TIDMACP
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector:
Investment Company
23 September 2016
Armadale Capital Plc ('Armadale' or the 'Company')
Drilling Commences at the Mahenge Liandu Graphite Project,
Tanzania
Armadale, the AIM quoted investment company focused on natural
resource projects, is delighted to announce that reverse
circulation ('RC') drilling has commenced at its high-grade Mahenge
Liandu Graphite Project in Tanzania ('Mahenge Liandu').
Summary:
-- RC drilling has now commenced over a 2km strike length within the
Mahenge Liandu project area
-- Approximately 1,400m of drilling is planned - targeting graphite
schist mineralisation
-- Mineralisation confirmed by drilling, geological mapping and rock chip
sampling at the southern extent of 2km strike - previous
drilling
returned 60m @ 10.7% TGC
-- Results are expected in Q4 2016 and will support the development of an
initial JORC compliant resource in the near future
-- Photographs of the drilling rigs and pads will be available to view on
the Company's website in the coming days
William Frewen, Chairman of Armadale said:
"The commencement of RC drilling at the Mahenge Liandu graphite
project in Tanzania is an important milestone to cross having
acquired the Project just two months ago. Having identified high
grade target areas through initial explorative work, our focus is
now on defining a JORC compliant resource, with this drill campaign
central to this. Timing wise, it could not be better for a nascent
natural graphite explorer. Surging global demand for electric
vehicles and power storage utilities are directly driving
lithium-ion battery manufacturers to increase output at an
accelerating rate. In turn, this dynamic creates excellent future
opportunities for Armadale Capital and added incentives to expedite
progress of the Mahenge Liandu graphite project."
Further Information on Mahenge Liandu
The Mahenge Liandu project is located in the Ulanga District in
south east Tanzania, approximately 300km south west of Morogoro and
10km from the town Mahenge.
High grade graphite mineralisation of up to 33.8% Total Graphite
Carbon ('TGC') has been demonstrated through analysis of rock-chip
samples taken from Mahenge Liandu in June 2016. Previous drilling
has confirmed high-grade mineralisation from the surface, with
results including 60m @ 10.7% TGC including 24m @ 12.9% TGC and 5m
@ 21.5% TGC. The samples were taken from graphite schist outcrops
over 1.5km of strike that was mapped by the previous owner
surrounding the initial discovery holes.
The area is highly prospective for graphite with Mahenge Liandu
located immediately to the east of Kibaran's Epanko project. In
July 2015, Kibaran completed a bankable feasibility study, with the
following key findings:
-- Proven and probable ore reserves of 10.9mt at 8.6% TGC;
-- Annual EBITDA of US$33.6m for 15 years;
-- Sales price US$1,466/t of concentrate, opex FOB Dar es Salaam $570/t;
and
-- Metallurgical results: 85.7% of distribution greater than 106 micron,
carbon concentrate of 96.3% TGC.
Black Rock Mining's (`Black Rock' and ASX:BKT) Mahenge project
is situated 1km north-west of Armadale's Mahenge Liandu project. It
has a global resource of 131mt at 7.9% TGC (including 38mt at 10.2%
TGC or 16.6mt at 11.1% TGC). Furthermore, Black Rock has delineated
circa 80% of its resources in eight months, demonstrating the
opportunity to add significant value to the Mahenge Liandu project
in a short time frame. On 22 March 2016, Black Rock announced the
results of an independent scoping study with:
-- 52,000 tpa graphite concentrate mining operation (25-year mine life);
-- at cash costs of US$458/t; and
-- a sales price of US$1,236/t (FOB Dar es Salaam).
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 +44 20 7233 1462
Charles Zorab, Company Secretary
Nomad and broker: finnCap Ltd +44 20 7220 0500
Christopher Raggett / Simon Hicks
Joint Broker: Beaufort Securities Limited +44 20 7382 8300
Jon Belliss
Press Relations: St Brides Partners Ltd +44 20 7236 1177
Charlotte Page / Susie Geliher
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. The project is located in a highly prospective
region with proven coarse flake, high grade graphite resources -
ASX listed Kibaran and Black Rock have both identified and are
developing significant proven and valuable graphite projects
immediately adjacent to Mahenge Liandu. A mineralised trend about
1.6km in strike length and up to 500m wide has been identified at
the project, which remains open at depth. Armadale geologists have
mapped and sampled the graphite schist, with results from seven
previous samples ranging from 12.8% - 24.0% TGC. Exploration
drilling completed at the project in December 2015 has further
confirmed the mineral potential of the license area, with results
including 10mt at 6.54% TGC, 24mt at 12.9% TGC and 5mt at 21.5%
TGC. Armadale is targeting a maiden resource estimation in late
2016.
In addition, Armadale is developing of the Mpokoto Gold project
in the Democratic Republic of the Congo, in which it owns an 80%
interest. Mpokoto has a current Total Mineral Resource of 678,000oz
gold ('Au') from 14.58mt @ 1.45g/t Au at a cut-off grade of 0.5g/t.
The results of a feasibility study for Mpokoto demonstrated a
pre-tax net present value of US$43m based upon a discount rate of
5% and a gold price of US$1,250/oz. The project is subject to four
mining licenses which are valid for an initial term of 30 years
from 30 September 2014.
Armadale has a portfolio other quoted investments.
More information can be found on the website
www.armadalecapitalplc.com.
View source version on businesswire.com:
http://www.businesswire.com/news/home/20160922006117/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
September 23, 2016 02:00 ET (06:00 GMT)
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