Alba Mineral Resources, the diversified mineral exploration and development company, has conditionally agreed to buy a further 41% interest in Gold Mines of Wales. Subject to completion, Alba will then own 90% of the Clogau Gold Project. The offer is for £650,00 in shares with an effective debt write-off of £1M.
In an interview with London South East, Executive Chairman George Frangeskides said the intention is to reopen the mine and bring it back into production for the first time in 20 years. The area includes 107 square km of highly prospective gold targets and former gold workings. Alba's review of the area suggests there is high potential to find unworked veins containing high grade gold mineralisation similar to the 130,000 ounces extracted historically, and potentially a new Clogau equivalent.
Alba also holds a 12% interest in Horse Hill. Horse Hill gets to its next phase of development, and - shortly after this interview was recorded - an RNS was released announcing the 4-day clean up phase of flow testing was complete. Dry oil has flowed to the surface for 4 days of successful testing. To date 463 barrels of light sweet crude have been recovered. "The flow test programme is estimated to take 150 days and the commercial operator is still targeting commercial production in 2019".