99% recovery of the
graphite from the gangue material, with the bulk of the flake
graphite recovered being in the +150u category (medium flake),
essential for supply to the lithium-ion battery market, and the
premium value +300u jumbo to super jumbo category.
-- Additional optimisation metallurgical testing will be
required to provide the detail that will guide the design of a
future processing facility in Greenland.
Additional photos showing the samples being collected and some
of the test work can be viewed on the Alba website image gallery at
www.albamineralresources.com.
Details of test work
The samples were crushed to 25mm and from the crushed samples
representative samples were taken for the test work and crushed
down to 2mm as the basic feedstock.
The average graphitic total carbon content of the sample used as
the primary feed to the test cells was 25.6% carbon. This total
graphitic carbon assay correlates well with the previous range of
assays of between 20.5% and 35.4%, as stated below (see "Previous
Work Undertaken at Amitsoq"). The test work shows head grades are
confirmed to be running at circa 25 per cent graphitic carbon. This
confirms, when compared to the reported grades of advanced graphite
projects, Amitsoq ore to be amongst the highest grade of any
graphite project in the world.
Preliminary test work has demonstrated that the graphitic carbon
readily floats to a relatively high grade rougher concentrate with
recoveries up to 98 per cent for the finer grind sizes. Rougher
recoveries vary from 72 per cent to 98 per cent at float feed sizes
from 2mm down to 150 microns.
Tabling (using a shaking table) of the flotation concentrates
shows that the graphitic carbon separates from the gangue material,
indicating that upgrading the rougher concentrates should be
relatively simple.
A staged float with intermediate regrinding to 500u, 300u, and
180u produced an overall recovery of +99 per cent.
Two floats were also carried out at an intermediate feed size of
1180u and 850u to assess the flake recovery at differing sizes. The
overall recovery at 1180u was 93.3 per cent with 24 per cent of the
graphite being in the +300u fraction and 44 per cent being in the
+150u fraction. The corresponding values for the 850u grind were 99
per cent recovery with 25 per cent in the +300u fraction and 49 per
cent in the +150u fraction. Confirmation that a significant
proportion of the flake graphite recovered is in the +150u category
(medium flake) and the premium value +300u jumbo to super jumbo
category is very important to the Amitsoq Project's future
economics, as medium flake graphite is essential for supply to the
lithium-ion battery market and jumbo to super jumbo flake graphite
attracts a premium price in the market.
The above results are very encouraging and the second phase of
test work will be focused upon maximising the economic return of
the primary grind, and to improve the detailed refining of the
concentrates to the various marketable grades.
In conjunction with the phase 2 test work, a product assessment
will be carried out to define the suite of graphite products that
Alba will be able to produce from the Amitsoq ore, with a view to
maximising the returns from production. The graphite market is
highly specialised, with each category of flake size having
different industrial applications and therefore attracting a range
of different end users and potential off-take partners. The
Company's management has just returned from the 6(th) Graphite
& Graphene Conference in Berlin, hosted by Industrial Minerals,
at which conference the Company held initial discussions with
graphite industry experts and end users. Alba intends to progress
those discussions and utilise the services of a firm of graphite
specialists to conduct and refine the metallurgical and product
optimisation work. This will inform our exploration and development
efforts for the year ahead.
Michael Nott, Alba's CEO, commented:
"The results from this phase 1 metallurgical test work are
impressive. The test work results confirm the very high grade
graphite content at Amitsoq (averaging 25%) and a good spread of
flake size in the key and high demand/value categories. We were
able to achieve +99 per cent recoveries using fairly simple and low
cost processing techniques, which bodes very well for the economics
of future production at Amitsoq."
"Additional metallurgical test work to optimise a processing
plant, which is a key element in proving up commercial viability,
will now be undertaken. This will also form part of an integrated,
fast-track approach to the project. We look forward now to the
furtherance of our fast-track development programme this year, with
our priorities being resource estimation drilling, initial
environmental assessment and process plant logistics and
construction design."
Previous Work Undertaken at Amitsoq
-- Test work carried out on hand/grab samples collected during a
field expedition in 2015 returned excellent results, showing
graphitic carbon contents varying from 20.5% to 35.4%, with an
overall mean graphitic carbon content of 28.7%, significantly
higher than the previously reported historic average grade of 20%
and higher than most reported advanced graphite projects
globally.
-- The results of a remote sensing study were highly
encouraging, highlighting several anomalies for a variety of
commodities. Numerous and continuous graphitic horizons were
suggested along strike and proximal to the Amitsoq graphite
mine.
-- Additional FeO anomalies are interpreted to be favourable
targets for platinum group metals, orogenic lode gold and intrusion
related copper-zinc mineralization.
-- Anomalies have been identified with geology similar to
economic gold mineralization at the nearby Nalunaq gold mine (circa
340,000 ounces of gold produced to date). These FeO anomalies are 5
km along strike from previous documented gold showings, and 18 km
to the southwest of the Nulunaq mine.
-- A bulk sampling exercise (August 2016) took 179 kilograms of
graphite ore sampled from a surface bed that had previously been
exploited when the Amitsoq mine was operational. The bed was found
to have a true thickness of 16.58 metres.
-- An airborne electro-magnetic survey completed in September
2016 confirmed numerous target anomalies including some 12.05 km of
total strike length. This work is still being assessed and
refined.
Alba's interest in Amitsoq
As announced on 20 February 2017, Alba regulatory approval from
the Greenlandic authorities, to acquire up to 100 per cent of the
Amitsoq licence has been obtained. Alba now owns 90% of the
Project, with an option to acquire the remaining 10% and move to
100 per cent ownership.
For further information please contact:
Alba Mineral Resources
plc
Michael Nott, CEO +44 20 7264 4366
Cairn Financial Advisers
LLP
James Caithie / Liam Murray +44 20 7213 0880
Dowgate Capital Stockbrokers
Limited
Jason Robertson / Neil
Badger +44 1293 517744
Competent Person's Declaration
Michael Nott, Alba's CEO, has over 45 years relevant experience
in the geological, mining, minerals, waste disposal, industrial
minerals, oil, drilling, mineral planning and quarrying industries
has approved the information in this announcement. He holds a BSc.
degree in Geology from Queen Mary, University of London, a MSc.
Degree in Mineral Production Management from the Royal School of
Mines, Imperial College, University of London, the Diploma of
Imperial College in Mineral Production Management and is a
Chartered Engineer. He is a Fellow of the Institute of Materials,
Minerals and Mining, a Fellow of the Minerals Engineering Society,
a Fellow of the Institute of Quarrying and an Associate of the
Royal School of Mines Association.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation
596/2014.
About Alba
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 is also earning
a 5% interest in Production Licence 235, which comprises the
producing onshore Brockham Oil Field.
Alba owns a 90 per cent interest in the Amitsoq Graphite Project
in Southern Greenland and has an option over the remaining 10 per
cent.
In addition, the Company has recently renewed its Limerick base
metal licence in the Republic of Ireland. The Company 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 numerous other
project opportunities which have value-enhancing potential for the
Company whether by bolt on or stand alone acquisition, farm in or
joint venture in a range of jurisdictions around the world.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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