Shares in micro cap explorer Alba Mineral Resources shot up 40% after it sealed an exploration joint venture with Canadian mining firm Teck Resources.

Through the deal Teck has an option to acquire 75% stake in Alba’s zinc and lead exploration assets in the Limerick basin in county Limerick, Ireland. Teck will spend USD 400,000 on exploration over 4 year period to earn its stake in the assets. Initial exploration work will begin next year with ground geophysics and soil geochemistry programs.

Alba said that a diamond drilling may also be possible next year. On AIM this morning Alba shares gained 0.225p about 20% to trade at 0.8p a share. At the current market price the company is worth EUR 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.

Additionally Xstrata is also developing a mine in Limerick. Earlier this year the FTSE100 constituent bought out its AIM listed JV partner Minco to take full control of the Pallas Green project. The deal in July saw Minco sell its 23.6% stake in the project for USD 19.4 million.

(Sourced from www.proactiveinvestors.co.uk)