GCIAlba Mineral Resources Delivers Further Development at Clogau-St David’s Gold Mine
(ALBA ) has updated its development plans at the Clogau-St David’s Gold Mine following reassessment of the main lode system highlighted by modelling of recent surface and underground drilling results.
Modelling of the Phase 2 Surface and Underground drilling results has resulted in a reassessment of the extension of the Main Lode system, including the identification of a historically overlooked Lode termed the New Branch Lode.
As a result, Alba’s technical team have updated the detailed design and costing of a series of potential development options at Clogau-St David’s in order to gain access to these new lodes.
These development plans cover both the Llechfraith Payshoot and the Main Lode System Extension, incorporating the Jack Williams Extension and the New Branch (see Fig 1), 7-10 and Grandfathers Lodes, which will enable the Company to directly access the resource potential of these new target zones.
Figure 1: Key development zones identified through Alba’s underground and surface drilling campaigns
[Source: Alba]
Alba’s COO and Senior Geologist, Mark Austin, commented: The fact that this New Branch Lode structure is only 22m horizontally to the north from the 7-10 Lode on the Llechfraith level, with the Jack Williams Lode only a further 23m away, means that with less than 50m of development – which is tiny when compared to the already several kilometres of existing underground development - we will be able to access never previously mined zones with these two Lode structures, which have contributed a significant amount of the past gold production at Clogau.”
Alba’s Executive Chairman, George Frangeskides, commented: “We wanted to provide a fuller update than usual in this release, as we know that shareholders are keen to learn in detail of the progress of works at Clogau. As Mark has highlighted above, we believe we are now in a strong position to move this project into the development phase, with no less than three significant new target zones identified within the existing envelope of the mine and, no less importantly, being target zones which should be accessible by putting in a relatively modest amount of new development.”
Dewatering Permits
Alba has also reported extensively on the dewatering permits first submitted to Natural Resources Wales (“NRW”) in January 2021 to dewater the flooded Llechfraith Shaft and discharge the treated water into the neighbouring stream.
Originally, Alba was informed that only a simple Discharge Permit was required. However, in late May 2021 NRW informed Alba that a Transfer (or Abstraction) Licence would also be required. In June 2021 NRW indicated to Alba that a decision would be made within a few weeks.
On 1 July 2021 NRW issued a formal notification (known as a Schedule 5 notification) seeking further information in relation to the proposed scheme.
More recently, NRW has informed Alba for the first time that it now intends to undertake a Habitat Regulations Assessment (“HRA”) and requested that Alba submit a detailed report to assist it in that assessment.
Since that date, Alba’s environmental and ecological team, led by Alba’s ecological consultants ENVSYS and Alba’s consulting geochemical engineer Dr Matthew Dey CEng MIMMM of Geochemical Engineering Solutions Ltd, UK, with support from Mr Alistair Black, Principal Hydrogeologist & Director, Groundwater Science Ltd, have been compiling a detailed report to inform the NRW’s HRA, with the overall objective of assisting NRW in its assessment of any potential impacts of the dewatering exercise on the integrity of the Special Areas of Conservation (“SACs”) situated closest to the mine.
Given the robustness of its dewatering proposals, the support of its highly experienced technical consultants and the confidence derived from the extensive supporting data compiled over the past 18 months or so, which has confirmed the relatively benign nature of the mine water, Alba is confident in the merits of its application and proposed scheme and remains hopeful of a positive outcome soon.
George added; “……the processing of our application for the permits to dewater the Llechfraith Shaft, one of the three development zones highlighted in this release, has taken considerably longer than we ever envisaged. It is understandable that the regulator should exercise all due care and caution when considering any application for the discharge of water into the watercourse.
However, in respect of the specifics of our dewatering proposal, as shareholders can read for themselves in this release, the thoroughness of the technical work completed by our highly experienced consultants, the robustness of the dewatering scheme they have devised and the extensive supporting data we have compiled over the past 18 months give us a great deal of confidence in the merits of our application. We therefore look forward to it proceeding to a determination soon.”
View from Vox
Progress at Clogau has been particularly encouraging with the Company bringing together some leading experts in their fields.
Whilst the delay on the dewatering permit is disappointing, investors should be reassured that the Company is following regulations to the letter and amassed significant assays and reports in the process.
The discovery, through extensive modelling following precise drilling, of new gold discoveries within the Dolgellau gold belt with pockets of high grade material is particularly exciting for investors.
Given its only 22m from existing mining, it is obviously very achievable to get to within current budgets.
New Branch Lode Discovery
Since the completion of Phase 2 Surface Drilling, the geological model of the Clogau-St David’s Mine has evolved to highlight additional structural features that had historically been overlooked.
Once Phase 2 collars had been accurately surveyed, this data was inputted into the model and it became apparent that the Lode structure intercepted in the Phase 2 surface holes was not in fact the same vein as was mined in the Jack Williams Stope.
Figure 2: 3D View of the three Lode structures identified to date that make up the Main Lode System extension, including the New Branch Lode.
It has therefore been determined that a new branch of the vein system exists between the Jack Williams and 7-10 Lodes and forms a key part of the Main Lode System Extension (see the red plane in Figure 2).
This new branch has been called the New Branch Lode. This is an exciting development as it adds further new development potential to the zones already identified in the Company’s drilling campaigns.
Figure 3: Section through the Clogau 3D Model, showing the modest distances involved in reaching the target structures from the existing Llechfraith Level using underground development.
[Source: Alba]
Further, the New Branch Lode structure is only ~22 m horizontally to the north from the 7-10 Lode on the Llechfraith level. The Jack Williams Lode is projected to be a further ~23 m away to the north, meaning that with less than 50 m of development Alba will be able to access virgin ground on these two Lode structures (see Figure 3). Developing from the Llechfraith Level would also enable a thicker portion of the New Branch Lode identified by the surface holes GMOW_JW002, JW008 and JW009 to be targeted.
New Development Zone on Cornel-2 Level
Further work has been completed to digitise historical mine plans, including a plan of the Cornel-2 Level, which sits ~12 m above the Tyn y Cornel (“TYC”) Level and the Jack Williams Stope. Historical plans show that previous operators of the mine believed they had encountered the 7-10 Lode on this level, around ~32 m to the south of the Jack Williams Lode. However, Alba’s 3D model shows that the 7-10 Lode was never reached, and that this development was actually on the New Branch Lode (see Figure 4).
Figure 4: 3D diagram showing the additional development and stoping (in blue) which has been added to the model.
[Source: Alba]
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