Last checked at 31 Mar 2014 07:00
Armadale Capital Plc (‘Armadale’ or ‘the Company’)Mining Licence Application & Delivery of Scoping Study
Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce that the mining licence application has been completed and received the final results of the Scoping Study for its Mpokoto Gold Project in the Katanga Province of the Democratic Republic of Congo (‘Mpokoto’ or ‘the Project’), which has a current Total Mineral Resource of 510,000oz gold (‘Au’) from 11.2 million tonnes (‘Mt’) @ 1.42g/t Au at a cut-off grade of 0.5g/t.
The application for a mining licence for the Mpokoto Gold Project has been completed and approved for submission to the Government of the Democratic Republic of Congo. The licence application required the completion of several studies including an initial economic assessment, mine plan and related metallurgical and environmental reports. The Company anticipates that the application may take up to six months to be processed but will continue to develop the Project in the meantime.
In addition, Armadale has received the final Scoping Study from Bara Consulting Pty Limited. The Scoping Study demonstrates the Mpokoto Gold Project is a compelling gold development project that provides strong returns and is resilient at lower gold prices. The results are now being reviewed by the Company and will be released in detail to the market on Monday 7 April 2014.
An investor/analyst conference call will be held in conjunction with the release of the results of the Scoping Study – to participate in the call please email info@sbmf.co.uk for registration details.
Justin Lewis, Director of Armadale, said, “Development at Mpokoto continues at pace as we move through the gears towards commercial gold production. Submission of the mining licence application and the delivery of a positive Scoping Study are crucial milestones in achieving our strategic goals and unlocking the value of this highly prospective and commercially attractive low capex and low opex gold project.”
Mpokoto Gold Project Development
Mpokoto is located in the western part of the Katanga Province approximately 250km west of the establish mining district around Kolwezi in the Democratic Republic of Congo, and approximately 25km from the Zambian border. The area is highly prospective, with local operators including Ivanplats Limited and Glencore Plc and since 1998, approximately US$20 million was spent on gold exploration at the Project.
Since completing an upgrade to the geological model at the end of 2013, which led to a 35% increase in the overall resource to 510,000oz Au the Company has progressed with a number of further studies, including an initial economic assessment, mine plan and related metallurgical and environmental reports. These reports have supported the completion the completion of Mining Licence Application and Scoping Study.
Results received from the initial metallurgical studies undertaken at the end of last year suggest that the weathered and oxide proportions of the ore are amenable to gravity separation and concentration. In particular the tests suggest that recoveries of up to 80% are achievable from this process. The advantage of this process is that as a result of the limited use of chemicals, such as cyanide, the overall cost of processing the ore is considerably reduced, with Armadale now targeting overall operating costs of less than US$650 per oz of gold produced for Phase 1 targeting the weathered ore. This will lead to a significant uplift in the overall value of the Project.
In addition to development work, the Company will also continue to assess the Resource upside potential of the Project, which has a total Exploration Target of between 10 and 15Mt at 1.2g/t-1.5g/t Au. The quantity and grade of the Exploration Target is conceptual and there has been insufficient exploration to define a Mineral Resource.
The potential for additional resources and reserves is strong. Should this target mineralisation be converted to Inferred and Indicated resources and then to reserves, it is likely that the Project throughput rate can be substantially upgraded. Resource delineation drilling programmes are planned to test the target potential.
**ENDS**
Enquiries: Company Justin Lewis, Director +44 207 233 1462Charles Zorab, Investor Relations
Nomad and broker: finnCap Limited Stuart Andrews/Christopher Raggett +44 207 220 0500
Press relations: St Brides Media & Finance Ltd. Susie Geliher/Charlotte Heap +44 207 236 1177
Notes
Armadale Capital Plc is focussed on investing in and developing a portfolio of investments, targeting the natural resources and/or infrastructure sectors. 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.
Armadale currently holds approximately a 40% interest in Mine Restoration Investments Ltd, a South African listed company, which aims to develop profitable operations in South Africa through the briquetting and sale of coal fines in KwaZulu Natal and an acid mine drainage project in the Witwatersrand basins. It has full ownership of a company which holds the right to an 80% stake in the Mpokoto Gold project in the Democratic Republic of the Congo. This is a gold deposit with 510,000 oz of JORC defined gold resource.
More information can be found on the website www.armadalecapitalplc.com.
Copyright Business Wire 2014