TIDMACP
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector:
Investment Company
29 January 2018
Armadale Capital Plc ('Armadale' or 'the Company')
Exploration Update and Licencing Applications Commence at
Mahenge Liandu
Armadale, the AIM quoted investment company focused on natural
resource projects in Africa, is pleased to announce that the
exploration and development programme at the Mahenge Liandu
Graphite Project in Tanzania ('Mahenge Liandu') is now well
underway for 2018.
Overview
-- Social and environmental study has now commenced, marking the first
step in the application process for mining lease approvals from
the
Tanzanian Government
-- Completed a detailed topographic survey of the proposed mining area
-- Additional trenching has confirmed the continuity of the deposit
between drilled lines and to the north of the current drilling
pattern
- results will be incorporated into an updated resource model
that is
expected to be completed by the end of February 2018
-- The deposit remains open to the north-south and down dip with
significant potential for expansion with further drilling
-- Mapping of a graphite schist unit to the east of the Mahenge Liandu
deposit has highlighted potential for a second deposit within
the
licence area with medium to high grade outcropping
mineralisation
mapped in a north-south trending unit over 5km of strike
-- Following the rainy season, further drilling will be undertaken to
help define the product quality and assist with marketing of
the
high-quality graphite concentrates - negotiations with a
diamond
drilling company are ongoing and drilling is targeted to
commence
mid-April 2018
-- A Scoping Study for the Project is progressing and will incorporate
the updated resource model - results of the Scoping Study are
expected
by the end of Q1 2018
Nick Johansen, Director of Armadale said: "We are pleased at the
progress we are making in developing Mahenge Liandu and hope to see
an upgrade to the mineral resource estimate by the end of February,
which we believe will provide investors, and potential end users,
with a better sense of the size and scale of our Mahenge Liandu
project. In addition to proving up the resource potential of the
Project, these results will feed into the ongoing Scoping Study,
which remains on track for completion in Q1 2018, marking an
important milestone in the advancement of our Project. In support
of this development, we are delighted to confirm that the
environmental and social studies have commenced earlier than
expected. With these results due in the near term and a new
exploration programme commencing as soon as the weather permits, we
are expediting project development on all fronts. 2018 is set to be
incredibly active and we look forward to regularly updating
shareholders on progress in the forthcoming weeks and months."
Commencement of environmental and social work programme
An independent Environmental Social Impact Assessment ('ESIA')
report, which examines the social and environmental impacts of the
proposed mine development at Mahenge Liandu, has now commenced. The
report, together with a feasibility study over the Project and a
relocation action plan ('RAP'), are the key steps needed to secure
the granting of mining licences over the Project. The study is
being conducted by local environmental consults Enviromine.
Armadale plans to commence a detailed feasibility study and RAP on
completion of the ongoing Scoping Study, which is due in Q1 2018,
allowing for mining lease applications to be submitted later in
2018.
Exploration programme update
The exploration programme continues to progress with the
completion of ground based Differential Global Positioning System
surveys, as well as a more detailed drone survey covering the
proposed mining area. The results from these surveys will aid mine
planning and resource estimation work, which is currently nearing
completion.
A Scoping Study, incorporating the updated resource model, is
on-track to be completed in Q1 2018 with an initial stage 1
throughput of 400,000tpa expanding to 800,000tpa in stage 2. The
study is being completed by experienced Perth based engineering
firm BatteryLimits.
A programme of trenching designed to confirm continuity of the
deposit has now been successfully completed showing extensions to
the known mineralisation to the north and good continuity between
drill lines.
The next phase of exploration will focus on diamond drilling,
which will aid in defining the product quality and assist with
marketing of the high-quality graphite concentrates from the
deposit. Negotiations with the drilling company, Coreworthy
Drilling, are now advanced with drilling expected to commence at
the conclusion of the wet season.
Ongoing mapping designed to help with the exploration drilling
programme for 2018 has identified wide zones on mineralisation to
the west of the Mahenge Liandu deposit. No sampling has yet been
conducted but will be completed prior to drill testing that will
make up part of the 2018 drilling programme. It is noted that the
Mahenge Liandu deposit remains open to the north south and down dip
of current drilling indicating potential for further expansion.
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 inferred mineral resource estimate of 40.9Mt @ 9.41% TGC.
At least 32Mt of this resource has an average grade of 10.47% TGC,
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
View source version on
businesswire.com:http://www.businesswire.com/news/home/20180128005024/en/
This information is provided by Business Wire
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