Alba Mineral Resources is exploring the former Clogau mine and other potential gold sites
A mineral firm wants to re-start gold mining in North Wales after taking a major stake in the owner of the ‘Clogau Gold Project’.
Alba Mineral Resources plc announced it has taken a 49 per cent interest in Gold Mines of Wales Limited(GMOW), which owns the Clogau Gold Project situated within the Dolgellau gold belt.
The project comprises the Clogau Gold Mine – where mining ended in 1998 – and includes a large number of highly prospective gold targets and former gold workings within a total option area of 106.94 km².
Alba’s review of the project concludes that there is a high potential to find unworked veins containing gold mineralisation of similar grade to that known in historic mines in the area.
The focus will be on bringing the Clogau Gold Mine in Bontddu back into production and also making a push into the regional exploration of the wider project area.
This latest development is not related to the successful jewellery brand.
George Frangeskides, Alba’s Executive Chairman, said: “We are delighted to announce that we have secured a significant stake in the Clogau Gold Project.
“The project fits squarely within Alba’s strategy to identify projects which include former working mines which have both near-mine expansion potential but also have significant exploration upside in the wider project area.
“The opportunity presented by this project is pretty unique – high grade gold in the heart of the United Kingdom, the fact that Welsh gold attracts a significant premium over spot rates, the historic connections of Welsh gold with the heritage of the United Kingdom, the potential for finding more gold in the vastly under-explored exploration ground – all these are factors which together make a strong case for investment.
“The Clogau Gold Mine is also complementary to our existing UK onshore assets, being our oil and gas interests at Horse Hill and Brockham in the Weald Basin in Surrey.
“In these times of great change for the United Kingdom, Alba is championing our domestic natural resources industry and channelling investment back into UK PLC.”
Alba – based in London – has oil and gas interests in the UK and uranium, graphite, iron ore mining interests in Greenland and Africa.
The Dolgellau gold belt has produced about 131,000 oz of gold, by far the most of any region within the United Kingdom.
Most of this gold (81,000 oz) has been exploited from the historic Clogau-St David’s mine.
The British Royal Family has been using Welsh Gold to create their wedding rings since 1923.
Welsh Gold bullion is potentially worth between three and five times the spot gold price.
Alba says there is an Option Agreement between GMOW, Her Majesty The Queen and The Crown Estate Commissioners by which agreement GMOW was granted the right to prospect and mine the project area subject to the terms and conditions set out in the agreement.
Owen Hughes Business Correspondent
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