GCIAlba Mineral Resources one step closer to production at Clogau
( ) updated markets this morning on its 100%-owned Clogau-St David's Gold Project in Wales, UK. Alba confirmed the submission of permit applications to dewater the Llechfraith Shaft and associated workings.
Clogau-St David's Gold Project
The Clogau-St David's Gold Project is situated within the Dolgellau Gold Field in north Wales and has a total license area of 106.94 km2. Within the project's mine, Alba has identified a number of gold targets through extensive exploratory drilling in 2020-21.
Alba's primary target within the Clogau Gold mine is the projected Llechfraith Shaft lode extension in the Lower Llechfraith workings. The target was identified through Alba's surface drilling campaigns in 2020 and 2021, by which the company was able to confirm lode continuity up to ~122 m below the existing Lower Llechfraith workings. In order to gain access to that target, Alba must dewater the flooded Llechfraith Shaft.
Figure 1: Llechfraith 3D geological model, integrating all surface drilling programmes completed by Alba to date, showing the projected Llechfraith Shaft lode extension some 122m below the flooded workings.
Figure 2: Cross-section of Lower Llechfraith area showing flooded Llechfraith Shaft ("Main Shaft") and its associated workings.
Permit to dewater Llechfraith Shaft
Following refusal by regulator Natural Resources Wales (NRW) in November 2021 to grant Alba's application to dewater the Llechfraith Shaft, the company submitted additional data to NRW in March 2022. Following receipt of further feedback, Alba implemented an extension to its programme of ecological and species surveys in order to expand its ecological dataset generated over the past 3-4 years.
Following completion and analysis of those surveys and integrating them into its overall dataset, Alba reported today that it has submitted to NRW an updated version of its "Report to Inform a Habitat Regulations Assessment" along with renewed applications for a water discharge permit and a European Protected Species licence in respect to the proposed dewatering.
Alba also said it recently hosted a site visit at Clogau for senior NRW personnel. Further material updates regarding the permitting process will be provided "as and when they become available."
View from Vox
Today's announcement brings Alba one step closer to production at Clogau. In addition to the aforementioned main Clogau Gold mine, the company has identified a large number of gold targets and former gold workings across the project's 106.94km2 license area. This includes the Waste Tip where Alba's exploratory campaign revealed average assay grades of 3.5 g/t, with gold concentrates produced at the on-site pilot plant at an average grade of 502 g/t. Alba said this indicated real potential for the Waste Tip to be separately mined for gold.
Alba also announced in August the acquisition of the remaining 10% interest in the Clogau-St David's Gold Project, including 75% of a net smelter return royalty from the vendor. The company now owns 100% of its Welsh gold projects, which represent significant future value inflection points for investors. Today's news alone drove Alba shares up 4% in early trading.
Separately, Alba's 54%-owned GreenRoc Mining recently announced significant new discoveries at its Amitsoq graphite project in Greenland, which is one of the highest-grade graphite deposits in the world. The new areas of interest, mostly located in the project's recently granted MEL 22-03 exploration license, showed high-grade deposits well in excess of 20% C(g).
News will continue to come out of Amitsoq as GreenRoc awaits assay results from its Phase 2 drilling program, followed by an expected higher resource for the project. The latter should arrive in c. 2 months. The March 2022 maiden JORC Resource for Amitsoq showed 8.3m tonnes at an average grade of 19.75% C(g). Based on last month's Phase 2 results, and recent sampling results, a significant upgrade to that resource tonnage is expected.
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