TIDMACP
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector:
Investment Company
10 October 2016
Armadale Capital Plc ('Armadale' or 'the Company')
Discovery of high-grade coarse flake graphite mineralisation
Mahenge Liandu Project
Armadale, the AIM quoted investment company focused on natural
resource projects, is delighted to announce a preliminary discovery
of high-grade coarse flake graphite mineralisation close to the
surface at its Mahenge Liandu project in Tanzania ('Mahenge
Liandu').
Summary:
-- Preliminary discovery of high-grade coarse flake graphite
mineralisation confirmed;
-- Wide intervals of graphite schist, logged as high grade, have been
intersected on the first reverse circulation ('RC') drill
line
completed with mineralisation commencing from near surface;
-- Drilling commenced circa 2km from a previous RC drill hole, which
returned 60m @ 10.7% Total Graphitic Carbon ('TGC'); and
-- Drilling is continuing on site and is expected to be completed in 3 to
4 weeks.
William Frewen, Chairman of Armadale said:
"This preliminary discovery of high-grade coarse flake graphite
mineralisation underpins our belief that Mahenge Liandu offers
significant upside opportunity. Moreover, being able to announce an
extension to the maiden discovery from the first line of drilling
is extremely encouraging. Following the recent restructuring of the
Mpokoto gold asset, which we maintain prospective exposure to, we
believe these highly encouraging results firmly underpin our
refocused growth strategy as we target the burgeoning graphite
market, which is experiencing increasing demand from lithium-ion
battery manufacturers."
Preliminary RC drilling results
The RC drilling undertaken to date has intersected wide
intervals of high-grade graphite mineralisation. More specifically,
mineralised graphitic schists with widths between 40-65m have been
intersected in multiple holes. This discovery is an extension to
the previously announced high-grade coarse flake graphite result,
which retuned an outstanding 60m @ 10.7% TGC.
The current drilling programme, which will conclude in 3 to 4
weeks, is targeting the most advanced prospect within the project
area. It is well defined by extensive areas of graphite outcrop and
there is a strong electro-magnetic anomaly over the planned
drilling area. The first batch of samples has now been submitted to
ALS in Brisbane, Australia for analysis.
Conclusion
The Board of Armadale Capital considers the results to date
continue to indicate that the Mahenge Liandu prospect has the
potential to be a world-class graphite deposit. A substantial width
of graphite mineralisation has now been defined and it is occurring
from surface or near surface on multiple drill holes over a 2km
strike length. Further drilling and assay results will be reported
as they come to hand.
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% TGC has been
demonstrated through the 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.
**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, which is now its main focus. 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.
Other assets Armadale has an interest in include the Mpokoto
Gold project in the DRC and portfolio of quoted investments.
More information can be found on the website
www.armadalecapitalplc.com.
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014
View source version on businesswire.com:
http://www.businesswire.com/news/home/20161006006481/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
October 07, 2016 02:00 ET (06:00 GMT)
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