Improved Mine Plan Increases Production Output by 100% via staged ramp-up
Armadale Capital plc, the AIM-quoted investment group focused on natural resource projects in Africa, is pleased to provide positive results from an Improved Mine Plan produced by experienced graphite specialists BatteryLimits at the Mahenge Liandu graphite project (‘Mahenge’ or ‘the Project’) in south-east Tanzania, which is at the heart of the group’s transformation from explorer to emerging producer.
Improved Mine Study Highlights
- BatteryLimits has completed a detailed mine plan incorporating a ramp up to 500,000 tonnes of processed ore per annum after two years and to 1 million tonnes ore after four years has been completed
- The anticipated production profile has increased the average annual throughput significantly from the 49ktpa envisioned in the March 2018 scoping study, which originally delivered an NPV of $349m and an IRR of 122%
- Increased production profile is anticipated to significantly transform Definitive Feasibility Study (‘DFS’) economics currently being finalised
- The original Scoping Study was limited to just 25% of the Project’s Resource and this Improved Mine Plan continues to be based on less than 25% of the recently updated Resource over a mine life of 17 years, creating significant further upside potential
- Mine Plan results are only based upon resources in the Measured and Indicated category giving a high level of confidence
- Staged ramp-up takes advantage of near-surface high-grade mineralisation for the first four years and then scales up throughput in later years
- Production profile planned to take advantage of increasing demand for graphite as the Electric Vehicle market rapidly expands
Armadale Chairman, Nick Johansen, said: “We have long held confidence in the enormous commercial potential and economic value of our 100% owned Mahenge graphite project and as we near completion of the feasibility study the exceptional results received during the course of additional studies continue to reinforce this view. These results are expected to make a positive impact upon our DFS, which is nearing completion, and we look forward to updating further upon this in the near future.”
Updated Mine Production Schedule
The Improved Mine Plan brings production forward via a staged ramp-up that will initially focus on producing ore at a grade of 12-14% Total Graphitic Carbon (‘TGC’) for the first four years before averaging a grade of 9.5% TGC with a very low strip ratio as the plant ramps up to 1 million tpa. The mine plan utilises less than 25% of the Resource and includes only Measured and Indicated Resources leaving potential to expand production further. The results of a final round of metallurgical test-work are being completed at Bureau Veritas in Perth, Australia on high-grade composites of the diamond core with average grades of 14.9% and 15.6% TGC expected to be received later this month. These results will be used to confirm the flow sheet for the higher grade mineralisation. Table 1 shows the anticipated tonnes and grade as well as the annual output of the Project.
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