Armadale Capital Plc Progress Update: Mahenge Liandu Graphite Project Feasibility Study
July 30 2018 - 2:00AM
UK Regulatory
TIDMACP
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector:
Investment Company
30 July 2018
Armadale Capital Plc ('Armadale' or 'the Company')
Progress Update: Mahenge Liandu Graphite Project Feasibility
Study
Armadale, the AIM quoted investment company focused on natural
resource projects in Africa, is pleased to announce a positive
update on the feasibility study underway at its Mahenge Liandu
Graphite Project in Tanzania ('Mahenge Liandu' or the 'Project')
ahead of an anticipated decision to mine in early 2019.
Overview
-- Multiple work streams underway to fast track completion of the
feasibility study and define Maiden Reserves ahead of an
anticipated
decision to mine in early 2019
-- Diamond Drilling underway, the purpose of which is to obtain
representative samples for test work and product marketing. A
total of
450m of drilling and 7 drill holes will be completed.
-- Reverse Circulation ('RC') drill rig mobilised on-site to focus on
upgrading the current JORC Resource of 51.1Mt at 9.3% Total
Graphitic
Carbon ('TGC') to Probable and Proven Reserves
-- Airborne topographic survey now underway covering the area of the
proposed mining permit of 10km2
-- Environmental and Social baseline surveys now underway with an
environmental impact assessment (EIA) and relocation action plan
(RAP)
expected to be submitted in 8-10 weeks
-- Finalised security arrangements with consortium of high net worth
individuals (the "Consortium") pursuant to financing
facility
(announced on 20 October 2017) to provide up to GBP400,000 to
support
the continued development of the Mahenge Liandu, with
Armadale
entering into security agreements and a priority deed with each
member
of the Consortium over the assets of Armadale.
Nick Johansen, Director of Armadale said,"The various critical
work streams at Mahenge Liandu are all progressing extremely well,
and we remain on course to make a decision to mine in early 2019 -
meaning that with a fair wind, we should be producing graphite by
H1 2020.
"We have already demonstrated that Mahenge Liandu is one of the
most attractive graphite development assets globally; with lowest
quartile opex and capex costs, an IRR of 122% and a 1.2 year
payback.The Project NPV of US$349m is also a stark contrast to our
current market cap of under GBP5 million.Combining these robust
economics with ever-improving demand fundamentals for graphite,
Armadale is ideally positioned to rapidly capitalise on this market
opportunity and become a significant new high quality graphite
producer within the next 18-24.
"I look forward to providing further updates regarding our
progress in the coming weeks."
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 20 7236 1177
Tim Jones, Company Secretary
Nomad and broker: finnCap Ltd +44 20 7220 0500
Christopher Raggett / Simon Hicks
Joint Broker: SVS Securities +44 20 3700 0093
Tom Curran / Ben Tadd
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 51.1Mt @ 9.3% TGC.
Marking the project 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/20180729005003/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
July 30, 2018 02:00 ET (06:00 GMT)
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