Alba Mineral Resources reports progress at Clogau-St David's

29th Oct 2024 13:46

(Sharecast News) - Alba Mineral Resources updated the market on operations at its Clogau-St David's Gold Mine in north Wales on Tuesday, reporting progress at its priority Llechfraith Target.

The AIM-traded firm said underground operations were advancing, with blasting recently conducted at levels 4.5 and 5.

It said that while newly-blasted ore remained underground, it was planning to transport it to the surface soon for sample processing and assay work.

The company noted an unexpectedly high volume of in-situ ore at levels 4 and 5 from historic mining, resulting in an additional 25 tonnes being extracted before recent blasts.

Although that increased the project's timeline, Alba viewed the added ore as a positive for potential gold recovery.

Health and safety inspections by the HSE's Inspectorate of Mines and Natural Resources Wales had been completed, with Alba addressing requested remedial work.

Despite some delays to its bulk sampling schedule, Alba anticipated the next sequence of blasting on level 5 to start later in the week.

Tests to date had demonstrated that Clogau's rock structure was compatible with low-impact explosives, which Alba saw as a beneficial factor for the project's ongoing development.

Additionally, the company said it was planning to auction a limited series of commemorative gold coins in the coming weeks, sourced from test production gold, with further details to follow.

"Since our last update, we have completed a substantial amount of work underground," said executive chairman George Frangeskides.

"The need to clear out a large volume of residual ore, combined with additional remedial measures requested by the Mines Inspector, has pushed out our planned blasting timeline, however our mining team anticipate being able to recommence blasting on No.5 Level later this week.

"The blasting we have undertaken to date, both on 4.5 and 5 Levels, has been successful and confirmed the suitability of the deflagrating explosives we are currently using."

Frangeskides said that also gave the company confidence that the blasting programme should be able to proceed efficiently going forward.

"In related news, we have been working hard also on our plans for the commercialisation of gold produced from Clogau.

"We intend to release soon the details of a limited run of commemorative coins which are being produced from our test gold production to date."

At 1321 GMT, shares in Alba Mineral Resources were up 10% at 0.05p.

Reporting by Josh White for Sharecast.com.