RNS - page 17 Feb 2018 10:15
Mahenge Liandu Resource Upgrade to 51.1Mt at 9.3% TGC
With 75% now in the Indicated Category
Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce a Resource upgrade at the Mahenge Liandu Graphite Project in Tanzania (�Mahenge Liandu�).
Overview
Infill drilling of the resource at Mahenge Liandu undertaken to upgrade the category from Inferred to Indicated to allow for feasibility studies, mine planning and economics
Resource successfully upgraded to 51.1Mt at 9.3% Total Graphitic Carbon (�TGC�), including 38.7Mt Indicted at 9.3% and 12.4Mt at 9.1% TGC
Upgrade represents a 25% increase from the previous 40.9Mt inferred resource at 9.41% TGC
Over 75% of the Resource now in the Indicated category
TGC grade and quantum of indicated resource confirms Mahenge Liandu as one of the highest-grade graphite deposits in Tanzania and the rest of the world
Areas of high-grade, near surface mineralisation have been confirmed, allowing a staged approach to development, which lowers the capital development and operating costs early in the mine life
Test work completed to date has confirmed that premium quality, high purity concentrates can be produced using a conventional flotation circuit
A diamond drilling programme is planned to commence at the conclusion of the wet season (March / April 2018) to provide samples for more extensive metallurgical test work
The deposit remains open to the north south and down dip, meaning there is significant potential to increase the resource further, with further drilling planned for later in 2018
Mine planning has now commenced and the results from this and the updated resource will be incorporated in the Scoping Study being carried out by experienced engineering consultancy BatteryLimits, which is currently underway � results of the Scoping Study are expected by the end of Q1 2018
Combination of a number of key factors � high overall TGC grade, sizable indicated resource, ability to utilise convention flotation circuit to produce premium quality product and near surface mineralisation with super high grade TGC (see below) � all point to the ability to produce an extremely robust initial scoping study which will provide first pass project economics