TIDMALBA
RNS Number : 7411X
Alba Mineral Resources PLC
31 August 2022
Alba Mineral Resources plc
("Alba" or the "Company")
HALF-YEARLY REPORT
The Board of Directors of Alba Mineral Resources plc (the
"Company" or "Alba") is pleased to report the Company's interim
results for the six months ended 31 May 2022. They incorporate the
results of its subsidiary companies Aurum Mineral Resources Limited
("AMR"), Mauritania Ventures Limited ("MVL"), Dragonfire Mining
Limited ("DML"), the Gold Mines of Wales group of companies
("GMOW"), GMOW (Gwynfynydd) Limited, GreenRoc Mining Plc, Obsidian
Mining Limited ("OML"), White Eagle Resources Limited ("WERL") and
White Fox Resources Limited ("WFRL") (together, the "Subsidiary
Companies", collectively with Alba, the "Group").
CHAIRMAN'S STATEMENT
I am pleased to present shareholders with a review of our
activities in the six months to 31 May 2022.
Strong progress has been made during this period. At the
Clogau-St David's Gold Project, the analytical work we carried out
on our drill core has given us further confidence in the potential
of our two primary targets, the Lower Llechfraith and the Main Lode
Extension, to host high-grade gold resources. Regarding the Lower
Llechfraith target, we recently announced that good progress has
been made in completing further ecological surveying and data
generation in support of our plan to dewater the Llechfraith Shaft
and that we expect to submit an updated technical report and
renewed permit applications to the regulator in the first half of
September.
Outside of the mine area at Clogau, the second phase of our
exploratory work at the historic waste tip was very successful. We
returned average assay grades of 3.5 g/t and the gold concentrates
that we produced at our on-site pilot plant had an average grade of
502 g/t, indicating that there is real potential for the waste tip
to be mined for gold as a standalone exercise to the rest of the
mine.
Great progress has also been made at GreenRoc Mining Plc, which
listed last year and in which we hold a majority interest. A maiden
JORC Resource was announced at GreenRoc's exceptionally high-grade
Amitsoq Island graphite deposit and, as I write, a follow-up
drilling campaign is well underway at Amitsoq, and with more
drilling still to be completed, already looks to have doubled the
footprint of the deposit.
1. REVIEW OF ACTIVITIES
1.1 WELSH GOLD
(Clogau-St David's, Gwynfynydd, Dolgellau Exploration
Project)
In December 2021, we announced that an analysis of the assays
from our Phase 1 & 2 underground and surface drill core and
additional in-mine rock samples had identified four distinct
geochemical groupings, with the most important grouping, the
auriferous vein ("AV") group, being directly comparable to the
basket of metals found in the bonanza-grade gold stage described in
historical ore mineralogy assessments for the Dolgellau Gold Field,
as well as being present in all key target structures identified to
date.
This detailed multi-element analysis of the core samples from
all our drilling at Clogau has provided further validation of the
key targets we have identified from that work. This includes our
two priority targets: the Lower Llechfraith, below the Llechfraith
Adit, where drilling has proven vein continuity up to 122 m below
existing workings; and the Main Lode System Extension, where
drilling has defined a previously unknown Lode (termed the New
Branch Lode) whilst also intercepting the 7-10 Lode and
Grandfathers Payshoot at up to 60 m below existing workings.
The fact that we have identified the same multi-element
signature in these areas as was found in the bonanza-grade gold
stage at Clogau gives us a great deal of confidence in the
prospects for these new zones to host high-grade gold deposits.
As shareholders will be aware, prior to the reporting period the
regulator, Natural Resources Wales ('NRW'), turned down our permit
application to dewater the Llechfraith Shaft situated below the
Llechfraith Adit level. The dewatering exercise is a necessary
first step in gaining access to the Lower Llechfraith area. During
the reporting period, Alba submitted additional supporting data and
analysis to NRW and, following the receipt of subsequent feedback
from the latter, the Company and its professional consultants have
extended the programme of ecological and species surveys to add to
the ecological dataset generated by the Company during the past 3-4
years.
