TIDMACP
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector:
Investment Company
7 February 2018
Armadale Capital Plc ('Armadale' or 'the Company')
Mahenge Liandu Resource Upgrade to 51.1Mt at 9.3% TGC
With 75% now in the Indicated Category
Armadale, the AIM quoted investment company focused on natural
resource projects in Africa, is pleased to announce a Resource
upgrade at the Mahenge Liandu Graphite Project in Tanzania
('Mahenge Liandu').
Overview
-- Infill drilling of the resource at Mahenge Liandu undertaken to
upgrade the category from Inferred to Indicated to allow for
feasibility studies, mine planning and economics
-- Resource successfully upgraded to 51.1Mt at 9.3% Total Graphitic
Carbon ('TGC'), including 38.7Mt Indicted at 9.3% and 12.4Mt at
9.1%
TGC
-- Upgrade represents a 25% increase from the previous 40.9Mt inferred
resource at 9.41% TGC
-- Over 75% of the Resource now in the Indicated category
-- TGC grade and quantum of indicated resource confirms Mahenge Liandu as
one of the highest-grade graphite deposits in Tanzania and the
rest of
the world
-- Areas of high-grade, near surface mineralisation have been confirmed,
allowing a staged approach to development, which lowers the
capital
development and operating costs early in the mine life
-- Test work completed to date has confirmed that premium quality, high
purity concentrates can be produced using a conventional
flotation
circuit
-- A diamond drilling programme is planned to commence at the conclusion
of the wet season (March / April 2018) to provide samples for
more
extensive metallurgical test work
-- The deposit remains open to the north south and down dip, meaning
there is significant potential to increase the resource further,
with
further drilling planned for later in 2018
-- Mine planning has now commenced and the results from this and the
updated resource will be incorporated in the Scoping Study
being
carried out by experienced engineering consultancy
BatteryLimits,
which is currently underway - results of the Scoping Study
are
expected by the end of Q1 2018
-- Combination of a number of key factors - high overall TGC grade,
sizable indicated resource, ability to utilise convention
flotation
circuit to produce premium quality product and near surface
mineralisation with super high grade TGC (see below) - all point
to
the ability to produce an extremely robust initial scoping study
which
will provide first pass project economics
Nick Johansen, Director of Armadale said: "A 25% increase in the
known graphite resource is a significant achievement. Add to this
the fact that over 75% of the resource is now in the indicated
category and it is clear to see both the value of our project and
the success of our work programmes to-date. We are committed to
maintaining this pace of development, and testament to this we are
pleased to confirm that mine planning has now commenced. The
results of this, together with the expanded and upgraded resource,
will feed into the on-going Scoping Study, which is targeted for
completion by the end of Q1 2018 and will give further clarity on
the commercial potential of Mahenge Liandu. Critically, our Project
has already been proven to be one of the highest-grade graphite
deposits in Tanzania, and with significant amounts of this
mineralisation located near surface we will be able to commence
mining via staged development, which will help fast-track to
production and also lower the capital development and operating
costs early in the mine life. We look forward to providing
shareholders with further updates on our progress in the near
term."
High Grade near Surface mineralisation
The Mahenge Liandu Resource has increased to 51.1Mt with greater
than 75% in the indicated Resource Category. The resource is an
increase of 25% from the 40.9Mt previously reported. The updated
resource figures are reported in Table 1.
Table 1. Mahenge Liandu Resource Statement
Tonnage (Mt) % Cut-Off TGC Average %TGC
Inferred 12.4 3.5 9.1
Indicated 38.7 3.5 9.3
Measured 0 3.5 0
Total 51.1 3.5 9.3
The Resource contains areas of high grade near surface
mineralisation. Armadale is currently working on mine optimisation
with a focus on targeting this near surface high grade
mineralisation. Some of the better near surface high-grade
intercepts include;
-- -- 6m @ 12.8% Total Graphitic Content ('TGC') from surface
-- 14m @ 16.7% TGC from 2m
-- 15m @ 14% TGC from surface
-- 11m @ 14.8% TGC from 15m
-- 10m @ 18.5% TGC from 16m
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 7236 1177
Tim Jones, 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
Susie Geliher / Charlotte Page
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 Indicated and inferred mineral resource estimate of
51.1Mt @ 9.3% TGC, making it 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.
Aside from Mahenge Liandu, Armadale has an interest in a
portfolio of quoted investments and in January 2018 agreed to sell
its interest in the Mpokoto Gold Project in the Democratic Republic
of Congo for total potential consideration of US$562,500 and a 1.5%
royalty on gold produced. Completion of the sale agreement is
subject to execution of a formal binding agreement, which is
expected in Q1 2018.
More information can be found on the website
www.armadalecapitalplc.com
Competent Person statement
The Resource Statement has been prepared by Mark Biggs for and
on behalf of Armadale Capital Plc. Mark Biggs has over 34 years of
experience in base metal, industrial mineral, coal exploration and
mine evaluation throughout Australia, South Africa, Mongolia and
China. He has worked extensively within the Bowen and Surat Basins
and was resident at several Central Queensland coal mines for 22
years. He has held a number of roles in these mine's Technical
Services, including Senior Geologist, Chief Geologist, Coal Quality
and Scheduling Superintendent and Acting Technical Services
Manager. Mark has extensive experience in open cut and underground
exploration techniques, geophysical techniques, assay
interpretation, geotechnical and structural modelling, mining, and
scheduling. 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". Both Mr Biggs and 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.
View source version on
businesswire.com:http://www.businesswire.com/news/home/20180207005561/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
February 07, 2018 05:00 ET (10:00 GMT)
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