Last checked at 8 Nov 2016 07:00
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company
8 November 2016
Armadale Capital Plc (‘Armadale’ or ‘the Company’)
Initial assay results confirm high-grade graphite mineralisation up to 26% TGC
Armadale, the AIM quoted investment company focused on natural resource projects, is pleased to announce initial assay results with high-grade graphite mineralisation up to 26% Total Graphitic Carbon (‘TGC’) commencing from or near the surface at the Mahenge Liandu Graphite Project in Tanzania (‘Mahenge Liandu’ or ‘the Project’).
Summary:
Initial assay results returned from the 2016 drilling campaign across a range of intervals, up to 47m in width, including: LDRC0004 42m @ 10.2% TGC from 1m including 8m @14.5% from 6m LDRC0007 32m @ 9.3% TGC including 4m @ 22.4 $ TGC and 1m @26.1% TGC LDRC000847m @ 7.4% TGC including 5m @ 14.9% from 3m and 5m @ 15.5% from 42m; Grades are consistent with trends evident from the 2015 assay results, which encompassed 60m @ 10.7% TGC including 24m @ 12.9% TGC and 5m @ 21.5% TGC; The remaining assay results for 2016 will be finalised and announced shortly; Further feedback on JORC modelling, due for completion by the end of Q4 2016, continues to indicate a substantial graphite resource; and, Metallurgical test-work to ascertain initial purity and flake size distribution of graphite concentrate is ongoing.William Frewen, Chairman of Armadale said:
“These initial assay results are very promising. Of particular importance is the confirmation of near surface high-grade graphite mineralisation at up to 26% TGC at intervals ranging from 1m up to 47m. The wide intervals and high grade nature of the results are encouraging and should positively impact the extraction costs given the close proximity to the surface of the mineralisation. The Board is confident the remaining assay results will further reinforce the Project’s upside potential, which will in turn be further bolstered by ongoing JORC modelling. With demand for natural graphite forecast to accelerate significantly as new lithium-ion battery giga-factories come on stream, Armadale is ideally positioned to capitalise on this compelling supply-demand market fundamentals.
“The Board is delighted with these results, which further reinforces the potential for commercial viability of the Mahenge Liandu graphite project, against a highly favourable macro outlook.”
Assay Results Demonstrate High Quality Graphite Mineralisation
The initial assay results demonstrate Mahenge Liandu has a high-quality, sizeable graphite resource that should meet the strict quality requirements demanded by lithium-ion battery manufacturers. The assay results have confirmed high-grade graphite mineralisation over wide intercepts. It should be noted that Tanzanian graphite usually liberates from a simple crushing and flotation process, without the use of expensive and toxic industrial chemicals. This is beneficial as downstream users are increasingly showing a preference for graphite feedstock which is more environmentally friendly.
Armadale’s team in Tanzania has undertaken a preliminary review of infrastructure and logistical requirements for mining operations to commence and to get product to market. The findings for Mahenge Liandu are encouraging and include:
1) Mains power supply is within 5km;
2) Ground water is plentiful;
3) The Project is circa 80km by road to a central rail hub at Ifakara then 320km direct to the deep sea port at Dar es Salaam; and
4) Labour and materials available within 10km at Mahenge township.
Further Information on Mahenge Liandu
The Mahenge Liandu project is located in the Ulanga District in south east Tanzania, which is approximately 300km south west of Morogoro and 10km from the town Mahenge. High grade graphite mineralisation of up to 33.8% TGC has been demonstrated through analysis of rock-chip samples taken from Mahenge Liandu in June 2016. The samples were taken from graphite schist outcrops over 2km in strike length identified at the Project, which remains open at depth. Previous drilling in December 2015 indicated high-grade mineralisation from the surface, with results including 60m @ 10.7% TGC including 24m @ 12.9% TGC and 5m @ 21.5% TGC.
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.
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 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 Page / 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, which is now its main focus. The project is located in a highly prospective region with proven coarse flake, high grade graphite.
Other assets Armadale has an interest in include the Mpokoto Gold project in the DRC and a portfolio of quoted investments.
More information can be found on the website www.armadalecapitalplc.com.
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