Alba's ecological consultants are in the process of updating our
previously submitted Report to Inform a Habitat Regulations
Assessment. We intend to submit the revised Report and renewed
dewatering applications in the first half of September, and we
remain confident that we will ultimately be successful in our bid
to dewater the shaft.
Since 2021, we have been engaged in the exploration of the
historic Waste Tip at Clogau as a stand-alone project outside the
envelope of the mine. During the reporting period, a second phase
pitting and sampling exercise was completed at the Waste Tip,
focusing on the higher-grade zones identified from our previous
work. Following clearance from NRW, five pits were dug within an
area of 400m(2), with 60 kg samples of fines material from each pit
then being submitted for independent assaying.
The assay results returned gold grades of up to 11.35 g/t, with
whole-sample analysis averaging up to 3.50 g/t, in line with the
Phase 1 results. Further size fraction analysis has highlighted how
gold is concentrated in the finest material (<1 mm) extracted
from the Waste Tip.
Subsequent independent assays of the gold concentrates produced
from the processing of the fines material at our on-site pilot
plant returned gold concentrate grades of up to 1,000 g/t with an
average grade of 502 g/t. This average concentrate grade translates
to an average head grade of 1.7 g/t, significantly higher than the
average of 0.95 g/t achieved from the first phase sampling of the
same pits, indicating that the sampling exercise under-represented
the overall grade due to the nuggety effect of the ore.
The Company is now engaged in an economic assessment of the
Waste Tip and the formulation of a mining plan, which will lead to
a formal planning application to commercially produce gold from the
Waste Tip's estimated 4,000 tonnes of fines material.
In other developments outside of the main mine area, our
aeromagnetic survey contractor, UAVE Limited, has been engaged in
the process for obtaining permission to carry out an unmanned
aerial vehicle ("UAV")-borne geophysical survey to map the magnetic
properties of the subsurface below the key targets which we
identified in our extensive 2019 geochemical survey programme .
Being able to pinpoint the bedrock sources of these geochemical
anomalies will have significant implications for both regional
exploration and the identification of further near-mine resource
opportunities. However, the UK Civil Aviation Authority having
notified us that the next available slot to carry out the survey
would be in November 2022, when the weather window for completing
the flights is likely to be limited, it has been decided to defer
the survey till next spring.
1.2 GREENROC MINING PLC
(Amitsoq Graphite, Thule Black Sands Ilmenite, Melville Bay Iron
and Inglefield Multi-Element)
Alba holds a 54% majority interest in GreenRoc Mining Plc
("GreenRoc"). Because of this, Alba's consolidated financial
statements include GreenRoc and its subsidiaries.
GreenRoc was admitted to trading on AIM last September with the
objective of becoming a key supplier of critical, high-demand
minerals and has already made great strides towards this goal.
During the reporting period, GreenRoc made significant progress in
relation to its flagship projects, Amitsoq (graphite) and Thule
Black Sands ("TBS") (ilmenite), as summarised below.
At Amitsoq, a maiden JORC Resource was announced in March 2022
at the Amitsoq Island deposit of 8.3 million tonnes ("Mt") at an
average grade of 19.75% graphitic carbon ("Cg"), confirming Amitsoq
to be among the very highest-grade graphite deposits in the world.
Meanwhile, the Exploration Target for the Amitsoq Island deposit
has increased to 5-15Mt at a grade range of 18-22% Cg, and for the
separate Kalaaq deposit has increased to 6-10 Mt at a grade range
of 17-33% Cg.
A drilling programme is ongoing at the Amitsoq Island deposit
this summer, targeting a significant increase in the JORC Resource
there. As of 14 August 2022, nine holes had been completed for a
total of 1,360m, with all holes intersecting the targeted graphite
layers, thereby extending the deposit to the west by about 100m and
to the northwest by about 150m, essentially doubling the deposit
footprint and supporting the significant additional resource
potential in the project.
