Sunday, 1 September 2013

Alba Mineral Resources ( Mauritania ).

  The excitement of the 200% rise and consolidation at 60% to 100% is almost complete . Postings have increased exponentially , mainly of little substance .
  Why to stick with this minnow ?
     Uranium in Mauritania , Now this licence holds a lot more than has been market detailed , I am not usually wrong on this count . People seem to underestimate uranium and it`s links to other minerals , gold / silver / others. There are several other companies from the UK , also trying to find these minerals in the same area .
 All a bit coincidental that Mauritania is the place to be ? Perhaps .
 Others things of note are why no RNS , " no reason for rise? "
 Why the BOD are taking no money from the company ?
 Why have all the major shareholders increased their holdings , over the past three years ?
 That`s four good reasons to stick with it . Let`s hope the lucky strike news comes through sooner , rather than later . Having seen sells at 0.15 . Seeing them now at  0.35 , gives a warm feeling to the cockles .
 Good luck to the geologists on their hunt for Red October .


  History Courtesy of Tricky Dicky Two ;

   Alba Mineral Resources (ALBA.L) shares in issue 110m, share price 0.5p – 1.0p., current market cap £0.68m. They are an exploration company and describe themselves as:-

‘Alba Mineral Resources PLC is a committed, technically driven explorer with a commodity focus on uranium, nickel and gold. Alba currently has interests in a number of well researched properties owned in its own right or in conjunction with other parties, primarily in Scotland, Mauritania and Sweden. The Company also has wholly-owned gold and base metal interests in Scotland and Ireland.’
Forte Energy operate in the north of the country, this is mainly a uranium play. Forte look to be closing in on success and Alba have tenements and uranium licenses in the same region. In the south-west of Mauritania Alba are applying for several IOCG licenses and its in this area I see a real opportunity. The copper, gold, chromium and rare earth metals are all present in the area. 

Alba Minerals are currently priced to go bust, however, one month ago existing investors bought large numbers of shares at 0.5p. After ringing the company with an offer to invest direct I was left with the impression they were not interested. An extraordinary reaction given their current cash balance.

A placement or takeover may be just around the corner. They may simply run out of money. The reaction to my offer to invest direct together with shares being bought 4 weeks ago suggests something is afoot. 

The salient points to note:-

1) Alba currently have 4 months of money left in the bank with a cash burn of £4,000 per months. See recent RNS dated 28th. August 2009.

2) Regency Mines and Starvest PLC recently invested in Alba Minerals, see RNS dated 3rd. August 2009. The placement resulted in the following share holdings:-

Name Previous Current %

Michael Nott 5,000,000 5,000,000 4.6%
Regency Mines 4,000,000 17,934,047 16.3%
EP&F Capital plc 4,000,000 4,000,000 3.6%
Starvest plc 2,000,000 13,875,000 12.6%
Aurum Services 1,450,316 1,450,316 1.3%
Sandy Archibald 500,000 4,000,000 3.6%
Kerr Anderson 200,000 3,570,000 3.2%
Vaughan Williams 100,000 3,470,000 3.2%

3) Starvest PLC are a major shareholder in Regency Mines.

4) Directors of Alba Minerals are also directors of Red Rock Resources. Regency Mines have a substantial stake in Red Rock Resources. Michael Nott is a directors of both Alba and Red Rock. Nigel Duxbury is a director of Alba and EP&F Capital. Sandy Archibald is a director of Alba and Arum Services.

5) Regency Mines recently announced, 10th. September 2009, £3m of funding through a SEDA.

Alba Mineral Resources have a 50% stake in a company called Mauritania Venture Ltd. The remaining 50% is own by Fosse Investments Ltd.

It’s the prospects in Mauritania that are of particular interest. The below link highlights the areas in question.
Alba are working in two distinct areas in the country, north and south-west. The tenements in the north are very close to where Forte Energy are currently establishing uranium resources. Alba have uranium exploration licenses for the blocks in the north of the country in the Bir En Nar region. Forte Energy should be announcing before the end of this year their results from the same area which should trigger a JV with Areva the big French nuclear company. They have also discovered copper, gold and chrome in this region (see 28th. Feb announcement below).

