Progress Update: Mahenge Liandu Graphite Projec...

Progress Update: Mahenge Liandu Graphite Project Feasibility Study

Armadale Capital Plc

Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company

29 August 2018

Armadale Capital Plc (‘Armadale’ or ‘the Company’)

Progress Update: Mahenge Liandu Graphite Project Feasibility Study

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce significant progress on the 2018 field work programme underway at its Mahenge Liandu Graphite Project in Tanzania (‘Mahenge Liandu’ or the ‘Project’) ahead of an anticipated decision to mine in early 2019.

Overview

• Diamond drilling programme completed with eight holes for a total of 489m
• All holes intersecting wide intervals of high grade mineralisation from surface with up to 67m thickness
• Drilling focused on the proposed initial mining area and the results of the drilling will be incorporated into the mine planning
• Diamond core to be used to validate the reverse circulation (‘RC’) drilling and to provide core samples to allow for representative concentrate samples for marketing to prospective off-take partners
• 10km² topographic survey completed covering the area of the proposed mining lease
• Field work for Environmental and Social baseline surveys now completed with environmental impact assessment (EIA) and relocation action plan (RAP) and valuation survey expected to be submitted in late September
• RC drill programme expected to be completed by mid-September following delays due to a rig breakdown
• RC drilling targeting the upgrade of the current JORC Resource of 51.1Mt at 9.3% Total Graphitic Carbon (‘TGC’) to Probable and Proven Reserves

Diamond Drilling Results

The diamond drilling programme has now been completed with eight holes for a total of 489m drilled. All holes intersected mineralisation from surface over wide thicknesses averaging 55m and up to 67m. Excellent core recovery was achieved and the mineralisation correlates well to the results of the RC drilling programme conducted in 2017. The cores will be used to produce representative graphite concentrates to advance the product marketing as well as to refine the process flowsheet.

Hole ID		Easting		Northing		Azi/dip		Depth		Min from		Min to		Min thickness
LDDD0001		251658		9035187		325/-60		65.3		0		58		58
LDDD0002		251816		9035236		325/-60		65.4		0		52		52
LDDD0003		251746		9035387		325/-60		65.6		0		65.6		65.6
LDDD0004		251836		9035442		325/-60		63.5		0		48		48
LDDD0005		251793		9035423		325/-60		59.7		0		54		54
LDDD0006		251787		9035317		325/-60		70.0		0		67		67
LDDD0007		251851		9035283		325/-60		50.0		0		48		48
LDDD0008		251868		9035372		325/-60		50.0		0		45		45

Table 1 Diamond drilling summary

Nick Johansen, Director of Armadale said, “I am pleased to report that all aspects of our development work at Mahenge Liandu are progressing encouragingly and we continue to look forward to making a decision to mine early on in the new year.

“These latest diamond drill results, which highlighted high grade mineralisation in every hole, over wide intervals from surface with up to 67m thickness, are particularly pleasing and further reinforce our understanding of the geology of the Mahenge Liandu Project. The area drilled covers our proposed initial mining area and the results of the drilling will be incorporated into our mine planning over the coming months.

“Drilling continues on site, however the bulk of our activities are now focussed on the completion of the EIA, relocation plan and valuation survey – all critical components of our development plan as we target first production within 12-18 months.

“I look forward to reporting the completion of our RC programme and delivery of our relocation plan and ancillary surveys in the coming weeks.”

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

**ENDS**

For further information, please visit the Company’s website www.armadalecapitalplc.com, follow Armadale on Twitter @ArmadaleCapital or contact:

Enquiries:
Armadale Capital Plc Tim Jones, Company Secretary		[phone]
Nomad and broker: finnCap Ltd Christopher Raggett / Simon Hicks		[phone]
Joint Broker: SVS Securities Tom Curran / Ben Tadd		[phone]
Press Relations: St Brides Partners Ltd Susie Geliher / Charlotte Page		[phone]

Notes

Armadale Capital Plc is focused on investing in and developing a portfolio of investments, targeting the natural resources and/or infrastructure sectors in Africa. The Company, led by a team with operational experience and a strong track record in Africa, has a strategy of identifying high growth businesses where it can take an active role in their advancement.

The Company owns the Mahenge Liandu graphite project in south-east Tanzania, which is now its main focus. The Project is located in a highly prospective region with a high-grade JORC compliant inferred mineral resource estimate of 51.1Mt @ 9.3% TGC. Marking the project one of the largest high-grade resources in Tanzania, and work to date has demonstrated Mahenge Liandu’s potential as a commercially viable deposit with significant tonnage, high-grade coarse flake and near surface mineralisation (implying a low strip ratio) contained within one contiguous ore body.

Other assets Armadale has an interest in include the Mpokoto Gold project in the Democratic Republic of Congo and a portfolio of quoted investments.

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