To date, 16 intersections of UGL and LGL greater than 3.0m each
have been drilled at Amitsoq this summer, with all holes having at
least one mineable graphite layer intersection greater than 5.25m.
Drilling to date gives strong confidence that a higher-tonnage,
higher-category Resource can be established in support of
feasibility studies.
As for TBS, following the 2021 drill programme there, a revision
to the current maiden JORC Resource of 19Mt at 8.9% in-situ
ilmenite is expected in the coming weeks. Bathymetric surveying is
being undertaken at TBS this summer to provide data for the
planning of port facilities.
Environmental and Social Impact Assessment consultants have been
engaged to commence work on the EIA and SIA studies necessary for
future exploitation licence applications, and this will be the
focus of work following the end of the summer field programmes.
Stefan Bernstein, a senior geologist with considerable
experience in the Greenland mining sector, was appointed CEO of
GreenRoc in May 2022.
Further details are set out in GreenRoc's interim results
announcement of 10 August 2022.
1.3 IRISH BASE METALS
Post period end, the mineral exploration licence for Alba's 100%
owned Limerick Base Metals Project, PL 3824, was renewed until 26
May 2024.
We have identified three principal exploration target areas for
follow-up drilling at Limerick. Applications for the necessary
drill permits have been submitted and we remain on track to
commence drilling before the end of this year.
1.4 HORSE HILL
On 18 February 2022, the Operator of the Horse Hill Oil Field,
in which Alba holds an 11.765% interest, announced that the Court
of Appeal had confirmed that the existing production licence had
been granted lawfully and that the field could remain in production
until the end of its commercial life. The Operator has since
announced that the claimant has been given a final legal avenue to
appeal to the Supreme Court, which if pursued would be expected to
be heard some time from Q2 2023 onwards.
On 5 May 2022, the Operator announced the grant of a full
Production Permit ("PP") from the Environment Agency, enabling
production and water re-injection operations, incineration of waste
gas, maintenance/workovers and the drilling of further development
wells under a single permit, an improvement from the umbrella of
testing permits previously in place.
Later that month, the Operator announced a one-year extension to
the Retention Area work programme, granting an additional year in
which to drill a second Horse Hill Kimmeridge well, with the
commencement of drilling to be prior to 30 September 2023.
2. CORPORATE
On 19 January 2022, the Company announced that the Chairman,
George Frangeskides, had purchased 10,221,909 ordinary shares in
the Company at an average price of 0.1475p per share, taking his
holding to 48 million shares or 0.75% of the Company's issued share
capital.
Post-period end (see the RNS of 23 August 2022), Alba announced
the acquisition of the remaining 10% minority interest in the
Clogau-St David's Gold Project, resulting in Alba moving to 100%
ownership of the Project. The Company now owns 100% of all of its
Welsh gold projects. As part of the acquisition, Alba also bought
back 3% of the net smelter return ("NSR") royalty held by the
minority party, leaving it with a 1% NSR royalty. The reduction in
the royalty is regarded as important for the future economics of
the Project. The t otal consideration payable by Alba is
GBP400,000, to be settled in Alba ordinary shares at a price per
share of 0.2p, a premium of 25% above the closing share price of
0.16p on 22 August 2022, plus 81,930,830 two-year share warrants
with an exercise price of 0.4p per share. The consideration shares
will be subject to a 12-month lock-up/orderly marketing
restriction.
3. RESULTS
The Group made a loss of GBP815,000 after tax (2021:
GBP568,000), reflecting increased costs due to there being a second
AIM-listed entity within the Group in the period under review, of
which the loss attributable to equity holders of the parent for the
period were GBP592,000 after taxation (2021: GBP567,000).
Administrative costs were lower for the period under review, but
certain transaction fees relating to the GreenRoc IPO had been
incurred.
At the end of the reporting period, the Group's cash was
GBP2,024,000. Net cash outflows were GBP1.9m, including GBP0.94m
expenditure on exploration projects and fixed assets in the six
months being reported.
