Shares of Alba Mineral Resources plc (LON: ALBA) are stuck trading in a sideways range since June despite making several positive announcements that failed to impact its share price.
The company recently released a video outlining the progress made on its Clogau-St David’s gold mine in Wales. It has been sampling the waste rock discarded decades ago when the mine was still operational, and gold deposits were identified visually.
Alba Mineral was convinced that since the waste rock was not properly processed, the waste rock contained gold deposits that could be reclaimed using modern mining methods and initial results support the assumption.
The company is also working on getting permits to dewater some of the gold mines that used the physical method to identify gold deposits since they could contain significant gold deposits that were not immediately visible in the past.
Alba Mineral noted that it had completed phase 2 surface drilling at the St David’s gold mine. It has drilled ten holes for a total of 1470 metres, with each hole intersecting the main lode, which generated excellent results.
The company identified new targets and coarse veins that are yet to be exploited to map the entire project area. The firm has also taken historical mine samples with solid gold grades in the veins and Breccia-hosted mineralisation.
Alba Minerals is currently processing the waste rock and has discovered decent gold deposits that could generate decent cash flow for the company in future as it prepares to start production activities on the primary mine.
From a technical perspective, Alba shares are pretty attractive given that they have been trading a crucial support level over the past two months, raising the prospects of a future rally. However, we can’t tell with any degree of certainty when the rally shall happen.
*This is not investment advice.
Alba Minerals share price.
Alba Minerals shares have been trading sideways since June. When will they rally higher?
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