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29 May 2019 10:15
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company
29 May 2019
Armadale Capital Plc (‘Armadale’ or ‘the Company’)
Fast-tracking Commercialisation Plans for the Mahenge Liandu Graphite Project
Armadale Capital plc (LON: ACP) the AIM quoted investment company focused on natural resource projects in Africa, is accelerating plans to commercialise its Mahenge Liandu Graphite Project (“Mahenge Liandu” or the “Project”) in Tanzania ahead of the anticipated completion of the Definitive Feasibility Study scheduled for Q4 2019 (“DFS”).
Highlights:
Key meetings with current / prospective Chinese off-take and project finance partners are scheduled for early June. The intention is to progress with binding agreements as part of the Board’s intent to accelerate commercialisation plans Continue a thorough review of graphite plant design with a capacity of 400 Kilo-Tonnes Per Annum (‘ktpa’) progressing with experienced Chinese partners to ensure highly optimal and efficient facility The Mahenge Liandu DFS remains on track for completion by year end and will now incorporate current engineering, procurement and construction (“EPC”) pricing of the plant A graphite resource update is underway, which incorporates positive results of infill drilling, and targeted to complete by end-June 2019 Rigorous testing of ground water suitability for general use at the mine and in the processing circuit is nearing finalisation Incremental metallurgical test-work on fresh samples from Mahenge Liandu is underway in Perth, Australia. These incorporate the production of high purity concentrates to maximise the value of the resource Active local community engagement continuing including extensive local school and well-being services initiativesNick Johansen Director of Armadale said: “Looking beyond the completion of the DFS, which is targeted for year-end, the Board is now focused on fast-tracking the various work streams critical to bringing the Mahenge Liandu Graphite Project into commercial production.
“Our most important task is to ensure that a high-purity graphite product, which attracts a material price premium, can be consistently produced. This will deliver greater visibility of the true value of the Project to our potential Chinese partners which will in turn further support the significant progress being made to sign binding off-take and project finance agreements as soon as practical.
“In tandem, the team are finessing details for the processing plant, which has an initial capacity of 400ktpa, and at the same time are ensuring ground-water suitability at site. Most importantly, we are ensuring our traction with the local community at Mahenge Liandu remains strong, as their ongoing support is critical to commissioning the Project.
“We look forward to providing shareholders with further regular updates as the Board moves to fast-track efforts towards transitioning from explorer towards emerging miner.”
FURTHER INFORMATION
Product Marketing and Quality
Key members of Armadale’s management team will be holding meetings with current / prospective Chinese parties in early June to progress securing binding off-take and project funding agreements, as part of the Board’s plans to accelerate commercialisation of the Mahenge Liandu Graphite Project. Securing these agreements will validate the Project and mark the start of Armadale’s transition from graphite explorer to emerging miner.
As part of this process, test-work underway at Bureau Veritas’ facility in Perth, Australia, is focused on maximising the quality of the graphite product, with an increased emphasis on enhancing purity levels. Specifically, the test-work is aimed at producing higher levels of purity for a certain volume of output.
Previous results from the region confirm the potential to produce high value produce from Mahenge graphite deposits. Consequently, results from the test-work programme will be used in the plant design being progressed by a leading Chinese group, which has provided an update on EPC pricing that will now be factored into the Mahenge Liandu DFS.
Resource Update
The Company is fast-tracking work on the graphite resource update, incorporating the latest topographic survey data and most recent round of reverse circulation and diamond drilling. The drilling programme is focused on infill drilling existing areas, so that graphite mineralisation can be more accurately modelled. The results of the update will be used in the mine planning phase of the DFS.
Water Quality Test-work
An important cost saving development for when mining operations commence will be the ability to use ground water rather than securing it from third-party sources. As such, water samples from bore-holes around the proposed mining site have been collected for testing to ensure suitability during mine construction and in the process plant.
Community Engagement
Armadale’s team has increased engagement work with local community groups by donating food and necessary supplies to schools and well-being services.
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**
For further information, please visit the Company’s website www.armadalecapitalplc.com, follow Armadale on Twitter @ArmadaleCapital or contact:
| Enquiries: | |||
| Armadale Capital Plc Paul Johnson, Non-Executive Director (UK) Tim Jones, Company Secretary | +44 (0) 20 7236 1177 | ||
| Nomad and broker: finnCap Ltd Christopher Raggett / Max Bullen-Smith | +44 (0) 20 7220 0500 | ||
| Joint Broker: SVS Securities Tom Curran / Ben Tadd | +44 (0) 20 3700 0093 | ||
| Press Relations: St Brides Partners Ltd Isabel de Salis / Juliet Earl | +44 (0) 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 Indicated and inferred mineral resource estimate of 51.1Mt @ 9.3% TGC, making it 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190529005400/en/
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