Armadale Capital Plc (LON:ACP) High-Grade Assay Results – Graphite Project

Nick Johansen Director of Armadale said: “We are delighted with the further exceptionally high-grade assay results, especially as the drill campaign was focused on the initial pit area and has provided data to allow us to define the optimal mine design.

The tenor of the mineralisation in this area and the exceptionally high near-surface grade is an extremely strong boost for the Project as we move along its development pathway.

“Our work continues at pace as we accelerate the transition from explorer to the emerging miner. We believe recent news has demonstrated the enhanced commercial viability of the Mahenge Liandu Project which, with a high-grade JORC compliant indicated and inferred mineral resource estimate of 51.1Mt at 9.3% TGC, is already one of the largest high-grade resources in Tanzania. We look forward to providing further updates as we continue to meet significant milestones in the Project’s development.”

High-Grade Assay Results Further Demonstrate Commercial Potential of Large Graphite Project

Armadale Capital plc (LON: ACP), the AIM-quoted investment group focused on natural resource projects in Africa, is delighted to announce further high-grade assay results from its wholly-owned Mahenge Liandu Graphite Project in the highly prospective Mahenge region of Tanzania (“Mahenge Liandu” or the “Project”).

The results confirm previously identified areas of extremely high-grade near-surface mineralisation that can be targeted for initial mining with positive read-across for lower extraction costs and enhanced EBITDA margins. As a result, the Company expects increased production at the Project based on the targeted throughput of 400,000tpa of ore currently being evaluated as part of a Definitive Feasibility Study (“DFS”).

The initial drill results from the first four holes were announced on 25 June 2019 and can be viewed through the following link: https://bit.ly/2JbaDNg.

Highlights:

  • High-grade near surface assayed intercepts recorded:
    • 8m @ 21.0% total graphitic carbon (“TGC”) from 13m
    • 4m @ 22.8% TGC from 36m
    • 8m @ 21.6% TGC from 6m
    • 7m @ 16.4% TGC from 22m
  • Encouraging results are part of a broader zone of high-grade mineralisation that includes 35m @ 13.2% TGC from surface, 18m @ 13.8% TGC from 24 metres and 31m @ 11.6% TGC from surface
  • Wide zones of high-grade near surface mineralisation are materially above the 12.5% threshold used in the average life of mine scoping study completed in March 2018 which verified the Project could produce a coarse flake, high-purity graphite product
  • This infill drilling campaign, which was focused on the planned initial mine pit, has improved the definition of mineralisation and provided critical data for resource modelling and optimal mine design
  • Drilling results impact favourably on the Project’s economics and forward commercialisation plans – higher average grade from near surface mining in early years, lower extraction costs and potential enhanced EBITDA margins
  • Results are expected to have a positive outcome on the DFS which is currently being undertaken

FURTHER INFORMATION

 

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