Intangible assets increased by GBP3m from the comparative
interim period last year, reflecting the Group's investment in
exploration in Wales and in Greenland since 31 May 2021.
The basic and diluted loss per share was 0.009 pence (2021:
0.009 pence).
4. OUTLOOK
Alba remains in a strong position to generate real and sustained
growth across its portfolio of assets and investments and also
continues to assess opportunities to expand its portfolio value by
the acquisition of additional complementary assets.
On behalf of the entire Board, I would like to take this
opportunity to thank our shareholders for all their support.
George Frangeskides
31 August 2022
Executive Chairman
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
Forward Looking Statements
This announcement contains forward-looking statements relating
to expected or anticipated future events and anticipated results
that are forward-looking in nature and, as a result, are subject to
certain risks and uncertainties, such as general economic, market
and business conditions, competition for qualified staff, the
regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political
jurisdiction, uncertainties regarding the results of exploration,
uncertainties regarding the timing and granting of prospecting
rights, uncertainties regarding the Company's ability to execute
and implement future plans, and the occurrence of unexpected
events. Actual results achieved may vary from the information
provided herein as a result of numerous known and unknown risks and
uncertainties and other factors.
For further information, please visit
www.albamineralresources.com or contact:
Alba Mineral Resources plc
George Frangeskides, Executive Chairman +44 20 3950 0725
SPARK Advisory Partners Limited (Nomad)
Andrew Emmott +44 20 3368 3555
OvalX (Broker)
Thomas Smith +44 20 7392 1494
St Brides Partners (Financial PR)
Isabel de Salis / Catherine Leftley alba@stbridespartners.co.uk
Alba's Projects and Investments
Mining Projects Operated Location Ownership
by Alba
Clogau (gold) Wales 90%
----------- ----------
Dolgellau Gold Exploration
(gold) Wales 90-100%
----------- ----------
Gwynfynydd (gold) Wales 100%
----------- ----------
Limerick (zinc-lead) Ireland 100%
----------- ----------
Investments Held by Alba Location Ownership
----------- ----------
GreenRoc Mining Plc (mining) Greenland 54%
----------- ----------
Horse Hill (oil) England 11.765%
----------- ----------
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHSED 31 MAY 2022
Unaudited Unaudited Audited Year
6 months ended 6 months ended 30
31 May 2022 ended 31 Nov 2021
May 2021
GBP'000 GBP'000 GBP'000
Other income - - 23
Administrative expenses (814) (372) (1,067)
Transaction-related professional - (196) -
fees
Operating (loss)/profit (814) (568) (1,044)
Revaluation of financial
liability - (180)
Revaluation of investment - - (615)
Finance costs (1) - (1)
---------------- -------------- --------------
(Loss)/profit before tax (815) (568) (1,840)
Taxation - - -
---------------------------------- ---------------- -------------- --------------
(Loss)/profit for the
year (815) (568) (1,840)
----------------------------------- ---------------- -------------- --------------
Attributable to:
Equity holders of the
parent (592) (567) (1,699)
Non-controlling interests (223) (1) (141)
---------------- -------------- --------------
(815) (568) (1,840)
---------------- -------------- --------------
Loss per ordinary share
Basic and diluted (0.009) pence (0.009) pence (0.027) pence
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2022
Unaudited Unaudited Audited Year
6 months ended 6 months ended ended 30
31 May 2022 31 May 2021 Nov 2021
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 153 140 137
Intangible fixed assets 7,030 4,106 6,110
Investments - Horse Hill
Developments 3,385 4,000 3,385
Investments -other - - -
Total non-current assets 10,568 8,246 9,632
---------------- ---------------- -------------
Current assets
Trade and other receivables 211 269 178
Cash and cash equivalents 2,024 1,620 3,948
---------------- ---------------- -------------
Total current assets 2,235 1,889 4,126
---------------- ---------------- -------------
Current liabilities
Trade and other payables (383) (475) (671)
Financial liabilities (221) (41) (221)
