TIDMACP
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector:
Investment Company
16 August 2016
Armadale Capital Plc ('Armadale' or 'the Company')
Geological Mapping Identifies Extensive Outcropping
Mineralisation at Mahenge Liandu Graphite Project, Tanzania
Armadale, the AIM quoted investment company focused on natural
resource projects, is pleased to announce that geological mapping
conducted at the Company's recently acquired high grade Mahenge
Liandu Graphite Project in south-east Tanzania ('Mahenge Liandu' or
'the Project') has confirmed extensive areas of graphite
mineralisation. This is coincident with the conductive targets
identified by the recent Electro-Magnetic ('EM') survey and further
highlights the prospectivity of the Project. The Company has now
commenced digging pits into areas of outcrop to obtain samples for
initial metallurgical test work of the graphite mineralisation.
Mobilising equipment, including a bulldozer to clear drilling pads,
is now underway with management expecting drilling to commence in
early September 2016.
Summary:
-- Geological mapping has now been completed at Mahenge Liandu, with
numerous areas of extensive surface outcrop mapped. The
mineralisation
is well correlated with anomalies identified in the recently
completed
EM survey.
-- Mapping covered the eastern and western zones previously identified in
the EM survey. Within these zones, incremental exploration
targets
were shown to have extensive areas of outcrop.
-- Outcropping mineralisation in these new areas was visually observed as
similar to the primary Mahenge Liandu prospect.
-- Work on pits designed to obtain graphite mineralisation for initial
metallurgical test work has now commenced in both of the
main
exploration targets.
-- Highly attractive demand fundamentals demonstrated for graphite - two
binding off take agreements signed between Kibaran Resources
Limited
('Kibaran' and ASX: KNL), which is developing the neighbouring
Epanko
project, with Japanese trading-house Sojitz and German
multi-national
conglomerate ThyssenKrupp.
Exploration programme update:
-- Discussions with drilling companies to undertake reverse circulation
and diamond drilling have now been completed, with
mobilisation
expected to commence once enough drill pads are prepared.
-- The drilling programme is planned to commence in early September 2016.
William Frewen, Chairman of Armadale said:
"We are pleased to confirm that mapping and pit work on site
covering both the eastern and western zones has identified
extensive areas of surface graphite schist outcrop. These new areas
will now be included as priority targets for our drilling programme
commencing in the coming weeks. Having already identified
prospective targets for drilling from our recent EM survey, drill
pads are now being built on site with drill rigs expected to arrive
shortly.
"Rock chip sampling has highlighted high grade graphite
mineralisation of up to 33.8% Total Graphite Content ('TGC'). This
supports recent drill results of 60mt @ 10.7% TGC, including 24mt @
12.9% TGC and 5mt @ 21.5% TGC with all results near the surface.
The EM Survey and mapping has increased our confidence in
identifying a large resource. The primary prospect has a strike
length of 2.6km at Mahenge Liandu, which remains open. A further
mineralised zone identified to the west of this prospect, which has
a 3.7km strike length, remains open."
Commenting on the global demand for graphite Mr Frewen
added:
"The global demand for graphite has been rapidly increasing. We
are pleased to note the recent success of our neighbouring peer
Kibaran signing key off-take agreements with Japanese trading-house
Sojitz and German multi-national conglomerate ThyssenKrupp. The
signing of these contracts validates the mining potential in
Tanzania and the specific graphite region that we are working
in."
Further Information on Mahenge Liandu
The Mahenge Liandu project is located in the Ulanga District in
south east Tanzania, approximately 300km south west of Morogoro and
10km from the town Mahenge.
High grade graphite mineralisation of up to 33.8% TGC has been
demonstrated through analysis of rock-chip samples taken from
Mahenge Liandu in June 2016. Previous drilling has confirmed
high-grade mineralisation from the surface, with results including
60m @ 10.7% TGC, including 24m @ 12.9% TGC and 5m @ 21.5% TGC. The
samples were taken from graphite schist outcrops over a 1.5km of
strike that was mapped by the previous owner surrounding the
initial discovery holes.
