TIDMALBA
RNS Number : 6678M
Alba Mineral Resources PLC
01 August 2017
1 August 2017
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Alba Mineral Resources plc
("Alba" or the "Company")
Alba Awarded Exclusive Exploration Licence
in Thule Black Sand Province, Greenland
Alba Mineral Resources plc (AIM: ALBA) is pleased to announce
that it has been granted an exclusive mineral exploration licence
over a significant proportion of the coastline in the Thule black
sand province in north-west Greenland. The licence area is
prospective for heavy mineral sands, especially ilmenite.
HIGHLIGHTS
-- Alba has been granted an exclusive mineral exploration
licence covering 384 km(2) of prospective coastline in the Thule
province of north-west Greenland.
-- Black heavy mineral sands have been recorded in the region
for many decades. The sands are enriched with ilmenite and/or
magnetite.
-- The grade of the active beaches in the region is high - up to
60% - with a historic average of about 43% TiO(2) . Raised beaches
have a larger tonnage potential but lower titanium values - up to
23% TiO(2) with an average around 12%.
-- According to the Geological Survey of Denmark and Greenland
("GEUS"), "the beaches around the former settlement Moriusaq and
along the adjacent south-east trending coastline are the most
promising black sand occurrences from an economic point of view".
The most economically promising heavy mineral sands occur on active
and raised beaches of the Steensby Land ilmenite showing.
-- Alba has secured a 104 km stretch of this coast (including
inlet areas) being approximately 70 per cent of the total length of
this prospective coastline.
-- Bluejay Mining Plc (AIM: JAY) ("Bluejay"), which owns 100% of
the neighbouring Pittufik ilmenite project (just 9 km from Alba's
licence area and on the same south-east trending coastline), has
announced an Inferred Resource of 23.6Mt at 8.8% ilmenite (in
situ), including a high-grade zone equal to 7.9Mt at 14.2% ilmenite
(in situ) at Moriusaq which is the focus of feasibility and
production studies.
-- GEUS has recently estimated that 10 billion tonnes of
ilmenite exist in the original rock within the entire region, with
a further 7 billion tonnes of ilmenite present in the form of
placer ilmenite. While non-JORC compliant, this highlights the
potential of the province to host economic detrital ilmenite on
Alba's licence.
-- Alba has secured 100 per cent ownership of this project at no
cost to shareholders other than modest due diligence review costs
and the fee for licence grant.
-- Alba is in the process of settling an exploration programme
for this year with a view to confirming grade and extent of
mineralization within the Alba licence area. Exploration will
primarily involve surface sampling and trenching and use of ground
penetrating radar, together with relatively inexpensive shallow
augur drilling of the beach zones.
George Frangeskides, Alba's Executive Chairman, commented:
"We are delighted to have secured an extensive foothold within
this significant emerging global ilmenite province. We are very
grateful for the support shown by the Mineral Licence and Safety
Authority and the Government of Greenland in awarding this licence
to Alba, which we regard as an endorsement of the work we have
carried out to date at our other principal exploration project, the
high grade Amitsoq graphite project in southern Greenland."
"Alba's application for this licence area results from a
thorough due diligence review of available exploration ground in
Greenland which we carried out in conjunction with our technical
team. Alba's management is always on the search for significant new
project opportunities as we strive to create value for
shareholders, and we believe we have unearthed significant
potential with this Project."
"Ilmenite is the primary source of titanium dioxide, which is
used as pigment in several industries including plastic, paints,
coatings and paper, among others. Increasing demand for titanium
dioxide is among the major factors driving demand for
ilmenite."
"We believe that securing this new, 100 per cent owned project
at a negligible entry cost, is a potentially valuable addition to
Alba's project portfolio which now consists of significant assets
in both the mineral and oil and gas sectors. We look forward to
demonstrating that value to shareholders in the weeks and months
ahead."
Project Location
Alba's new heavy mineral sands project (the "Black Sands
Project" or "Project") is situated on the Steensby Land peninsular
in the north-west of Greenland, approximately 80 km south of the
regional settlement of Qaanaaq. The location is well placed for
infrastructure, being close to a deep-water port and international
airport at Thule Air Base operated by the United States Air Force
to the south-east, as well as Qaanaaq domestic airport to the
north. Both airports have regular flights from several airlines,
including Air Greenland.