---------------- ---------------- -------------
Total current liabilities (604) (516) (892)
---------------- ---------------- -------------
Net current assets / (liabilities) 1,631 1,373 3,234
---------------- ---------------- -------------
Net assets 12,199 9,619 12,866
------------------------------------- ---------------- ---------------- -------------
Capital and reserves
Called up share capital 5,005 4,987 5,005
Share premium account 9,877 9,444 9,877
Warrant reserve 1,444 1,385 1,425
Dilution of ownership reserve 991 - 991
Other reserve 115 - 89
Retained losses (7,958) (6,351) (7,421)
Foreign currency reserve 169 169 168
------------------------------------- ---------------- ---------------- -------------
Equity attributable to
equity holders of the parent 9,643 9,634 10,134
Non-controlling interests 2,556 (15) 2,732
------------------------------------- ---------------- ---------------- -------------
Total equity 12,199 9,619 12,866
------------------------------------- ---------------- ---------------- -------------
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 MAY 2022
Unaudited Unaudited Audited
6 months 6 months Year ended
ended 31 ended 31 30 Nov 2021
May 2022 May 2021
Cash flows from operating
activities
Operating loss (814) (568) (1,044)
Loss on disposal - - 9
Consulting fees settled in shares - - 32
Share based payment charge 147 52 237
Depreciation 3 - 5
Foreign exchange revaluation
adjustment 1 - (1)
Increase / (decrease) in creditors (288) 271 386
(Increase)/ decrease in debtors (33) (225) (110)
--------- ---------- -------------
Net cash used in operating
activities (984) (470) (486)
--------- ---------- -------------
Cash flows from investing
activities
Payments for deferred exploration
expenditure (919) (632) (2,544)
Payments for tangible fixed
assets (20) (5) (31)
--------- ---------- -------------
Net cash used in investing
activities (939) (637) (2,575)
--------- ---------- -------------
Cash flows from financing
activities
Proceeds from issue of shares
and warrants - 1,287 1,295
Cost of issue - (72) (72)
Proceeds from issue of shares
and warrants - Greenroc - - 5,075
IPO transaction costs - - (800)
Finance expense (1) - (1)
Net cash generated from financing
activities (1) 1,215 5,497
--------- ---------- -------------
Net increase in cash and cash
equivalents (1,924) 108 2,436
Cash and cash equivalents
at beginning of period 3,948 1,512 1,512
--------- ---------- -------------
Cash and cash equivalents
at end of period 2,024 1,620 3,948
--------- ---------- -------------
NOTES TO THE HALF-YEARLY FINANCIAL INFORMATION
1. Basis of preparation
The Group consolidates the financial statements of the Company
and its subsidiary undertakings.
The financial information has been prepared under the historical
cost convention in accordance with International Financial
Reporting Standards ("IFRS"), International Accountant Standards
("IAS") and IFRS Interpretations Committee ("IFRIC")
interpretations as adopted by the European Union. The financial
information set out in this half-yearly report does not constitute
statutory accounts as defined in Section 434 of the Companies Act
2006. The same accounting policies, presentation and methods of
computation are followed in this interim condensed consolidated
report as were applied in the Group's annual financial statements
for the year ended 30 November 2021. The auditor's report on those
financial statements was unqualified and did not contain any
statements under section 498(2) or section 498(3) of the Companies
Act 2006.
2. Taxation
No charge for corporation tax for the period has been made due
to the expected tax losses available.
3. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to ordinary shareholders of GBP591,000 (May 2021: loss
of GBP567,000; November 2021: loss of GBP1,699,000) by the weighted
average number of shares of 6,404,645,919 (May 2021: 6,209,415,290;
November 2021: 6,303,890,811 ) in issue during the period. The
diluted loss per share calculation is identical to that used for
basic loss per share as the exercise of warrants would have the
effect of reducing the loss per ordinary share and therefore is not
dilutive under the terms of Financial Reporting Standard 22
"Earnings Per Share".
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