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Summary
- Alba Mineral Resources announced that it has completed four drill holes with a total vertical length of 252 metres at Clogau gold mine.
- It has received the extension permit to continue underground drilling until the end of October 2020.
- Bezant Resources PLC may receive £5.6 million with respect to its 20 percent stake in the Mankayan project following the agreement between AsiaPhos Ltd and MMJV Pte Ltd.
- It has started the exploration work and drill target testing at Hope copper-gold project in Namibia.
Alba Mineral Resources PLC (LON:ALBA) and Bezant Resources PLC (LON:BZT) are two basic materials stocks. Shares of ALBA were down by around 12.0 percent, and shares of BZT were up by close to 38.08 percent from their last closing pricing (as on 5 October 2020, before the market close at 1:40 PM GMT+1).
Alba Mineral Resources PLC (LON:ALBA) - It would soon start the first stage of the surface drilling
Alba Mineral Resources PLC is a UK based mining company that is engaged in the exploration and development of projects in Greenland, Wales and Ireland. It also has an investment in the onshore UK oil & gas sector. The Company has an interest in projects such as Amitsoq graphite, Thule Black Sands, Melville Bay iron ore, Inglefield land polymetallic, Gold Mines of Wales and Horse Hill oil & gas. Alba Mineral is listed on the FTSE AIM All-Share index.
Asset portfolio
(Source: Company website)
Update on Clogau-St David Gold Mine as reported on 5 October 2020
The Clogau gold mining project is situated in Wales, and the Company owns a 90 percent stake in the project. Alba Mineral is performing an underground drilling and bulk sampling programme at Clogau, and it announced that it had completed the four drill holes with a total vertical length of 252 metres. It has received the extension permit to continue underground drilling until the end of October 2020. The Company has submitted the notification to the planning authority for the start of the first stage of the surface drilling programme. Drilling of around 400- 450 metres is expected to be completed by the end of the drilling programme. The drilling is currently suspended, but it would resume soon in October. The mining team has collected 12 tonnes of material from four targets. The diamond drilling programme would start that would have a vertical length of 1,500 metres in the first phase. The Company plans for drilling of 5,000 metres that would be conditional. The Company is also setting up its pilot processing plant in proximity to the mining site. Alba Mineral has ordered an impact crusher that could process three tonnes per hour and a gold concentrator that could process 1.5 tonnes per hour.
The pilot processing plant at Clogau gold mine
(Source: Company website)
Share Price Performance Analysis
1-Year Chart as on October-5-2020, before the market close (Source: EODHD/Others, Thomson Reuters)
Alba Mineral Resources PLC's shares were trading at GBX 0.4048 and were down by close to 12.0 percent against the previous closing price (as on 5 October 2020, before the market close at 1:40 PM GMT+1). ALBA's 52-week High and Low were GBX 0.5796 and GBX 0.04, respectively. Alba Mineral Resources had a market capitalization of around £26.20 million.
Business Outlook
Alba Mineral highlighted that gold quality at the Clogau mine is good and it could fetch a significant premium over the spot price. The Company is the sole producer of Welsh gold, and thus it can control the supply and pricing. For commercialization of gold from the mine, it would look to partner with international jewellery brands, and it would make gold coins and bars. The pilot gold processing plant in Clogau is expected to start in Q4 2020, but it is subject to some regulatory approvals. Once the production at the pilot plant commences then Alba Mineral would seek additional capacity, and it would look for approvals for long-term commercial production.
Bezant Resources PLC (LON:BZT) - Acquired the interest in Hope copper-gold project in July 2020
Bezant Resources PLC is a UK based company that is focused on copper-gold projects. The Company has a portfolio of assets that include Kalengwa project in Zambia, Hope Copper-Gold project in Namibia, Eureka project in Argentina and Mankayan project in the Philippines. Bezant Resources is included on the FTSE AIM All-Share index.
Update on the transaction in Mankayan copper-gold project
On 5 October 2020, Bezant Resources announced that a non-binding agreement had been signed by AsiaPhos Ltd to acquire MMJV Pte Ltd. MMJV holds 80 percent stake in the Mankayan copper-gold project, whereas the remaining 20 percent is held by Bezant Resources. AsiaPhos is a Singapore listed company that is planning the acquisition through reverse takeover via the issue of its share for the lower of either £42 million or 50 percent of the independently agreed valuation. If the transaction between AsiaPhos and MMJV is completed then as per the terms between Bezant Resources and Mining and Minerals Industries Holding Pte Ltd (MMIH), it will get shares in the listed entity MMJV that would be around £5.6 million. MMJV is a 100 percent owned subsidiary of MMIH.
Exploration update at the Hope copper-gold project in Namibia
On 1 October 2020, Bezant Resources reported that it is starting a geophysical survey and drilling programme at Hope copper-gold project in Namibia. The Company has recently identified a 3-kilometre geophysical target at Hope North. The drilling at Gorob-Vendome is focused on finding gold grade within the delineated copper resource. The Hope copper-gold project is situated in the Matchless Copper Belt of Namibia. The Company has three exploration licenses that have a series of gold deposits and are known as Hope, Gorob-Vendome and Anomaly. Bezant acquired the interest in the Hope copper-gold project in July 2020.
Share Price Performance Analysis
1-Year Chart as on October-5-2020, before the market close (Source: EODHD/Others, Thomson Reuters)
Bezant Resources PLC's shares were trading at GBX 0.2002 and were up by close to 38.07 percent against the previous closing price (as on 5 October 2020, before the market close at 1:40 PM GMT+1). BZT's 52-week High and Low were GBX 0.34 and GBX 0.045, respectively. Bezant Resources had a market capitalization of around £4.34 million.
Business Outlook
The Company is optimistic over the future of copper and believes that the high prices of gold would be maintained despite the volatility in the market. The testing of gold at Gorob would be the primary focus of the Company. It plans to conduct the geophysical electromagnetic survey at both Hope and Gorob project to identify gold.
