Alba Mineral Resources plc (AIM: ALBA), the diversified mineral exploration and development company, is pleased to announce that the Company’s broker First Equity Limited, has today published a Research Note (‘Note’) on Alba which may be viewed on the Company’s website at www.albamineralresources.com (under Investor Relations)
Market’s Gold Stampede Overlooks Alba’s Gold Production Potential?
Over the last two months we have witnessed the share prices of many gold-focused AIM-listed companies appreciate considerably as investors seek to profit from safehaven gold exposed stocks with capital appreciation prospects. One company, Alba has been overlooked.
It holds a 90% interest in a key gold project at Clogau, in North Wales. Along with benefiting from exploration upside and an opportunity to add value by applying modern exploration techniques, Alba could be within 24 to 36 months of re-opening the mine which last produced in 1998, when gold traded at only 20% of its current price.
In addition to Clogau, as we will examine in this research note, Alba has many other projects holding potential to be ‘Company Makers’ across a range of commodities, including those where a JORC resource could be delivered within the near term, and one or more assets which could potentially be sold for a consideration comfortably exceeding Alba’s current market cap.
Key Project Points
* At Clogau we believe the re-opening of an initial small-scale gold mining operation could be accomplished within the next 24 to 36 months. Mining at Clogau will provide Alba with the opportunity to sell ‘Welsh’ branded gold at above spot prices.
* Along with exploration upside on the target rich Clogau licences, where 80,000 ounces of gold were historically mined, there is also potential to prove up a maiden JORC resource within the near term.
* Results from the pre-feasibility at BlueJay Mining’s Dundas Ilmenite deposit last year, which is along the coast to Alba’s Thule Black Sands (TBS) project, should improve Alba management’s ability to pursue off-take discussions with strategic investors and industrial groups.
* On the high-grade graphite project at Amitsoq, we look forward to completion of the next field season, the objective of which is to define a maiden JORC resource.
* A rebound in oil prices should improve the Group’s prospect of disposing its 11.765% Horse Hill stake to attain what could be a sizeable windfall, well over the current market cap. If Alba chooses to keep its stake it will benefit from cash flow and advancement of the project as it scales up to a six well 3,500 bopd operation.
#First Equity Limited acts as Broker to Alba Mineral Resources (ALBA.L)
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