Member Info for ocelot

... we will continue to seek out exploration and mining opportunities, especially underappreciated ones, which have the potential to add serious value to the Company for the benefit of our shareholders. That is how we found the Amitsoq mine and it is also how we found Clogau itself.

"Clogau itself". For GF, therefore, Clogau adds serious value to Alba, it IS a success story.

Those are my thoughts, too, Mullins: this is an RNS which suggests considerable confidence in the success of Clogau.

Blasting was due to resume last Friday. The placing raised funds to upgrade their processing plant. For the how and when of the release of the results, suggest you put the question to the company via its hub.

Spread OVER (not "of") 325 tonnes of ore, 144.5 ounces of gold is the equivalent of 0.445 oz per tonne.

Spread of 325 tonnes of ore, 144.5 ounces of gold is the equivalent of 0.445 oz per tonne.

At £2,075.71 an ounce, the latest placing of £300k is the equivalent of 144.5 ounces of gold. Extract 144.5 ounces and the placing becomes redundant.

1/ there are the commemorative gold coins;

2/ blasting at Level 5 was due to resume by last Friday.

325 tonnes of ore (including 25 tonnes from Level 4.5) means that even relatively modest average gold content per tonne should produce material revenue for Alba

In the event of success in locating bonanza grades then, given the present share price, Alba would be a multi-bagger:

1/ the publicity would be big;

2/ spot gold closed on Friday at £2,075.71 an ounce, so 100 ounces would be £207,571. At this price for gold, the figures accumulate very quickly (and this is before making any allowance for the premium enjoyed by Clogau gold).

"Upgrade works in respect of our processing plant to be able to process the gold content from the circa 300 tonnes of ore expected to be extracted from the current blasting programme". (RNS of 06/11)

There is no doubt there will be gold content to be processed, but nobody can know in advance its average grade.

Assuming 1oz/tonne, Insertwittyname calculated £650k of revenue from 325 tonnes of ore, including the 25 tonnes from Level 4.5.

I applied an average of 3.59 from the "background gold population" at Level 4 to arrive at revenue of £2.3m+.

But Level 4.5 was, and Level 5 is being, blasted in the search for bonanza grades of gold, in the hundreds of oz/t. And, to date, all of the work undertaken by Alba has always either met or exceeded expectations.

The revenues calculated by Insertwittyname and myself are therefore, imho, both prudent because they both exclude the discovery of bonanza grades.

For myself, the share price is thoroughly depressed. Not only does it take no account of any possibility of success in locating bonanza grades of gold but, at its present level, it doesn't even seem to believe Alba will find any gold at all.

Asllankukeli,

What is the price of the option? It's option money, isn't it? so the placing is for more than the option alone. In particular, as far as I am concerned, it is intended to:

"Upgrade works in respect of our processing plant to be able to process the gold content from the circa 300 tonnes of ore expected to be extracted from the current blasting programme".

Believe management is confident in Clogau's prospects so believe the share's price is way out of kilter with its underlying asset.

From the 26/03 RNS:

While the planned bulk sampling within the extension to the Llechfraith Payshoot below No.4 Level (see the RNS of 22 March 2024) will target "bonanza" type grades of the kind found in previous periods of mining at Clogau, if the grades encountered on No.4 Level to date are replicated more extensively, this is expected to significantly strengthen the economic case for reopening the mine for commercial production.

UK natural gas futures rose above 107 pence per therm, reaching a one-week high, in line with European price trends driven by weather forecasts for colder, less windy conditions in Europe next week. Also, the UK's reliance on limited gas storage and European infrastructure increases its vulnerability to supply disruptions. The market is also factoring in the potential impact of Donald Trump's re-election, particularly his stance on Ukraine and US LNG exports, which could influence longer-term supply dynamics.

https://tradingeconomics.com/commodity/uk-natural-gas

Thanks, Mullins.

Believe their acquisition of the Swedish rare earth option is an expression of their confidence in Clogau's prospects.

Best wishes.

In his post of 19:25 yesterday, Insertwittyname arrived at revenue of £650k by applying 1 oz per tonne to a total of 325 tonnes of blasted ore.

The RNS of 26/03 provided us with the 3 oz/t figures of 2.87, 3.59 and 4.30 for an average of 3.59.

Applying this figure to 325 tonnes of blasted ore gives us revenue of £2.3m+.

But these figures come from the "background gold population" at No.4 Level.

Hopefully the gold content will be higher the closer Alba gets to its target area at Level 5 (and also at Level 4.5).

All of this is before any premium for Welsh gold.

They will be looking to achieve a significant premium to the spot price given the provenance of the gold.

25 tonnes extracted prior to blasting. About 300 tonnes expected to be extracted from the blasting programme. Plus waste tip extraction.

Isn't management acting as if it believes all of this will generate significant revenues?

Article on Bloomberg entitled: Europe's Dark, Windless Days Show Risk of Renewables Rollout

The "Dunkelflaute" phenomenon stresses the need for flexibility and storage.

From an answer to an investor's question on their site:

"... Production of gold products – we have already announced the production of a limited first run of commemorative gold coins, which will be sold to generate revenues. And we intend to do the same with gold produced from the current bulk sampling programme and gold produced from further waste tip extraction ..."

Go on their site's hub and put your question to them.

Finnsbo: "We're obviously very positive about it and encouraged by all of the work that has been done so far".

Brief video from GF re yesterday's announcements.