Alba Mineral Resources plc (LON: ALBA) share price plunged 8.13% despite the positive update from its investee company GreenRoc Mining plc.
GreenRoc today released positive results from its field programme at the Kalaaq Deposit. It confirmed substantial mineralisation zones at the Kalaaq deposit, which is part of the Amitsoq Graphite Project.
The highlights of today’s announcement include the discovery of new mineralisation zones combined with an expansion of the previously identified zones.
GreenRoc reported a 360m southward extension of the Upper Graphite Zone (UGZ) initially identified in 2017, which is now open along the strike.
The company also extended the Lower Graphite Bed 300m to the North along the strike, where the company recorded values of up to 33.1 C(g)%.
The recently discovered Niels Hede Pedersen (NHP) Zone has led to the extension of the graphite mineralisation at the BLZ Zone for an additional 1.3 kilometres and is also open on strike.
The decline in Alba Minerals share price was confounding given the positive update released by GreenRoc Mining, 54% owned by Alba. Investors sold Alba shares maybe because they expected better results.
Investors could also have been voicing their discontent that Alba Minerals does not own 100% of GreenRoc.
The company also singled out a new development area known as the New Domain Zone (NDZ), where it got a grab sample of 32.1 C(g)% grade.
Kirk Adams, GreenRoc's CEO, commented: “This summer's campaign at the Kalaaq Deposit has been highly successful in extending the strike lengths of the known mineralised zones, discovering new zones of mineralisation, and identifying high-grade samples outside of the Exploration Target area. The assay values from the sampling programme range from 17.43 to 33.1 C(g)%, and this confirms our faith that this is an extensive high-grade graphite area.”
The company now intends to use the results generated by the field sampling programme to design a drilling campaign targeting the discovery of the final dimension of the mineralised zones.
*This is not investment advice.
Alba Minerals share price.
Alba Minerals share price plunged 8.13% to trade at 0.1447p, falling from Monday’s closing price of 0.1575p.
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