Armadale Capital Plc

High-Grade Assay Results Demonstrate Commercial Potential of Large Graphite Project

High-Grade Assay Results Demonstrate Commercial Potential of Large Graphite Project

Armadale Capital Plc

 

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

28 August 2019

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

High-Grade Assay Results Further Demonstrate Commercial Potential of Large Graphite Project

Armadale Capital plc (LON: ACP), the AIM quoted investment group focused on natural resource projects in Africa, is delighted to announce further high-grade assay results from its wholly owned Mahenge Liandu Graphite Project in the highly prospective Mahenge region of Tanzania (“Mahenge Liandu” or the “Project”).

The results confirm previously identified areas of extremely high-grade near surface mineralisation that can be targeted for initial mining with positive read across for lower extraction costs and enhanced EBITDA margins. As a result, the Company expects increased production at the Project based on the targeted throughput of 400,000tpa of ore currently being evaluated as part of a Definitive Feasibility Study (“DFS”).

The initial drill results from the first four holes were announced on 25 June 2019 and can be viewed through the following link: https://bit.ly/2JbaDNg.

Highlights:

Nick Johansen Director of Armadale said: “We are delighted with the further exceptionally high-grade assay results, especially as the drill campaign was focused on the initial pit area and has provided data to allow us to define the optimal mine design. The tenor of the mineralisation in this area and the exceptionally high near surface grade is an extremely strong boost for the Project as we move along its development pathway.

“Our work continues at pace as we accelerate the transition from explorer to emerging miner. We believe recent news has demonstrated the enhanced commercial viability of the Mahenge Liandu Project which, with a high-grade JORC compliant indicated and inferred mineral resource estimate of 51.1Mt at 9.3% TGC, is already one of the largest high-grade resources in Tanzania. We look forward to providing further updates as we continue to meet significant milestones in the Project’s development.”

FURTHER INFORMATION

Summary Assay Results Table

Hole ID

Easting

Northing

Depth

Elevation

From

To

Width

Average TGC%

Including

Including

LDRC0054

251,683

9,035,432

46

702

9

35

26

8.8

[email protected]% from 16m

 

LDRC0055

251,851

9,035,548

46

721

0

40

40

6.9

 

LDRC0056

251,876

9,035,486

37

685

0

31

31

11.6

5m @ 22.3% TGC from 3m

14m @ 12.6% TGC from 16m

LDRC0057

251,918

9,035,402

22

650

No Significant Intercepts

LDRC0058

251,946

9,035,342

46

656

0

35

35

13.2

[email protected] 19.8% from 11m

[email protected]% from 13m

LDRC0059

251,978

9,035,267

68

637

24

42

18

13.8

[email protected]% from 36m

 

LDRC0060

252,012

9,035,190

56

630

0

24

24

1.2

 

LDRC0061

251,929

9,035,120

34

585

20

24

4

12.8

 

 

LDRC0062

251,848

9,035,036

65

546

6

15

9

20.6

[email protected]% from 6m

 

20

51

31

7.1

 

LDRC0063

251,511

9,035,343

40

698

0

20

20

10.7

5m @15.7% from 0

 

LDRC0064

251,531

9,035,282

16

677

0

10

10

10.8

[email protected]% from 0m

 

LDRC0065

251,563

9,035,204

34

640

1

21

20

9

[email protected]% from 0m

 

LDRC0066

251,358

9,035,177

102

659

0

7

7

12.8

[email protected]% from 0m

 

12

33

21

7.5

 

 

81

98

17

6.9

 

LDRC0067

251,329

9,035,250

84

710

22

29

8

14.5

[email protected]% from 22m

 

37

56

19

7.1

 

 

64

68

4

6.1

 

Mahenge Liandu Graphite Project, Tanzania

Armadale Capital’s wholly-owned Mahenge Liandu Graphite Project is located in a highly prospective region, with a high-grade JORC compliant indicated and inferred mineral resource estimate announced February 2018 – 51.1Mt at 9.3% TGC. This includes 38.7Mt Indicted at 9.3% and 12.4Mt at 9.1% TGC, making it one of the largest high-grade resources in Tanzania.

The work to date has demonstrated the Project’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.

Currently, Armadale is completing a Definitive Feasibility Study based on the results of a Scoping Study that was completed in March 2018. The study was based on a throughput of 400,000tpa over a 32-year mine life and showed the Project has robust economics and warrants further development.

The Scoping Study verified Mahenge Liandu could produce a coarse flake, high-purity graphite product underpinning a compelling business case to progress commercialisation plans.

The Scoping Study, based on a 400,000tpa throughput, highlighted the following key positive metrics:

There remains significant scope to further improve returns, with staged expansions as the current mine plan is based on circa 25% of the total resource.

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**

Enquiries:

 

Armadale Capital Plc

Paul Johnson, Non-Executive Director (UK)

Tim Jones, Company Secretary

+44 (0) 20 7236 1177

Nomad and broker: FinnCap Ltd

Christopher Raggett / Max Bullen-Smith

+44 (0) 20 7220 0500

Joint Broker: SI Capital Ltd

Nick Emerson

+44 (0) 1483 413500

Press Relations: St Brides Partners Ltd

Isabel de Salis / Juliet Earl

+44 (0) 20 7236 1177

 

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 Indicated and inferred mineral resource estimate of 51.1Mt @ 9.3% TGC, making it 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.

More information can be found on the website www.armadalecapitalplc.com.