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Armadale Capital Plc (ACP)

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Wednesday 29 August, 2018

Armadale Capital Plc

Progress Update: Mahenge Liandu Graphite Project Feasibility Study

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

+44 20 7236 1177
Nomad and broker: finnCap Ltd

Christopher Raggett / Simon Hicks

+44 20 7220 0500
Joint Broker: SVS Securities

Tom Curran / Ben Tadd

+44 20 3700 0093
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 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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