ARMADALE CAPITAL PLC: Test work produces 97% TGC concentrates
March 25 2020 - 8:15AM
UK Regulatory
TIDMACP
Armadale Capital Plc ('Armadale' or 'the Company')
Test work produces 97% TGC concentrates
Armadale Capital plc (LON: ACP), the AIM quoted investment group
focused on natural resource projects in Africa, is pleased to
provide positive results from the met test work programme completed
as part of the ongoing Definitive Feasibility Study ('DFS') at the
Mahenge Liandu Graphite Project ('Mahenge' or 'the Project') in
south-east Tanzania, which is at the heart of the group's
transformation from explorer to emerging producer. The met test
work has been undertaken by Bureau Veritas in Perth.
Highlights
-- Met test work confirms Mahenge can produce high quality, high purity
graphite, with conventional technology achieving consistent purity of
above 97% TGC, some of the highest grades in the sector
-- Large proportion of concentrates in the medium size fractions, ideally
suited to the battery market
-- Coarser grind sizes can retain a larger proportion of larger flake sizes,
suited to the expandable and graphite foil markets
-- Results are typical of the high purity smaller and medium flake size in
the Mahenge graphite province
-- Results will feed into the DFS, which is on track to be released by the
end of March to build upon the March 2018 Scoping Study results, which
delivered a compelling NPV of US$349m and an IRR of 122%
Armadale Chairman, Nick Johansen, said: "Being able to produce
such exceptional purity graphite concentrates with results over 97%
is a key milestone for the Company and further confirms our
long-held confidence in the commercial value and economic potential
of Mahenge. Furthermore, high purity graphite concentrates are
hugely important in the rapidly expanding EV market, which is
expected to be the main source of growth in the demand for graphite
over the coming years. Despite the unprecedented global challenges
we are all currently facing as a result of the COVID-19 pandemic,
we remain focussed on finalising the results of the DFS. Naturally,
ensuring the safety of our team is our primary responsibility, but
as most of our work currently comprises desktop studies and the
processing of results from previous fieldwork we have been able to
progress these activities remotely. We look forward to updating
shareholders on the DFS results imminently."
Further Information
Armadale's wholly-owned Mahenge Liandu Graphite Project is
located in the Mahenge province -- a world-class graphite region.
It has a high-grade JORC compliant indicated and inferred mineral
resource estimate announced February 2018 -- 59.5Mt at 9.8% TGC.
This includes 11.5Mt @ 10.5% Measured 32.Mt Indicted at 9.6% and
15.9Mt at 9.8% TGC, making it one of the largest high-grade
resources in Tanzania.
Work to date has demonstrated the Project'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.
Currently, Armadale Capital is completing a DFS based on the
results of a Scoping Study that was completed in March 2018. The
study was based on a throughput of 400,000tpa over a 32-year mine
life and demonstrated exceptional project economics with a
compelling NPV of US$349m and an IRR of 122% and significant
capacity for positive improvement as the current mine plan is based
on circa 25% of the total resource. Since this time, incremental
improvements have been successfully delivered giving the company
increased confidence in the economics of the project.
Following completion of the met test-work programme by Bureau
Veritas in Perth the Company is pleased to report that
representative high-grade core samples have been returned showing
increased grinding consistent purity of above 97%. High purity is
important in the rapidly expanding EV market, which is expected to
be the main source of growth in the demand for graphite over the
coming years.
Result of Test Work Programme
Results of the latest test work programme conducted by Bureau
Veritas are shown in Table 1 with consistent grades over 97% for
the small, medium large and jumbo size fractions.
Flake Size Microns Fresh Oxide
Mass (%) (%) TGC Grade (%)
Super Jumbo > 500
Jumbo 300 -- 500 6.10 97.3
Large 180 -- 300 15.36 97.5
Medium 150 -- 180 18.60 97.5
Small 75 -- 150 31.64 97.5
Fine < 75 28.29 91.1
Total 95.7
Head Assay 14.6
Table 1 -- Concentrate distribution of high-grade composite
Table 2 shows typical graphite flake size distribution across
the deposit with a slightly larger flake size distribution.
Currently most graphite is sold based on +95% TGC grades.
Flake Size Microns Ave Oxide % Mass
Super Jumbo > 500 1.1
Jumbo 300 -- 500 14.8
Large 180 -- 300 25.1
Medium 150 -- 180 22.9
Small 75 -- 150 26.8
Fine < 75 9.5
Table 2 -- Typical concentrate flake size distribution with
purity >95%
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
Nick Johansen, Non-Executive Director
Tim Jones, Company Secretary +44 (0) 20 7236 1177
Nomad and broker: FinnCap Ltd
Christopher Raggett / Simon Hicks +44 (0) 20 7220 0500
Joint Broker: SI Capital Ltd
Nick Emerson +44 (0) 1483 413500
Press Relations: St Brides Partners Ltd
Charlotte Page / Beth Melluish +44 (0) 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 Indicated and inferred mineral resource estimate of
59.48Mt @ 9.8% 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.
More information can be found on the website
www.armadalecapitalplc.com.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20200325005394/en/
CONTACT:
Armadale Capital Plc
SOURCE: Armadale Capital Plc
Copyright Business Wire 2020
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