The area is highly prospective for graphite with Mahenge Liandu
located immediately to the east of Kibaran's Epanko project. In
July 2015, Kibaran completed a bankable feasibility study, with the
following key findings:
-- Proven and probable ore reserves of 10.9mt at 8.6% TGC;
-- Annual EBITDA of US$33.6m for 15 years;
-- Sales price US$1,466/t of concentrate, opex FOB Dar es Salaam $570/t;
and
-- Metallurgical results: 85.7% of distribution greater than 106 micron,
carbon concentrate of 96.3% TGC.
Black Rock Mining's (`Black Rock' and ASX:BKT) Mahenge project
is situated 1km north-west of Armadale's Mahenge Liandu project. It
has a global resource of 131mt at 7.9% TGC (including 38mt at 10.2%
TGC or 16.6mt at 11.1% TGC). Furthermore, Black Rock has delineated
circa 80% of its resources in eight months, demonstrating the
opportunity to add significant value to the Mahenge Liandu project
in a short time frame. On 22 March 2016, Black Rock announced the
results of an independent scoping study with:
-- 52,000 tpa graphite concentrate mining operation (25-year mine life);
-- at cash costs of US$458/t; and
-- a sales price of US$1,236/t (FOB Dar es Salaam).
Competent Person statement
The information in this announcement that relates to exploration
results is based on information compiled by Mr Matt Bull, a
competent person, who is a Member of the Australian Institute of
Geoscientists. Mr Bull has sufficient experience which is relevant
to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to
qualify as a competent person as defined in the 2012 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves". Mr Bull consents to the inclusion in
the report of the matters based on his information in the form and
context in which it appears.
This announcement contains inside information.
**ENDS**
Enquiries:
Armadale Capital Plc +44 20 7233 1462
Charles Zorab, Company Secretary
Nomad and broker: finnCap Ltd +44 20 7220 0500
Christopher Raggett / Simon Hicks
Joint Broker: Beaufort Securities Limited +44 20 7382 8300
Jon Belliss
Press Relations: St Brides Partners Ltd +44 20 7236 1177
Charlotte Heap / Susie Geliher
Notes
Armadale Capital Plc is focused on investing in and developing a
portfolio of investments, targeting the natural resources and/or
infrastructure sectors in Africa. The company, led by a team with
operational experience and a strong track record in Africa, has a
strategy of identifying high growth businesses where it can take an
active role in their advancement.
The Company owns the Mahenge Liandu graphite project in
south-east Tanzania. The project is located in a highly prospective
region with proven coarse flake, high grade graphite resources -
ASX listed Kibaran and Black Rock have both identified and are
developing significant proven and valuable graphite projects
immediately adjacent to Mahenge Liandu. A mineralised trend about
1.6km in strike length and up to 500m wide has been identified at
the project, which remains open at depth. Armadale geologists have
mapped and sampled the graphite schist, with results from seven
previous samples ranging from 12.8% - 24.0% TGC. Exploration
drilling completed at the project in December 2015 has further
confirmed the mineral potential of the license area, with results
including 10mt at 6.54% TGC, 24mt at 12.9% TGC and 5mt at 21.5%
TGC. Armadale is targeting a maiden resource estimation in late
2016.
In addition, Armadale is developing of the Mpokoto Gold project
in the Democratic Republic of the Congo, in which it owns an 80%
interest. Mpokoto has a current Total Mineral Resource of 678,000oz
gold ('Au') from 14.58mt @ 1.45g/t Au at a cut-off grade of 0.5g/t.
The company has recently announced the results of a feasibility
study for Mpokoto which demonstrated a pre-tax net present value of
US$43m based upon a discount rate of 5% and a gold price of
US$1,250/oz. The project is subject to four mining licenses which
are valid for an initial term of 30 years from 30 September
2014.
Armadale has a portfolio other quoted investments.
More information can be found on the website
www.armadalecapitalplc.com.
View source version on businesswire.com:
http://www.businesswire.com/news/home/20160815006264/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
August 16, 2016 02:00 ET (06:00 GMT)
Armadale Capital (LSE:ACP)
Historical Stock Chart
From Apr 2024 to May 2024
Armadale Capital (LSE:ACP)
Historical Stock Chart
From May 2023 to May 2024