Offer to Renew Prospecting Licence 3824 (Co. Limerick) and
Planned Drill Programme
Alba Mineral Resources plc (AIM: ALBA) is pleased to announce that it has had confirmation from the Exploration and Mining Division (“EMD”) of Ireland, part of the Department of Communications, Climate Action & Environment, of an offer to renew Prospecting Licence 3824 (“PL 3824”) for two years to 26 May 2020, subject to certain conditions. Alba holds 100 per cent of the Limerick base metal project in the Republic of Ireland through its subsidiary, Aurum Mineral Resources Ltd (“AMR”).
A review of the exploration results completed to date on the Project has identified up to five drill targets with the correct indicative geological framework and associated geophysical and geochemical anomalies to potentially host zinc-lead (“Zn-Pb”) mineralisation. Drilling is being planned that will test some of the targets identified with the work anticipated to be completed in the coming summer months.
Licence Renewal Conditions:
The offer to renew is subject, inter alia, to the following conditions:
· Licence renewal would be for two years, until 26 May 2020.
· AMR would be required to drill test one or more of the targets identified by AMR in its recent review, with expenditure of at least €50,000 and reporting of the results to EMD by 1st December 2018.
· In advance of a drilling programme, AMR is required to submit an environmental screening report to EMD which assesses whether the activity is likely to have a significant effect on the environment. The site visit for this assessment has been completed on behalf of AMR.
· AMR must also commit to spending a further €50,000 in the subsequent 18-month period ending 26 May 2020.
Alba’s Executive Chairman, George Frangeskides, commented:
“Our recent technical review of our 100 per cent owned Limerick Project concluded that the Project is host to a number of attractive drill targets. Given the strategic location of the ground and the fact that we are able to test some of these targets relatively inexpensively, we have decided to seek a renewal of our licence.”
“The Irish mining sector has witnessed something of a resurgence in recent months, with increased activity within the established Irish Zinc District, in which Alba’s Limerick Project is located. The Irish Ore Field has been a major source of zinc production since the 1960s and is currently home to some of Europe’s largest zinc projects including the Navan (Tara) zinc-lead mine (Boliden), the Pallas Green deposit (Glencore) and the past producing Lisheen mine (Vedanta) and Galmoy mine (Lundin Mining). Alba’s neighbour Group Eleven Resources Corp. last month announced a maiden independent Mineral Resource estimate at its Stonepark zinc project, some 10 km from Alba’s Limerick Project.”
Exploration Review and Target Generation
The geology of the licence area is dominated by Waulsortian Reef Limestone Formation and the underlying Ballysteen Formation. This sequence is inferred to subcrop in the west and south of PL 3824 and together, these units represent the host and footwall lithology respectively for most of the Zn-Pb deposits in the Irish Midlands. Historically, only five drillholes have been completed in the licence, one by AMR and four by former JV partner Teck Resources. These low levels of drilling are unusual in the Irish context and, for this reason, the area is considered relatively underexplored.
A total of five targets have been identified from our review of the available data.
As part of the exploration programme, AMR is required to submit an environmental screening report that assesses the potential environmental impact at the suggested drill targets. The site visit for this has been completed on behalf of AMR and upon finalisation and review, the final drill targets will be selected. It is then the intention to drill a selection of the targets, with the work planned for the summer months to enable all results to be collated and reported ahead of the 1 December 2018 deadline.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
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