Last checked at 25 Jul 2016 07:00
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company
25 July 2016
Armadale Capital Plc (‘Armadale’ or ‘the Company’)
EM Survey Defines Multiple Drill Targets at Mahenge Liandu Graphite Project, Tanzania
Armadale, the AIM quoted investment company focused on natural resource projects, is pleased to announce that multiple conductive targets have been identified at the Mahenge Liandu Graphite Project in south east Tanzania (‘Mahenge Liandu’ or ‘the Project’). This follows Electromagnetic (‘EM’) surveys conducted at the Project as part of preparations for drilling, which is targeted to commence in approximately 6-8 weeks. The Project is 100% owned by Armadale.
EM Survey Results
EM surveys completed at the Liandu Graphite Project with numerous conductive targets identified over a strike length of 2.6km at the primary Liandu Prospect Survey area expanded to include a second zone of graphite schist unit, which was mapped to the west of the previously known mineralisation – this western zone has an EM anomaly with a 3.7km strike length, which remains open to the south Outcropping mineralisation in this new area was visually observed to have similar grades to the primary Liandu Prospect. Figure 1 shows the EM survey results, which shows distinct zones of high conductivity in pink and redExploration Programme Update
Geological mapping is ongoing at the Project and the design of the drilling programme is now well advanced Discussions with drilling companies to undertake the Reverse Circulation and diamond drilling programme are underway Drilling planned to commence in 6-8 weeks with an initial focus on the northern portion of the Liandu ProspectWilliam Frewen, Chairman of Armadale said, “Having recently completed the acquisition of Mahenge Liandu, we are delighted to have already identified prospective targets for drilling, underpinning our fast paced development strategy. Recent rock chip sampling has highlighted high grade graphite mineralisation of up to 33.8% Total Graphite Content (‘TGC’), which supports recent drill results of 60m @ 10.7% TGC, including 24m @ 12.9% TGC and 5m @ 21.5% TGC, and we are delighted that this EM survey increases our confidence in the resource potential of the Project. With a strike length of 2.6km identified at the primary Liandu Prospect, which remains open, and a further mineralised zone identified to the west of this Prospect, which has a 3.7km strike length that again remains open, we have identified strong targets for follow-up drilling. We are now focussed on finalising our drill programme in order to further define the resource potential. This is expected to start in 6-8 weeks and will initially focus on the Liandu Prospect. We look forward to updating shareholders with our progress.”
Figure 1 Results of Liandu Project EM survey – see website for full PDF www.armadalecapitalplc.com
Further Information on Mahenge Liandu
The Mahenge Liandu Project is located in the Ulanga District in south east Tanzania approximately 300km south west of Morogoro, and 10km from the town Mahenge. High grade graphite mineralisation of up to 33.8% Total Graphite Content (‘TGC’) has been demonstrated through analysis of rock chip samples taken from Mahenge Liandu in June 2016. Previous drilling has also confirmed high-grade mineralisation from surface, with results including 60m @ 10.7% TGC, including 24m @ 12.9% TGC and 5m @ 21.5% TGC. The samples were taken from graphite schist outcrops over a 1.5km of strike that was mapped by the previous owner surrounding the initial discovery holes.
The area is highly prospective for graphite with Mahenge Liandu located immediately to the east of Kibaran Resources (ASX:KNL) (‘Kibaran’) Epanko Project, where Kibaran completed a bankable feasibility study (‘BFS’) in July 2015, with the following key findings:
Proven and Probable Ore Reserves of 10.9Mt at 8.6% TGC Annual EBITDA of US$33.6m for 15 years Revenue Price US$1,466/t of concentrate, opex FOB Dar es Salaam $570/t Metallurgical Results: 85.7% of distribution > than 106 micron, carbon conc. of 96.3% TGCBlack Rock Mining (ASX:BKT) (‘Black Rock’) Mahenge Project is also situated only 1km north-west of Armadale’s Mahenge Liandu Project and has a global resource of 131Mt at 7.9% TGC (including 38Mt at 10.2% TGC or 16.6 Mt at 11.1% TGC). Black Rock has delineated approximately 80% of their resources in eight months demonstrating the opportunity to add significant value to the Liandu Project in a short time frame. On 22 March 2016 Black Rock announced the results of an Independent Scoping Study with:
52,000 tpa graphite concentrate mining operation (25 year mine life); at cash costs of US$458/t; and a sales price of US$1,236/t (FOB Dar es Salaam).Competent Person statement
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.
This announcement contains inside information.
**ENDS**
| Enquiries: | |
| Armadale Capital Plc Charles Zorab, Company Secretary | +44 20 7233 1462 |
| 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 Charlotte Heap / Susie Geliher | +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. The project is located in a highly prospective region with proven coarse flake, high grade graphite resources – ASX listed Kibaran Resources Ltd (ASX:KNL) and Black Rock Mining Limited (ASX:BKT) have both identified and are developing significant proven and valuable graphite projects immediately adjacent to Liandu. A mineralised trend about 1.6km in strike length and up to 500m wide has been identified at the project, which remains open at depth. Armadale geologists have mapped and sampled the graphite schist, with results from seven previous samples ranging from 12.8% - 24.0% Total Graphite Content (‘TGC’). Exploration drilling completed at the project in December 2015 has also further confirmed the mineral potential of licence area, with results including 10m at 6.54% TGC, 24m at 12.9% TGC and 5m at 21.5% TGC. Armadale is targeting a Maiden Resource estimation in late 2016.
Armadale is also developing of the Mpokoto Gold project in the Democratic Republic of the Congo, in which it owns an 80% interest. Mpokoto has a current Total Mineral Resource of 678,000 oz gold (‘Au’) from 14.58 million tonnes (‘Mt’) @ 1.45g/t Au at a cut-off grade of 0.5g/t. The Company has recently announced the results of a Feasibility Study for Mpokoto which demonstrated a pre-tax net present value of US$43m based upon a discount rate of 5% and a gold price of US$1,250/oz. The Project is subject to four Mining Licences which are valid for an initial term of 30 years from 30 September 2014.
Armadale also currently holds approximately a 30% interest in Mine Restoration Investments Ltd, a South African listed company, as well as a number of other quoted investments.
More information can be found on the website www.armadalecapitalplc.com.
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