Last checked at 19 Jul 2017 07:00
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company
Armadale Capital Plc (‘Armadale’ or ‘the Company’)
Exploration Update at Mahenge Liandu Graphite Project, Tanzania
Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to provide an update on exploration activities at its Mahenge Liandu Graphite Project in Tanzania (‘the Project’ or ‘Mahenge Liandu’).
Highlights:
Two-phase development plan defined at Mahenge Liandu – Stage One to focus on processing higher grade mineralisation before a later expansion to take advantage of the large size of the deposit for Stage Two 2,500m Reverse Circulation (‘RC’) drill programme underway – focussed on increasing the current JORC Resource of 40.9Mt at 9.41% Total Graphitic Content (‘TGC’) and defining zones of +10% TGC near surface mineralisation Drilling follows completion of road access and construction of 25 drill pads Road access has exposed wide zones up to 110m of graphite mineralisation near surface Identified and met with a number of potential offtake partners in China – product samples from recent bulk sampling programme to be provided for test workNick Johansen, Director of Armadale said, “With one of the highest-grade graphite resources in Tanzania, capable of producing a range of high quality graphite products in demand by a number of rapidly growing markets, we are well on the way to establishing the commercial viability of Mahenge Liandu. Work is now focussed on building upon these results in order to convert this potential into tangible value and deliver the optimal route to production. Through recent field work we have identified wide zones of mineralisation and despite delays due to an extended rainy season, drilling is now well underway to increase both the quantum and confidence of the current resource. This drill programme will also help us to isolate areas of particularly high grade mineralisation, which will then provide a priority focus for us going forward to advance the Project into production.
“Current field work follows the successful completion of a recent bulk sampling programme, the results of which will be sent to a number of potential offtake partners identified in China. There is strong and growing interest for high quality graphite products in China, in particular for larger flake size graphite suitable for the expandable graphite market, which includes battery manufacturers. We believe our product is ideally suited for this market and are delighted to be sending graphite samples to a range of graphite industry participants including graphite consumers, engineering, procurement and construction providers and funding institutions for testing.”
Further Information
The key focus of the RC drilling programme is to target near surface zones of +10% TGC mineralisation identified in the 2016 drilling programme. The objective of the drilling is to define 3-5Mt of higher grade mineralisation allowing the Company to develop the Project in two stages with an initial focus on processing higher grade mineralisation before a later expansion to take advantage of the large size of the deposit. Results of the drilling will be released to the market in due course.
An initial visit to China by company representatives to a range of graphite industry participants, including graphite consumers, engineering, procurement, and construction providers and funding institutions was successful, with requests received for samples to be provided for test work. Further updates regarding offtake discussions will be made when appropriate.
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**
| Enquiries: | |||
| Armadale Capital Plc Nick Johansen | +44 20 7236 1177 | ||
| 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 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 40.9Mt @ 9.41% TGC. At least 32Mt of this resource has an average grade of 10.47% TGC, 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.
More information can be found on the website www.armadalecapitalplc.com
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