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Armadale Capital Plc (ACP)

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Tuesday 07 November, 2017

Armadale Capital Plc

Excellent Drilling Results Continue at Mahenge Liandu

Excellent Drilling Results Continue at Mahenge Liandu

Armadale Capital Plc

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

Excellent Drilling Results Continue

at Mahenge Liandu

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce the results of a recent 1,500m 28-hole reverse circulation drill programme completed at the Mahenge Liandu Graphite Project in Tanzania (‘Mahenge Liandu’).

Overview

  • Wide high-grade mineralisation consistently intersected from shallow, near surface depths, with thick graphite intersected in 24 of the 28 holes completed
  • Numerous holes returned exceptionally high-grade intercepts, making Mahenge Liandu one of the highest-grade graphite deposits in Tanzania, with results including:
    • 6m @ 12.8% Total Graphitic Content (‘TGC’) from surface
    • 14m @ 16.7% TGC from 2m
    • 15m @ 14% TGC from surface
    • 11m @ 14.8% TGC from 15m
    • 10m @ 18.5% TGC from 16m
  • Drill results expected to support an increase in the quantum and confidence category of the maiden JORC Resource estimate of 40.9Mt at 9.41% TGC – resource update expected by the end of the year
  • Significant further upside remains - drilling focused on 1,200m strike length, however the deposit remains open in most directions
  • Metallurgical test-work has confirmed the mineralisation responds well to conventional floatation circuits and can produce concentrate purity well above industry benchmarks
  • Definitive Feasibility on track to be completed in Q2 2018 – targeting a 400,000tpa operation with a head grade of 10-15% TGC

Nick Johansen, Director of Armadale said: The current resource is one of the largest high-grade deposits in Tanzania and work to date has demonstrated Mahenge Liandu’s potential as a commercially viable deposit thanks to its significant tonnage, high-grade coarse flake and near surface mineralisation, which is contained within one contiguous ore body. Crucially, we continue to see significant potential within the asset, and the results from the recent drill work are testament to this. With highs of 18.5% TGC and wide zones of mineralisation identified typically averaging 8-10% TGC, we are very excited for the imminent increase in JORC resource, which we expect to be in a position to deliver by the end of the year.”

Feasibility study

The near surface high grade zones confirmed by the current round of drilling points towards cost effective production of a premium graphite product for sale to the market and is further validation of the Company’s two stage development plan. The Company anticipates being able to complete a 400,000tpa feasibility study in Q2 2018 as we continue to develop the world class Mahenge Liandu project through to production. We look forward to further significant updates to the market over the coming months

RC Drilling Programme Assay Results

The drilling was carried out on a 200m by 80m pattern over a strike length of 1,200m with a total of 27 holes completed. The results confirm consistent zones of mineralisation staring from at or near surface typically 8-10% TGC.

Table 1 Graphite Assay Results from the 2017 drilling programme

Hole ID   Easting   Northing   Max Depth   From   To   width   TGC %
LDRC0022 251,673 9,035,201 65 0 58 58 7.4
inc       0 6 6 12.8
inc       51 55 4 15.9
LDRC0023 251,855 9,035,275 51 0 41 41 10.6
inc       10 14 4 14.9
inc       29 33 4 15.5
inc       35 41 6 14.3
LDRC0024 251,821 9,035,352 33 0 27 27 9.1
inc       0 8 8 11.5
LDRC0025 251,887 9,035,209 34 0 28 28 12.3
inc       2 16 14 16.7
LDRC0026 251,785 9,035,419 63 0 46 46 8.2
inc       0 15 15 14
LDRC0027 251,758 9,035,495 63 0 16 16 8.1
and       27 40 13 8
and       43 52 9 8
LDRC0028 251,938 9,035,596 41 0 20 20 9.4
inc       0 13 13 10.6
LDRC0029 251,971 9,035,522 50 7 37 30 9.5
inc       15 26 11 14.8
LDRC0030 251,909 9,035,660 19       NSI
LDRC0031 252,014 9,035,450 63 4 8 4 4.2
and       20 25 5 7.7
and       34 57 23 12.5
inc       46 57 11 17.5
LDRC0032 252,046 9,035,364 57 16 26 10 18.2
and       36 46 10 6.9
LDRC0033 251,726 9,035,576 61 44 54 10 4.3
LDRC0034 251,694 9,035,642 48       NSI
LDRC0035 251,653 9,035,504 74 44 68 24 6.9
inc       58 63 5 14.5
LDRC0036 251,620 9,035,351 33 1 10 9 10.1
LDRC0037 251,642 9,035,283 69 3 15 12 13.8
inc       3 9 6 17.5
and       44 57 13 9.8
LDRC0038 251,588 9,035,433 63 40 53 13 11.4
LDRC0039 251,461 9,035,183 66 25 45 20 10.2
inc       27 36 9 15.8
LDRC0040 251,432 9,035,265 56 16 20 4 8.5
LDRC0041 251,395 9,035,330 79 17 38 21 11.5
inc       26 36 10 15.2
LDRC0042 251,494 9,035,112 60 30 41 11 11.5
inc       36 41 5 14.8
LDRC0043 251,527 9,035,039 33       NSI
LDRC0044 251,566 9,034,969 93 45 86 41 6.8
inc       45 48 3 14.9
LDRC0045 251,600 9,034,897 50       NSI
LDRC0046 251,268 9,035,127 105 3 13 10 17.9
and       20 25 5 14.2
and       34 50 16 6.7
LDRC0047 251,295 9,035,059 58 9 17 8 10.8
and       49 55 6 12
LDRC0048 251,018 9,035,201 20 2 6 4 15.9
LDRC0049 251,357 9,034,984 67 44 52 8 13.5

The information in this announcement that relates to exploration results is based on information compiled by Mr Matt Bull, a competent person, who is a Member of the Australian Institute of Geoscientists. Mr Bull has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a competent person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Bull consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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

Tim Jones, Company Secretary

+44 20 7236 1177
Nomad and broker: finnCap Ltd

Christopher Raggett / Simon Hicks

+44 20 7220 0500
Joint Broker: Beaufort Securities Limited

Jon Belliss

+44 20 7382 8300
Press Relations: St Brides Partners Ltd

Susie Geliher / Charlotte Page

+44 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 inferred mineral resource estimate of 40.9Mt @ 9.41% TGC. At least 32Mt of this resource has an average grade of 10.47% TGC, 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

LEI: 213800495EK876JETD10

Classification: 3.1. Additional regulated information required to be disclosed under the laws of a Member State


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