Armadale Capital Regulatory News (ACP)

5 Jun 2017 07:00

Armadale Capital Plc (‘Armadale’ or ‘the Company’)

Update on 2017 Exploration Programme at Mahenge Liandu Graphite Project

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce an update on the Company’s 2017 exploration programme at its Mahenge Liandu Graphite Project in Tanzania (‘the Project’ or ‘Mahenge Liandu’).

Overview

Drilling contract signed and mobilisation underway ahead of 2,500m drilling programme due to commence at Mahenge Liandu Objective of drilling programme is to increase both the quantum and confidence category of the maiden JORC Resource estimate of 40.9Mt at 9.41% Total Graphitic Content (‘TGC’) Field work ramping up and access roads improved to support 2017 exploration campaign Bulk sampling of mineralisation commenced to produce graphite concentrate for downstream test work – processing and analysis in Perth, Western Australia Concentrates to be sent to potential offtake partners with preliminary discussions underway

Nick Johansen, Director of Armadale said, “Our 2017 exploration programme has now commenced in earnest with the mobilisation of the drill rig and commencement of bulk sampling on site. Although delayed somewhat by an extended rainy season, I am confident that we remain on target to increase our total Resource tonnes and also move a substantial portion of our maiden JORC Resource into the higher confidence Indicated category to enable a prefeasibility study to commence before the end of the year.

“In tandem with our drilling activities, test work will continue including the production of samples of graphite concentrates for the expandable graphite market and the lithium ion battery market, together with the traditional graphite markets. Test work conducted to date has delivered highly positive results, with purity of above 99.95% being achieved for size fractions between 106 µm and 500µm, which are typically used for the production of spherical graphite. These consistently encouraging results underpin the Project’s ability to produce high quality graphite concentrates, which should be suitable for a number of commercial applications.”

Drilling Programme Update

Armadale has signed a drilling contract with CoreworthyDrilling (T) Ltd, an established Tanzanian based drilling company. Mobilisation of the Reverse Circulation (‘RC’) drill rig has commenced and drilling is anticipated to begin in early June.

The exploration programme for 2017 is focused on upgrading the size of the JORC compliant Resource as well as upgrading the resource category so that a significant portion of it moves into the Indicated category. Areas of near surface higher grade mineralisation have been identified for closer spaced drilling. Initial drilling will be RC with selected areas infilled with diamond drilling to provide samples for more detailed metallurgical test work.

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 Tim Jones, Company Secretary		+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

Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company

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