Soil testing at Alba Mineral Resources plc’s (AIM: ALBA) Clogau gold licence area in North Wales has indicated a strike four times longer than the UK’s most prolific gold mine.
At 2km, the Cerys-Gwyneth anomaly would, Alba said, be four times larger than the anomaly associated with the main Clogau-St David's Mine.
While there are ten significant anomalies away from known major mines, Alba also sees more immediate potential from extending existing mines, as infill sampling has confirmed the continuity of an anomaly lying parallel to the Llechfraith adit and a major anomaly lying above historic Llechfraith workings.
Alba plans to drill a series of short holes to test this Llechfraith mine sequence, in which the Clogau shale is potentially up to 200m thick and the ground is owned by Alba.
Cash flow opportunity
“The fact that the Cerys-Gwyneth anomaly trend is four times the size of the anomaly over the Clogau Mine should need no further explanation,” said executive chairman George Frangeskides.
He said the key focus for the company in the coming 12 months will be “pushing forward with the work to re-open one or more of the historic mines for commercial production, as that represents a clear cash-flow generative opportunity for the company".
With the first phase of mine safety works completed, Frangeskides said the next stage will involve identifying potential zones of unexploited gold for commercial production, whether from the planned underground sampling and clean-up operation or from drilling of the Llechfraith mine target.
“In the 1980s, visible gold was reported in the Llechfraith mine adjacent to westerly dipping greenstone intrusives along the lowest number 4 level, which is only about 30 metres below the Llechfraith adit entrance.
“Despite that, only very limited further work was done in the area and, as such, this represents one of the best opportunities for the discovery of economic deposits of gold.”
Alba also noted that First Equity Limited would be its sole broker after joint broker SVS Securities was placed into administration.