High Grade Coarse Flake Graphite Project in Tanzania
Armadale has signed a heads of terms agreement to acquire the Mahenge Liandu Graphite Project (‘Liandu’) in south-east Tanzania. This acquisition will provide the Company with access to a highly prospective market, with strong demand fundamentals; global demand for commercial graphite is expected to double within the next eight years. This growth rate is fuelled by developments in the energy storage industry as graphite is a raw material in lithium-ion batteries, making it a key material in smart phones, tablets, laptops and electric cars.
Liandu is located in a highly prospective region with proven coarse flake, high grade graphite resources – ASX listed Kibaran Resources Ltd (ASX:KNL) and Black Rock Mining Limited (ASX:BKT) have both identified and are developing significant proven and valuable graphite projects immediately adjacent to Liandu. A mineralised trend about 1.6 km in strike length and up to 500m wide has been identified at the project, which remains open at depth, and exploration drilling completed in December 2015 has further confirmed the mineral potential of the licence area, with results including 10m at 6.54% Total Graphite Content (‘TGC’), 24m at 12.9% TGC and 5m at 21.5% TGC. Armadale is targeting a Maiden Resource estimation in late 2016.