Shares of Alba Mineral Resources (LON: ALBA) are rallying on Friday after the company declared a significant exploration target following a detailed assessment of the Amitsoq Graphite Project in southern Greenland.
Alba said it commissioned Dr John Arthur to prepare an exploration target for each of the Amitsoq and Kalaaq deposits which comprise the Amitsoq Graphite Project in southern Greenland.
After an assessment, Dr Arthur concluded that the Amitsoq exploration targets are between 1.7 and 4.5 million tonnes with a grade range of between 24-36% graphitic carbon, for between 408,000 and 1.62 million tonnes of contained graphite.
While the Kalaaq exploration target is between 4 and 7 million tonnes with a grade range of between 23-29% graphitic carbon, for between 920,000 and 2.03 million tonnes of contained graphite.
However, Alba did warn that the potential quantity and grade of the exploration target for each of the Amitsoq and Kalaaq deposits is conceptual in nature, and there has been insufficient exploration to estimate a mineral resource.
George Frangeskides, Alba's Executive Chairman, commented: “Having now declared an initial Exploration Target of between 1.3 to 3.6 million tonnes of contained graphite for the two deposits combined, this gives us great confidence to move forward to a drilling programme at Amitsoq.”
“The first aim of our drilling programme will be to declare a maiden JORC-compliant Mineral Resource Estimate at the Amitsoq deposit, where our test work programme has not only confirmed that our graphite has exceptionally high average grades but also that it is battery-grade material which can be sold into the electric vehicle sector, which is by far the largest growth market for graphite.”
Alba Mineral Resources share price jumped to 0.33p after the open on Friday. It is currently trading at 0.3056p, up 5.03%.
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Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.