(Alliance News) - Alba Mineral Resources PLC on Friday announced it has been awarded the exclusive exploration rights to the Gwynfynydd Gold Mine in north Wales.
The exploration and development company with assets in Greenland and the UK now has the exclusive exploration rights over the entire length of the Dolgellau Gold Belt for six years.
Alba said the Gwynfynydd Gold Mine is the second largest producer of gold in the UK's history, second to Clogau-St David, which the company is also exploring.
Gwynfynydd Gold Mine has historically produced around 45,000 ounces of gold at a mining grade of 15 grams per tonne.
Commercial operations at Gwynfynydd ceased in 1999 when the gold price was only around USD300 per ounce, Alba said.
Executive Chair George Frangeskides said: "We are delighted to have secured the exclusive mineral exploration rights to the Gwynfynydd Gold Mine and its surrounding exploration ground. Alba now has the exclusive exploration rights across the entire length of the Dolgellau Gold Belt."
"Gwynfynydd shares many of the same characteristics and the same geological setting as Clogau-St David's, and as such we intend to approach the exploration and development activities at Gwynfynydd in much the same way as we have done at Clogau, using all the tools in the extensive modern-day exploration tool-box, from underground 3D mine scanning to geochemical soil sampling, surface trenching, diamond drilling and bulk sampling."
Additionally, Alba said drilling at Clogau-St David is going well.
Results for Clogau-St David will not be known and reported until all the drilling has been completed and the drill core analysed, Alba said.
Alba shares were up 7.8% 0.485 pence each in London on Friday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Alba Mineral Resources (ALBA)