Thule Black Sand Province
The Thule black sand province in north-west Greenland consists
of several hundred kilometres of coastline containing ilmenite- and
magnetite-rich sands. According to GEUS, elevated ilmenite
concentrations - up to 60 wt% (weight percentage) ilmenite with an
average of 37 wt% - are recorded on both active and raised beaches.
The main source of the ilmenite sands, per GEUS, is a regional
Neoproterozoic basaltic sill and dyke complex that intrudes the
Mesoproterozoic basement. The sills have unusually high titanium
content; up to 5.25 wt% in whole-rock analysis. Per GEUS, earlier
commercial studies on the black sand deposits have concluded that a
high titanium dioxide ("TiO(2) ") content slag ilmenite concentrate
could be produced because the level of other oxides is lower than
most ilmenite smelted (GEUS, Thule Black Sand Province and Regional
Geology, 2015/61).
Black heavy mineral sands have been recorded in the region for
some decades. The sands are enriched in ilmenite and/or magnetite,
derived from Neoproterozoic titanium-rich dolerite sills and dykes
in the immediate hinterland of the beaches.
According to historic reports, the thickest stratigraphic
section of the sills is in the Moriusaq half-graben where in
southern Steensby Land the clastic strata hosts about 15 master
sills that make up between 30 and 40% of the section; this is also
referred to as the Steensby Land sill complex. The current
mineralization sought by Alba is placer in nature, and is present
mainly in raised beaches (up to 40 m above sea level) and active
beach environments.
The deposits in the region are of two principal types:
- "Raised" and "Active" Beaches: these contain ilmenite
accumulations of unknown depths. The "active" beaches are those
areas seaward of the frontal dunes, including the beach, tidal
zones and surf zones. The "raised" beaches mean those areas of
frontal dunes set back from the beach. Alba's Black Sands Project
consists of approximately 104 km of total coastline, including both
the outer coast and inlet areas. The largest width of raised
beaches within Steensby Land is up to 3 km, around Booth Sund. This
is within Alba's licence area.
- "Off-shore" beaches: this refers to the areas seaward of the
active beaches, in the shallow marine environment in up to
approximately 20 metres of water.
According to historic reports, the grade of the active beaches
in the Steensby Land is high - up to 60% - with a historic average
of about 43% TiO(2) . Raised beaches have a larger tonnage
potential but lower titanium values - up to 23% TiO(2) with an
average around 12%. These historic sampling results were taken from
areas outside of the Company's licence area, albeit on the same
geological trend.
In a 2017 regional study by GEUS, covering the entire Thule
black sand province, GEUS estimated that 10 billion tonnes of
ilmenite exist in the original rock with a further 7 billion tonnes
present in the form of placer ilmenite within the project region
(covering an area of some 300 km x 150 km). This potential tonnage
of ilmenite is non-JORC compliant, but does highlight the potential
of the province to host economic detrital ilmenite on Alba's
licence. Alba has secured the great majority of the most
prospective areas of known raised and active beach deposits
identified in historic reports and which were not already under
licence to Bluejay Mining plc.
Note: a "placer" deposit means an accumulation of minerals
formed by gravity separation during sedimentary processes, in this
case natural erosion caused by the sea. It is this placer ilmenite
- located within the active, raised and off-shore beaches, which
will be Alba's primary target for exploration and development.
Project Plans
While this heavy mineral sands project represents a new venture
for Alba, the Company benefits from a large volume of historic work
and studies that have been undertaken in the Thule region in
respect of the potential for the exploitation of its mineral
sands.
Most recently, the Company is aware of the significant progress
made by Bluejay Mining Plc (AIM: JAY) at its Pituffik Project, only
9 km from Alba's Black Sands Project and on the same south-east
trending coastline which has been identified by GEUS as the most
highly prospective area in the entire region. Bluejay has defined
an initial JORC resource, has recently announced (per its RNS of 10
July 2017) that Pituffik is the highest graded mineral sand
ilmenite project globally and is pushing forward with its plans for
the development of the deposit. This gives the Company huge
encouragement as Alba seeks to progress work on its neighbouring
project area. The prospective Steensby Land coastline is now
dominated by just two mining companies.
The early objectives of Alba's work at the Project will be
likely to involve the completion of the following field work
activities, with the main focus initially being on the active
beaches:
- Contour mapping using satellite images.
