(Sharecast News) - Alba Mineral Resources updated the market on the Clogau-St David's Gold Mine on Monday, where assay results from a phase two sampling programme at the historic Waste Tip returned gold grades of up to 11.35 grams per tonne.
The AIM-traded firm said the whole-sample analysis averaged up to 3.5 grams of gold per tonne, similar to the phase one results, while the average gold grades returned for the fine fractions of less than one millimetre were up to 2.13 grams per tonne.
Further size fraction analysis highlighted how gold was concentrated in the finest material extracted from the dump of less than one millimetre, the company reported.
It said 107 kilograms of concentrate was produced in its pilot processing plant from 8.76 tonnes of sub-20 millimetre fines material collected in January.
The panning of one sample of the less-than-20 millimetre fraction revealed a material amount of visible gold, Alba said.
Looking ahead, the firm said it would now upgrade the 107 kilograms of concentrate, assess the economic potential of processing the section of the Waste Tip, and develop an outline mining plan.
It would also evaluate taking a further bulk sample from lower down within the Waste Tip to access potentially higher-grade material.
"With gold grades of up to 11.35 grams per tonne, in tandem with a successful initial bulk sampling programme, we hope to fast-track the start of low-cost production from the Waste Tip at this historic gold mine," said executive chairman George Frangeskides.
"Additionally, given the fine nature of the material that has the potential to filter downwards, we are exploring options to take a second bulk sample from the lower reaches of the Waste Tip that could further strengthen the project's economics."
At 1211 GMT, shares in Alba Mineral Resources were up 2.56% at 0.2p.
Alba Mineral Resources (ALBA)