Shares of AIM-quoted Alba Mineral Resources (LON: ALBA) are rallying on Monday on news that it has obtained an additional exclusive mineral exploration licence.
The additional licence is also known as an option agreement, which secures the company further prospective gold exploration ground within and adjacent to the Dolgellau Gold Field. The licence has been granted to Alba's wholly-owned subsidiary Dragonfire Mining Limited.
The new licence lasts for six years and covers all areas of Clogau Shale exposure north of the Barmouth Estuary, adding an additional 64 km2Â of ground and bringing the total area under licence to Alba to 188 km2.
Alba said its geologists have identified a suite of prospective structures which run over 10km. They will investigate the structures further, especially where they interact with the Clogau Shales.
Alba's Executive Chairman, George Frangeskides, commented: “We are very pleased to have been granted this new licence area within the Dolgellau Gold Field. It consolidates our control of the prospective gold exploration ground both within and adjacent to the Gold Field.Â
“This new area will be included within our overall plan for continued regional exploration of the Dolgellau Gold Field, details of which will be announced soon.”
The company's shares have rallied 6% to 0.27p following the news. However, in 2021, Alba's share price has declined by over 54%, trading mostly sideways since May.Â
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