TIDMACP
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector:
Investment Company
29 May 2019
Armadale Capital Plc ('Armadale' or 'the Company')
Fast-tracking Commercialisation Plans for the Mahenge Liandu
Graphite Project
Armadale Capital plc (LON: ACP) the AIM quoted investment
company focused on natural resource projects in Africa, is
accelerating plans to commercialise its Mahenge Liandu Graphite
Project ("Mahenge Liandu" or the "Project") in Tanzania ahead of
the anticipated completion of the Definitive Feasibility Study
scheduled for Q4 2019 ("DFS").
Highlights:
-- Key meetings with current / prospective Chinese off-take and project
finance partners are scheduled for early June. The intention is
to
progress with binding agreements as part of the Board's intent
to
accelerate commercialisation plans
-- Continue a thorough review of graphite plant design with a capacity of
400 Kilo-Tonnes Per Annum ('ktpa') progressing with
experienced
Chinese partners to ensure highly optimal and efficient
facility
-- The Mahenge Liandu DFS remains on track for completion by year end and
will now incorporate current engineering, procurement and
construction
("EPC") pricing of the plant
-- A graphite resource update is underway, which incorporates positive
results of infill drilling, and targeted to complete by end-June
2019
-- Rigorous testing of ground water suitability for general use at the
mine and in the processing circuit is nearing finalisation
-- Incremental metallurgical test-work on fresh samples from Mahenge
Liandu is underway in Perth, Australia. These incorporate
the
production of high purity concentrates to maximise the value of
the
resource
-- Active local community engagement continuing including extensive local
school and well-being services initiatives
Nick Johansen Director of Armadale said:"Looking beyond the
completion of the DFS, which is targeted for year-end, the Board is
now focused on fast-tracking the various work streams critical to
bringing the Mahenge Liandu Graphite Project into commercial
production.
"Our most important task is to ensure that a high-purity
graphite product, which attracts a material price premium, can be
consistently produced. This will deliver greater visibility of the
true value of the Project to our potential Chinese partners which
will in turn further support the significant progress being made to
sign binding off-take and project finance agreements as soon as
practical.
"In tandem, the team are finessing details for the processing
plant, which has an initial capacity of 400ktpa, and at the same
time are ensuring ground-water suitability at site. Most
importantly, we are ensuring our traction with the local community
at Mahenge Liandu remains strong, as their ongoing support is
critical to commissioning the Project.
"We look forward to providing shareholders with further regular
updates as the Board moves to fast-track efforts towards
transitioning from explorer towards emerging miner."
FURTHER INFORMATION
Product Marketing and Quality
Key members of Armadale's management team will be holding
meetings with current / prospective Chinese parties in early June
to progress securing binding off-take and project funding
agreements, as part of the Board's plans to accelerate
commercialisation of the Mahenge Liandu Graphite Project. Securing
these agreements will validate the Project and mark the start of
Armadale's transition from graphite explorer to emerging miner.
As part of this process, test-work underway at Bureau Veritas'
facility in Perth, Australia, is focused on maximising the quality
of the graphite product, with an increased emphasis on enhancing
purity levels. Specifically, the test-work is aimed at producing
higher levels of purity for a certain volume of output.
Previous results from the region confirm the potential to
produce high value produce from Mahenge graphite deposits.
Consequently, results from the test-work programme will be used in
the plant design being progressed by a leading Chinese group, which
has provided an update on EPC pricing that will now be factored
into the Mahenge Liandu DFS.
Resource Update
The Company is fast-tracking work on the graphite resource
update, incorporating the latest topographic survey data and most
recent round of reverse circulation and diamond drilling. The
drilling programme is focused on infill drilling existing areas, so
that graphite mineralisation can be more accurately modelled. The
results of the update will be used in the mine planning phase of
the DFS.
Water Quality Test-work
An important cost saving development for when mining operations
commence will be the ability to use ground water rather than
securing it from third-party sources. As such, water samples from
bore-holes around the proposed mining site have been collected for
testing to ensure suitability during mine construction and in the
process plant.
Community Engagement
Armadale's team has increased engagement work with local
community groups by donating food and necessary supplies to schools
and well-being services.
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
**ENDS**
For further information, please visit the Company's website
www.armadalecapitalplc.com, follow Armadale on Twitter
@ArmadaleCapital or contact:
Enquiries:
Armadale Capital Plc +44 (0) 20 7236 1177
Paul Johnson, Non-Executive Director (UK)
Tim Jones, Company Secretary
Nomad and broker: finnCap Ltd +44 (0) 20 7220 0500
Christopher Raggett / Max Bullen-Smith
Joint Broker: SVS Securities +44 (0) 20 3700 0093
Tom Curran / Ben Tadd
Press Relations: St Brides Partners Ltd +44 (0) 20 7236 1177
Isabel de Salis / Juliet Earl
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, which is now its main focus. The Project is
located in a highly prospective region with a high-grade JORC
compliant Indicated and inferred mineral resource estimate of
51.1Mt @ 9.3% TGC, making it one of the largest high-grade
resources in Tanzania, and work to date has demonstrated Mahenge
Liandu's 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.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190529005400/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
May 29, 2019 05:15 ET (09:15 GMT)
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