TIDMACP
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector:
Investment Company
25 June 2019
Armadale Capital Plc ('Armadale' or 'the Company')
Exceptionally High-Grade Assay Results Verify Commercialisation
Plans
for the Mahenge Liandu Graphite Project
Armadale Capital plc (LON: ACP), the AIM quoted investment group
focused on natural resource projects in Africa, is delighted to
announce exceptionally high-grade assay results from its Mahenge
Liandu Graphite Project ('Mahenge Liandu' or the 'Project') in
Tanzania, which validate commercialisation plans in progression
(see RNS dated 29 May 2019).
Highlights
-- First four of 18-hole reverse circulation ('RC') drill programme received
-- Exceptionally high-grade near surface assayed intercepts recorded 7m @ 16.9% total graphite content ('TGC') from 31m 7m @ 16.8% TGC from surface 9m @ 14.8% TGC from surface
-- Encouraging results are part of broader zone of high-grade mineralisation that includes 39m @ 11.2% TGC from surface, 57m @ 7.6% TGC from surface and 63m @ 8% TGC from 12m
-- Wide zones of high-grade near surface mineralisation materially above the 12.5% used in the average life of mine scoping study completed in March 2018
-- Eight diamond drill-holes also drilled and are currently being assayed
-- Results have favourable impact on the Project's economics and forward commercialisation plans: Higher average grade from near surface mining in early years Lower extraction costs Potential enhanced EBITDA margins
-- Results expected to have a positive outcome on the Definitive Feasibility Study ('DFS') on track to complete Q4 2019, aiding transition from exploration to mining phase
Nick Johansen Director of Armadale said: "Transitioning from
explorer to emerging miner is now the Board's core focus in the
lead up to completion of the DFS and beyond. Consequently, we are
delighted that the first four assay results from the current RC
drilling programme demonstrate exceptional grades with near surface
large mineralised intercepts. The immediate takeaway is two-fold:
firstly, higher than average grade; and secondly, the potential for
low extraction costs given the mineralisation is near surface.
"The results received to date continue to point to a potentially
viable graphite mine and verify the Board's commercialisation plans
which are progressing positively. As such, we look forward to
further updating the market as we accelerate our plans to
commission the Mahenge Liandu Graphite Project."
MAHENGE LIANDU GRAPHITE PROJECT, TANZANIA
Armadale's wholly-owned Mahenge Liandu Graphite Project is in a
highly prospective region, with a high-grade JORC compliant
indicated and inferred mineral resource estimate announced February
2018 - 51.1Mt at 9.3% TGC. This includes 38.7Mt Indicted at 9.3%
and 12.4Mt at 9.1% TGC, making it one of the largest high-grade
resources in Tanzania.
Work to date at the Project has demonstrated its 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.
An 18-hole reverse circulation ('RC') drill programme totalling
958m is currently underway; assay from the first four drill-holes
totalling 262m have been received:
HoleID East North Elevation Depth From To Difference TGC% Grade Thickness Including
LDRC0050 251818 9035117 593 52 0.0 39.0 39.0 11.2 39m@11.2% tgc 7m@16.9% from 31m
LDRC0051 251783 9035216 643 67 0.0 57.0 57.0 7.64 57m@7.64% 7m@16.78% from surface
LDRC0052 251744 9035287 672 79 12.0 75.0 63.0 7.99 63m@7.99%
LDRC0053 251717 9035358 686 64 22.0 31.0 9.0 14.76 9m@14.76% 9m@14.75% from surface
251717 9035358 686 64 36.0 60.0 24.0 5.04 24m@5.04%
Additionally, eight diamond drill-holes have also been drilled
and are currently being assayed.
Upon completion of the current infill drilling campaign focused
on the initial mine pit, the Company expects to improve defining
mineralisation, provide critical data for resource modelling and
design an optimal mine.
Armadale remains on track to complete a DFS at the Project in Q4
2019. This has been based on the results of a Scoping Study
completed in March 2018, which verified that the Mahenge Liandu
Project could produce a coarse flake, high-purity graphite product
underpinning a compelling business case to progress
commercialisation plans. Based on a 400,000tpa throughput, the
study highlighted the following key positive metrics:
-- Producing an average of 49,000tpa of high-quality graphite products for a 32-year mine life
-- Near surface nature of deposit produced a low 1:1 strip ratio for the life of the mine
-- Low operating cost of US$408/t, based on an average 12.5% TGC grade for the life of the mine
-- Pre-tax IRR of 122% and NPV of US$349m, with a low development capex of US$35m
-- Maximum draw-down during the construction of the project is US$34.9m and the after-tax payback period is 1.2 years
-- There remains significant scope to further improve returns, with staged expansions as the current mine plan is based on circa 25% of the total resource
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**
For further information, please visit the Company's website
www.armadalecapitalplc.com, follow Armadale on Twitter
@ArmadaleCapital or contact:
Enquiries:
Armadale Capital Plc +44 (0) 20 7236 1177
Paul Johnson, Non-Executive Director (UK)
Tim Jones, Company Secretary
Nomad and broker: FinnCap Ltd +44 (0) 20 7220 0500
Christopher Raggett / Max Bullen-Smith
Joint Broker: SI Capital Ltd +44 (0) 1483 413500
Nick Emerson
Press Relations: St Brides Partners Ltd +44 (0) 20 7236 1177
Isabel de Salis / Juliet Earl
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.
Other assets Armadale has an interest in, include the Mpokoto
Gold project in the Democratic Republic of Congo and a portfolio of
quoted investments.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190624005531/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
June 25, 2019 02:00 ET (06:00 GMT)
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