15th May 2006 07:01
Alba Mineral Resources PLC15 May 2006 Alba Mineral Resources plc ("Alba" or "the Company") Alba options Arthrath nickel-copper-PGE project to Inco Alba Mineral Resources plc (AIM: ALBA), the UK based exploration company, ispleased to announce it has, through its wholly owned subsidiary Aurum MineralResources Limited, entered into an exploration option and joint ventureagreement with Inco Europe Limited ("Inco"), a wholly owned subsidiary of IncoLimited, one of the world's largest nickel producers, in respect of theCompany's Arthrath nickel-copper-PGE project in Scotland. Highlights • Inco has the right and option to earn a 60% interest in the Arthrath project by funding €2,500,000 of exploration expenditures over a four year period • Work undertaken at Arthrath to date by Alba has confirmed the presence of extensive disseminated magmatic nickel-copper sulphide mineralization with features similar to other feeder intrusion-related nickel systems worldwide. • Programmes of deep penetrating, ground electro-magnetic geophysics, specialized partial leach shallow soil sampling and diamond drilling programmes are planned during 2006 Lance O'Neill, Chairman, Alba commented; "We are very pleased to be able toannounce this deal that we believe represents an extremely important developmentfor Alba. We are delighted to have a company of Inco's reputation working withus on our Arthrath property, which we believe holds significant commercialpotential for the Company. The agreement gives Alba exposure to Inco's extensivenickel exploration expertise, which will be invaluable in developing the nextphases of our exploration programme." Option Agreement Alba has entered into an exploration option and joint venture agreement (JV)with Inco in respect of the Company's Arthrath nickel-copper-PGE project, inwhich the Company holds a 100% interest. The property is located inAberdeenshire, Scotland and work to date has confirmed the presence of extensivedisseminated magmatic nickel-copper sulphide mineralization with featuressimilar to other feeder intrusion-related nickel systems worldwide. Under the terms of the agreement Inco has the right and option to earn a 60%interest in the project by funding €2,500,000 of exploration expenditures over amaximum four year period. Inco can earn a further 10% interest by conducting afeasibility study at its own expense. If the Inco option is exercised eitherparty can maintain its interest in the JV by contributing according to itsparticipating interest in the JV or can elect to dilute its interest to 10%whereupon the interest will convert to a 2% net smelter return royalty. Alba and Inco plan to conduct programmes of deep penetrating, large-loop groundelectro-magnetic geophysical surveying and specialized partial leach shallowsoil sampling techniques. Drilling of identified targets will be undertakenwhere warranted. ENDS For further information contact: Lance O'Neill, ChairmanAlba Mineral Resources plc Tel: +44 (0)20 7499 8334 Wilson Robb, Exploration DirectorAlba Mineral Resources plc Tel: +353 (0)46 9059959 Justine Howarth/ Victoria ThomasParkgreen Communications. Tel: +44 (0)20 7493 3713 Liam MurrayCity Financial Associates Tel: +44 (0)20 7090 7800 Notes to EditorsAlba Mineral Resources PLC is a junior explorer with a diversified commodityportfolio, primarily nickel, gold, copper, cobalt and platinum group metals,focussed on the Appalachian-Caledonide trend, a zone extending from the easternseaboard of North America to Scandinavia. Alba currently has interests in anumber of well-researched properties in Scotland and Ireland owned in its ownright or in conjunction with other parties. BackgroundWork at the Arthrath property has targeted the strike length of a 10 kilometrelong east-west trending mafic intrusion, which is up to 600 metres wide. Between1968 and 1973 previous operators drilled 36 drill holes and encountered nickel-and copper-bearing sulphide mineralization over a 4.5 kilometre strike length.This known mineralized area is geographically central to the area being exploredby Alba. Previous drilling was widely spaced and did not, in Alba's opinion,adequately test the potential for high-grade massive sulphide bodies.Importantly, there was no systematic analysis for cobalt or PGEs of previousoperator drill core. Correlations between the Company's verification holes and historical drill holesAD17 and AD20 have demonstrated a potential for up to 350 metres of down-dipextension of the mineralization from surface, with further depth and lateralpotential currently untested. The drilling has confirmed that the mineralizationin both holes increases in intensity towards an un-mineralized norite footwall,suggesting at least two pulses of magmatism. The presence of more than one magma pulse, in conjunction with diagnosticsulphide and lithological textures seen in drill core suggest formation within amagma conduit. Current interpretations of data from nickel deposits at Voisey'sBay, Canada, and Jinchuan, China, are indicative of similar conduit-typegeological settings. Strong correlations exist between nickel, sulphur and iron,suggesting that most of the nickel is present in sulphide, and indicating thatany massive sulphides present in the system could contain grades ofapproximately 2.5-3.0% nickel. With the prospective nature and the geographical extent of the Arthrathintrusion confirmed, the next phase of exploration during 2006 will focus on thediscovery of semi-massive to massive sulphide zones within this large system. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Alba Mineral Resources