Armadale Capital Plc Reserve Definition Drilling Commences at Mahenge Liandu Graphite Project
June 06 2018 - 2:00AM
UK Regulatory
TIDMACP
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector:
Investment Company
6 June 2018
Armadale Capital Plc ('Armadale' or 'the Company')
Reserve Definition Drilling Commences at Mahenge Liandu Graphite
Project
Armadale, the AIM quoted investment company focused on natural
resource projects in Africa, is pleased to announce that
mobilisation of the diamond drilling rig is now underway at the
Mahenge Liandu Graphite Project in Tanzania ('Mahenge Liandu' or
the 'Project'), marking the commencement of the Company's 2018
exploration and Reserve definition programme.
Overview
-- 2018 exploration and Reserve definition programme underway at Mahenge
Liandu, with the diamond drill rig currently being mobilised on
site
-- Work will support the upgrade of the current JORC Resource of 51.1Mt
at 9.3% TGC to Probable and Proven Reserves in support of the
on-going
Feasibility Study, which is targeted for completion in Q4
2018,
allowing a decision to mine early in 2019
-- Drilling will target the initial mining areas, that have been proven
to host a 400,000tpa operation over a 32-year mine life
-- Diamond drilling will generate representative samples for marketing
purposes, with concentrate samples to be sent for further
downstream
test work and to be sent to potential offtake partners
-- Infill Reverse Circulation ('RC') drilling is expected to commence
following completion of the diamond drill programme
-- An airborne topographic survey is also planned to cover the entire
mine footprint, including waste dumps and tailings area
Nick Johansen, Director of Armadale said, "Mahenge Liandu has
already been established as a significant high-grade graphite mine,
with potential to support a 400,000tpa operation over a 32-year
mine life and generate meaningful value with an NPV of US$US349m
and IRR of 122%. Our 2018 focus is now on further proving the
economic value of the Project and ultimately advancing towards a
decision to mine early next year. In support of this, the
Feasibility Study continues to progress well, and drilling planned
in the coming year will support work being undertaken for this -
particularly the upgrade of our current resource to Probable and
Proven reserves. Prior to this RC drilling, diamond drilling will
be conducted to produce samples that we can send to potential
offtake partners. Given that Mahenge Liandu is one of the highest
grade large flake projects in the world, we are confident that our
concentrates will be well received by the market. We look forward
to providing further updates on our field work in the coming
months."
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: 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.
More information can be found on the website
www.armadalecapitalplc.com
View source version on businesswire.com:
https://www.businesswire.com/news/home/20180605006299/en/
This information is provided by Business Wire
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June 06, 2018 02:00 ET (06:00 GMT)
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