- Ground penetrating radar ("GPR") to find the highest accumulations of black sand.
- Ground magnetic survey to identify areas where the sand has been concentrated.
- Sampling and assaying in order to confirm grade.
- Trenching at the best targets in order to confirm the results of the GPR and magnetic study.
- Auger drilling or push drilling to prove the continuity of
thickness and grade and confirm an initial JORC resource.
- Testing for ilmenite-bearing sediments within the shallow, off-shore beaches.
In Alba's view, this work can be carried out relatively
inexpensively when compared to traditional hard rock exploration
and drilling.
We intend to submit a work programme to the Mineral Licensing
and Safety Authority (MLSA) in Greenland shortly and to undertake
much of this work in the forthcoming field season, with the
objective that by the close of the present field season we will
have significantly progressed the Company's understanding of the
grade and extent of the mineralization at the Project.
Ilmenite and the Titanium Dioxide Market
Ilmenite is the primary source of titanium dioxide, TiO(2) .
Titanium dioxide is mined as ilmenite, rutile or, in lesser
quantities, leucoxene. It is a dark coloured mineral which, with
processing, becomes white and opaque. It is primarily used as a
whitening pigment in paints, plastics and paper. Other uses include
the manufacture of titanium metal.
Titanium dioxide feedstocks are graded by their titanium dioxide
content. Feedstocks are either sold as raw minerals (rutile and
chloride or sulphate ilmenite) or as processed or upgraded
feedstocks, whereby ilmenite is processed to increase its titanium
dioxide content. Upgraded feedstocks are synthetic rutile, chloride
and sulphate slag and upgraded slag.
Titanium dioxide feedstocks are used predominately for the
manufacture of pigment due to its opacity, UV resistance and
non-toxic properties. This pigment is in turn used in paints, paper
and plastics. Use in pigment accounts for approximately 80 to 90
per cent of total global demand for titanium feedstocks. Titanium
metal and welding flux cord wire jointly account for the remaining
10 to 20 per cent of demand. Historically, demand for titanium
feedstock has grown broadly in line with global GDP growth (source:
Iluka Resources Ltd).
According to Lucintel, the global titanium dioxide market is
expected to reach an estimated $18.2 billion by 2021 and is
forecast to grow at a compound annual growth rate (CAGR) of 3.4%
from 2016 to 2021. The major growth drivers for this market are
growing demand for titanium dioxide in end use industries like
paint, coatings and plastics. The Asia Pacific region is expected
to remain the largest market due to growth of those end use
industries, economic expansion in India and China and growing
consumption of paints and coatings particularly in the automotive
and construction industry (source: Lucintel, January 2017).
Licence Details
Exclusive mineral exploration licence 2017/29 has been granted
to Alba's wholly-owned subsidiary, White Eagle Resources Limited.
The licence covers all mineral resources except hydrocarbons,
radioactive elements and hydro-power. The Company's focus will be
on exploration for heavy mineral sands, principally ilmenite. The
licence is granted for a period of five years, and renewal
thereafter for a further period of five years is subject to
fulfilment of licence conditions including minimum expenditure
obligations.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Alba Mineral Resources plc
George Frangeskides (Executive Chairman) Tel: +44 20 7264 4366
Cairn Financial Advisers LLP (Nomad)
James Caithie/Liam Murray Tel: +44 20 7213 0880
Dowgate Capital Stockbrokers Ltd (Broker)
Jason Robertson / Neil Badger Tel: +44 1293 517744
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 fifteen years' 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.
Alba's Project Portfolio
Oil & Gas
Horse Hill (Oil & Gas, UK): 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.
Brockham (Oil & Gas, UK): Alba has a direct 5 per cent
interest in Production Licence 235, which comprises the previously
producing onshore Brockham Oil Field.
Mining
Amitsoq (Graphite, Greenland): 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.
Black Sands (Ilmenite, Greenland): Alba owns 100 per cent of
mineral exploration licence 2017/29 in the Thule region, North-West
Greenland.
Limerick (Base Metals, Ireland): Alba has 100 per cent of the
Limerick base metal project in the Republic of Ireland.
El Mreiti (Uranium, Mauritania): Alba has applied for the
reissue of a uranium permit in northern Mauritania, centred on
known uranium-bearing showings.
Alba continues actively to review 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.
Web: www.albamineralresources.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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