Alba Mineral Resources, the AIM-listed stock has acquired a 49% interest in Gold Mines of Wales, the owner of the Clogau Gold Project situated within the Dolgellau Gold Belt in Wales.
The project comprises the Clogau Gold Mine and, according to Alba, includes a large number of highly prospective gold targets and former gold workings within a total option area of 106.94 km².
The Dolgellau Gold Belt has produced by far the most of any region within the UK. Most of this gold has been exploited from the historic Clogau-St David's mine that lies within the area.
Alba's believes there is a high potential to find unworked veins containing gold mineralisation of similar grade to that known in historic mines in the area.
The focus will be on bringing the Clogau Gold Mine back into production and also making a push into the regional exploration of the wider project area.
Price of Welsh gold
Welsh Gold bullion is potentially worth between three and five times the spot gold price, which further enhances the attractiveness of the project.
The British Royal Family has been using Welsh Gold to create their wedding rings for about a century.
Commenting on the agreement, George Frangeskides, Alba's Executive Chairman, commented:"The opportunity presented by this project is pretty unique - high grade gold in the heart of the UK, the fact that Welsh gold attracts a significant premium over spot rates, the historic connections of Welsh gold with the heritage of the United Kingdom, the potential for finding more gold in the vastly under-explored exploration ground - all these are factors which together make a strong case for investment."