Armadale Capital Plc (LON:ACP) Exceptionally High-Grade Assay Results

Nick Johansen Director of Armadale said: “Transitioning from explorer to emerging miner is now the Board’s core focus in the lead up to completion of the DFS and beyond.

Consequently, we are delighted that the first four assay results from the current RC drilling programme demonstrate exceptional grades with near surface large mineralised intercepts. The immediate takeaway is two-fold: firstly, higher than average grade; and secondly, the potential for low extraction costs given the mineralisation is near surface.

“The results received to date continue to point to a potentially viable graphite mine and verify the Board’s commercialisation plans which are progressing positively. As such, we look forward to further updating the market as we accelerate our plans to commission the Mahenge Liandu Graphite Project.”

 
Armadale Capital plc (LON: ACP), the AIM quoted investment group focused on natural resource projects in Africa, is delighted to announce exceptionally high-grade assay results from its Mahenge Liandu Graphite Project (‘Mahenge Liandu’ or the ‘Project’) in Tanzania, which validate commercialisation plans in progression (see RNS dated 29 May 2019).

Highlights

  • First four of 18-hole reverse circulation (‘RC’) drill programme received
  • Exceptionally high-grade near surface assayed intercepts recorded

7m @ 16.9% total graphite content (‘TGC’) from 31m
7m @ 16.8% TGC from surface
9m @ 14.8% TGC from surface

  • Encouraging results are part of broader zone of high-grade mineralisation that includes 39m @ 11.2% TGC from surface, 57m @ 7.6% TGC from surface and 63m @ 8% TGC from 12m
  • Wide zones of high-grade near surface mineralisation materially above the 12.5% used in the average life of mine scoping study completed in March 2018
  • Eight diamond drill-holes also drilled and are currently being assayed
  • Results have favourable impact on the Project’s economics and forward commercialisation plans:
    Higher average grade from near surface mining in early years
    Lower extraction costs
    Potential enhanced EBITDA margins
  • Results expected to have a positive outcome on the Definitive Feasibility Study (‘DFS’) on track to complete Q4 2019, aiding transition from exploration to mining phase

MAHENGE LIANDU GRAPHITE PROJECT, TANZANIA

Armadale’s wholly-owned Mahenge Liandu Graphite Project is in a highly prospective region, with a high-grade JORC compliant indicated and inferred mineral resource estimate announced February 2018 – 51.1Mt at 9.3% TGC. This includes 38.7Mt Indicted at 9.3% and 12.4Mt at 9.1% TGC, making it one of the largest high-grade resources in Tanzania.

Work to date at the Project has demonstrated its 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.

An 18-hole reverse circulation (‘RC’) drill programme totalling 958m is currently underway; assay from the first four drill-holes totalling 262m have been received:

Full RNS link HERE

 

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