In the south west of the country Alba are currently applying for five IOCG style mineralization permits. In this area Alba will be looking for copper, gold and rare earth metals. Already working in the south west are Shield Mining and Aura Energy (both ASX listed).

Why are Alba’s tenements in Mauritania interesting? The attached map shows where Alba’s licenses are in Mauritania (under the name of Mauritania Ventures Ltd. of which Alba Minerals own 50%).
Transportation links to the north of the country are poor at present, see attached map below. The Forte Energy JV with Areva, however, will result in the area being developed and new transport links being built. This should result in the Alba licenses in the north becoming far more economic to develop and therefore valuable.
The attached announcement from 7th. July 2008 confirms the existence of uranium. A more detailed report would be required to confirm the quantity and quality of the resource.
The tenements in the south west of the country are particularly interesting. The attached survey maps show the existence of copper, gold and rare earth metals in or near the licenses Alba Minerals are currently applying for.
As far as I’m aware no detailed exploration work has been carried out in the south west by Alba to date. They have done some initial exploratory work and made a preliminary announcement on 28th. February 2008.
Why is this an interesting play? Firstly, it is very high risk. They only have 4 months of money left so either dilution is on the way, a take over or they will fold. They have not done, as far as I am aware, any detailed exploration work. I strongly suspect they are some years away from a bankable feasibility study on any of their licenses. So keep all of that in mind when drawing your conclusions.

I think it is very significant that both Regency Mines and Starvest put more money into Alba recently and that the directors accepted shares in lieu of monies outstanding. You do not invest more money in a company and you don’t take shares in lieu of payment if you don’t think the company is on to something. I think the Forte Energy and Areva JV in the north will open up that region. The south-west is accessible and has good transport links. Alba merely need to raise funds to progress their work in both of their areas.

I think this is a very good long term investment at the current share price. You will be getting in at the basement level. If you are patient and prepared to wait this has a potentially very significant upside. 

Best entry point? When Alba announce funding, which, in my opinion, will happen within the next 4 – 8 weeks. I expect the share price to slowly move north in the meantime.

This is very high risk. 


A few more titbits :

 A mineral exploration company whose principle project is the Arthrath Nickel-Copper Project in Scotland which has been drill tested in the past by others and is thought to have significant potential. Encouraging results from a 173 metre deep diamond drill hole in its Limerick licence in Ireland, has led the board to seek a joint venture partner for this licence. Essentially this looks as though it might form a useful quoted shell company which Regency might spin some interests off into sometime in the future.

 Teck will spend $400,000 on exploration over a four year period to earn its stake in the assets.
Shares in micro-cap explorer Alba Mineral Resources (LON:ALBA) shot up over 20 per cent today after it sealed an exploration joint venture with Canadian mining firm Teck Resources (TSE:TCK).
Through the deal Teck has an option to acquire a 75 per cent stake in Alba’s zinc and lead exploration assets in the Limerick basin, in county Limerick, Ireland.
Teck will spend $400,000 on exploration over a four year period to earn its stake in the assets.
Initial exploration work will begin next year with ground geophysics and soil geochemistry programmes. Alba said that a diamond drilling may also be possible next year.
On AIM this morning Alba shares gained 0.115p, about 20 per cent, to trade at 0.69p a share. At the current market price the company is worth £600,000.
Ireland hosts Europe’s largest zinc mine, the Tara mine which is operated by Swedish firm Boliden. Approximately 2.6 million tonnes of zinc and lead concentrate is produced at the Tara mine each year. The mine is located near Navan, county Meath.
There is notable interest in zinc projects in Limerick at the moment and Teck is already developing the nearby Stonepark project alongside Connemara Mining (LON:CON).
Additionally Xstrata is also developing a mine in Limerick. Earlier this year the FTSE100 constituent bought out its AIM-listed joint venture partner Minco (LON:MIO) to take full control of the Pallas Green project.
The deal in July saw Minco sell its 23.6 per cent stake in the project for US$19.4 million.

   All considered ,our links with RGM / RRR , are due to go solar powered .

     gla concerned
Profit with patience ,

     19/07/14 . Yes , I have left this one behind why . I am not happy holding onto oil drillers . Despite being in the UK .
Good luck all that decide otherwise .
             And May

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