Study at Amitsoq Graphite Project encouraging, says Alba

The AIM-traded resources firm said the remote sensing study was highly encouraging, highlighting several anomalies for a variety of commodities.

There were numerous and continuous graphitic horizons suggested along the strike, and proximal to the Amitsoq graphite mine, Alba said.

"The results from the remote sensing study are highly encouraging for a variety of commodities", said CEO Mike Nott.

"The main commodity emphasis is graphite, and several anomolies suggest numerous and continuous horizons along strike and proximal to the Amitsoq graphite mine", he added.

The iron oxide (FeO) anomalies were coincident with know graphite occurrences at the former Amitsoq graphite mine, the company explained, with two zones containing multiple lenses of interpreted bedded graphite occurring along strike 2.5km and 5.8km northeast of the mine.

Additional FeO anomalies were interpreted to be favourable targets for platinum group metals, with orogenic lode gold and intrusion related copper-zinc mineralisation.

Additionally, there were anomalies identified with geology similar to economic gold mineralisation at the nearby Nalunaq gold mine, where around 340,000 ounces of gold had been produced to date.

Going forward, Nott said the next phase of exploration involved an airborne geophysical survey, followed by the ground checking of coincident alteration and geophysical targets.

"If results are positive, then an exploration drilling programme to estimate the thickness and continuity of the graphite horizons will begin", he concluded.