(Alliance News) - Armadale Capital PLC on Tuesday unveiled an improving mining plan that would double production at the Mahenge Liandu graphite project in Tanzania.
The detailed mining plan would see 400,000 tonnes of ore mined in the first two years, rising to 500,000 tonnes in the following two years, before then reaching 1.0 million tonnes at year five.
The project would produce an average of 49,000 tonnes a year of graphite products over 32 years.
Armadale said the increased production would "significantly transform" the feasibility study which is currently being finalised for the project.
"We have long held confidence in the enormous commercial potential and economic value of our 100% owned Mahenge graphite project and as we near completion of the feasibility study the exceptional results received during the course of additional studies continue to reinforce this view," said Armadale's Chair Nick Johansen.
"These results are expected to make a positive impact upon our feasibility study, which is nearing completion, and we look forward to updating further upon this in the near future."
Armadale shares closed 12% higher on Tuesday in London at a price of 2.40 pence each.
By George Collard; georgecollard@alliancenews.com
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Armadale Capital (ACP)