Armadale Capital Plc (LON:ACP) Mineral Resource Update Nearing Completion

Nick Johansen, Director of Armadale, said: “These latest drilling results clearly enhance Mahenge Liandu’s already favourable economics and provide valuable data as we move towards conclusion of the updated Mineral Resource.

Armadale Capital Plc (‘Armadale’ or ‘the Company’)
Successful Drilling Results Confirm High-Grade Mineralisation
Mineral Resource Update Nearing Completion

Armadale Capital plc (LON: ACP), the AIM-quoted investment group focused on natural resource projects in Africa, is pleased to confirm the receipt of assay results from its final diamond drilling campaign at the Mahenge Liandu Graphite Project in Tanzania (“Mahenge Liandu” or “the Project”), which confirm the high-grade near-surface mineralisation.

Combined with the recently announced reverse circulation (“RC”) drilling results, the geological team is confident that it now has sufficient data points to fully define a JORC compliant Mineral Resource update. Importantly, the Resource update will underpin an initial 10-15 year mine life, in respect of only 25-30% of the mineralised ground tested by drilling and incorporated within the Resource.

The Mineral Resource forms part of an ongoing Definitive Feasibility Study (“DFS”) into the development of a high value graphite operation at Mahenge Liandu, supplying fast-growing end markets such as battery technology.

Highlights:

High-grade, near surface assayed diamond drill intercepts recorded including:
– 5m @ 19.8% total graphite content (“TGC”) from 1m;

– 14m @ 14.3% TGC from 22m;

– 8m @ 15.3% TGC from 7m; and

– 7m @ 16.2% TGC from 22m

Diamond drill results, which confirm broad intervals of high-grade mineralisation, are consistent with findings from the recently concluded RC drilling campaign

Next steps focused on utilising the results to fully define, with high geological confidence, a JORC compliant Mineral Resource update focused on high-grade and near surface mineralisation for first 10-15 years of a planned 32 year mine life
Existing JORC compliant indicated and inferred mineral resource estimate announced February 2018 stands at 51.1Mt at 9.3% TGC, including 38.7Mt Indicated at 9.3% and 12.4Mt at 9.1% TGC, making it one of the largest high-grade resources in Tanzania

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Results positively impact on the Project’s economics and forward commercialisation plans which, as with recent RC drill data and metallurgical results, are key to discussions in respect of further off-take and project level financing agreements with Chinese partners

Nick Johansen, Director of Armadale, said: “These latest drilling results clearly enhance Mahenge Liandu’s already favourable economics and provide valuable data as we move towards conclusion of the updated Mineral Resource. Based on the results of diamond and RC drilling programmes, we are confident the Mineral Resource will confirm that in Mahenge Liandu, we have a strategically important project that is well placed to become a leading supplier of high value graphite products for many years to come.

“As we advance towards the final stages of the DFS, strategically the Board is thinking beyond completion to the important next steps to accelerate the delivery of a first-rate graphite project. Notably, we are focusing more definitively on our commercialisation plans, especially off-take and project level finance agreements, to ensure the transition from explorer to emerging producer continues to gain momentum.”

 

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