(Alliance News) - Armadale Capital PLC on Friday said the definitive feasibility study for the Mahenge Liandu graphite project in Tanzania is on track to complete in the first quarter of the year.
Shares in the natural resources project investor were up 5.7% at 3.22 pence in London in morning trading.
A detailed mine plan is almost complete and will be included in the study. This plan involves targeting high-grade graphite mineralisation near the surface at Mahenge Liandu for the first three to five years of production, with the goal of maximising returns in the first years of operations.
Also included in the study will be a ramp up, starting after the fourth year, to 1 million tonnes per annum from 400,000 tonnes per annum to keep up with an expected increase in graphite demand.
The site location for the run-of-mine pad has been finalised, along with that of the process plant, tailing storage facilities, and crushing circuit. A new access road from the site to the town of Mahenge has also been marked out, which will help with the mine's construction and production.
A "local well-established Tanzanian contractor" will truck the product off for shipping, and logistics for the operation have been costed.
The work programme results will form the final part of the definitive feasibility study, which is on track for completion in March.
Armadale director, Steve Mahede, has also met recently "with senior Tanzanian officials" and emerged "confident that developing the mining projects through to production was a major priority to generate export earnings as well as positive economic multiplier benefits".
The company also said it is "commencing post-[definitive feasibility study] era work programmes, with teams working on road access, production bores, ongoing commercialisation and project funding discussions with funding partners."
Chair Nick Johansen said: "Refinements to our resource modelling and mine plan from the scoping study have increased our confidence that the project is going to be a low cost, long life operation.
"We look forward to sharing these key value metrics within the next month as we finalise the [definitive feasibility study], results for which we know are eagerly anticipated. I would like to thank shareholders for their patience in this regard and give my assurance that finalising this study is our primary objective. We will then look to accelerate commercialisation and funding initiatives with our partners to ensure we remain on track with our fast-paced growth plans."
By Anna Farley; annafarley@alliancenews.com
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Armadale Capital (ACP)