Armadale Capital Plc Excellent Drilling Results Continue at Mahenge Liandu

 
TIDMACP 
 
 

Armadale Capital Plc ('Armadale' or 'the Company')

Excellent Drilling Results Continue

at Mahenge Liandu

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce the results of a recent 1,500m 28-hole reverse circulation drill programme completed at the Mahenge Liandu Graphite Project in Tanzania ('Mahenge Liandu').

Overview

 
 
    -- Wide high-grade mineralisation consistently intersected from shallow, 

near surface depths, with thick graphite intersected in 24 of the 28

holes completed

 
    -- Numerous holes returned exceptionally high-grade intercepts, making 

Mahenge Liandu one of the highest-grade graphite deposits in Tanzania,

with results including:

6m @ 12.8% Total Graphitic Content ('TGC') from surface

14m @ 16.7% TGC from 2m

15m @ 14% TGC from surface

11m @ 14.8% TGC from 15m

10m @ 18.5% TGC from 16m

 
    -- Drill results expected to support an increase in the quantum and 

confidence category of the maiden JORC Resource estimate of 40.9Mt at

9.41% TGC - resource update expected by the end of the year

 
    -- Significant further upside remains - drilling focused on 1,200m strike 

length, however the deposit remains open in most directions

 
    -- Metallurgical test-work has confirmed the mineralisation responds well 

to conventional floatation circuits and can produce concentrate purity

well above industry benchmarks

 
    -- Definitive Feasibility on track to be completed in Q2 2018 - targeting 

a 400,000tpa operation with a head grade of 10-15% TGC

Nick Johansen, Director of Armadale said:"The current resource is one of the largest high-grade deposits in Tanzania and work to date has demonstrated Mahenge Liandu's potential as a commercially viable deposit thanks to its significant tonnage, high-grade coarse flake and near surface mineralisation, which is contained within one contiguous ore body. Crucially, we continue to see significant potential within the asset, and the results from the recent drill work are testament to this. With highs of 18.5% TGC and wide zones of mineralisation identified typically averaging 8-10% TGC, we are very excited for the imminent increase in JORC resource, which we expect to be in a position to deliver by the end of the year."

Feasibility study

The near surface high grade zones confirmed by the current round of drilling points towards cost effective production of a premium graphite product for sale to the market and is further validation of the Company's two stage development plan. The Company anticipates being able to complete a 400,000tpa feasibility study in Q2 2018 as we continue to develop the world class Mahenge Liandu project through to production. We look forward to further significant updates to the market over the coming months

RC Drilling Programme Assay Results

The drilling was carried out on a 200m by 80m pattern over a strike length of 1,200m with a total of 27 holes completed. The results confirm consistent zones of mineralisation staring from at or near surface typically 8-10% TGC.

Table 1 Graphite Assay Results from the 2017 drilling programme

 
Hole ID    Easting  Northing   Max Depth  From  To  width  TGC % 
LDRC0022   251,673  9,035,201  65         0     58  58     7.4 
inc                                       0     6   6      12.8 
inc                                       51    55  4      15.9 
LDRC0023   251,855  9,035,275  51         0     41  41     10.6 
inc                                       10    14  4      14.9 
inc                                       29    33  4      15.5 
inc                                       35    41  6      14.3 
LDRC0024   251,821  9,035,352  33         0     27  27     9.1 
inc                                       0     8   8      11.5 
LDRC0025   251,887  9,035,209  34         0     28  28     12.3 
inc                                       2     16  14     16.7 
LDRC0026   251,785  9,035,419  63         0     46  46     8.2 
inc                                       0     15  15     14 
LDRC0027   251,758  9,035,495  63         0     16  16     8.1 
and                                       27    40  13     8 
and                                       43    52  9      8 
LDRC0028   251,938  9,035,596  41         0     20  20     9.4 
inc                                       0     13  13     10.6 
LDRC0029   251,971  9,035,522  50         7     37  30     9.5 
inc                                       15    26  11     14.8 
LDRC0030   251,909  9,035,660  19                          NSI 
LDRC0031   252,014  9,035,450  63         4     8   4      4.2 
and                                       20    25  5      7.7 
and                                       34    57  23     12.5 
inc                                       46    57  11     17.5 
LDRC0032   252,046  9,035,364  57         16    26  10     18.2 
and                                       36    46  10     6.9 
LDRC0033   251,726  9,035,576  61         44    54  10     4.3 
LDRC0034   251,694  9,035,642  48                          NSI 
LDRC0035   251,653  9,035,504  74         44    68  24     6.9 
inc                                       58    63  5      14.5 
LDRC0036   251,620  9,035,351  33         1     10  9      10.1 
LDRC0037   251,642  9,035,283  69         3     15  12     13.8 
inc                                       3     9   6      17.5 
and                                       44    57  13     9.8 
LDRC0038   251,588  9,035,433  63         40    53  13     11.4 
LDRC0039   251,461  9,035,183  66         25    45  20     10.2 
inc                                       27    36  9      15.8 
LDRC0040   251,432  9,035,265  56         16    20  4      8.5 
LDRC0041   251,395  9,035,330  79         17    38  21     11.5 
inc                                       26    36  10     15.2 
LDRC0042   251,494  9,035,112  60         30    41  11     11.5 
inc                                       36    41  5      14.8 
LDRC0043   251,527  9,035,039  33                          NSI 
LDRC0044   251,566  9,034,969  93         45    86  41     6.8 
inc                                       45    48  3      14.9 
LDRC0045   251,600  9,034,897  50                          NSI 
LDRC0046   251,268  9,035,127  105        3     13  10     17.9 
and                                       20    25  5      14.2 
and                                       34    50  16     6.7 
LDRC0047   251,295  9,035,059  58         9     17  8      10.8 
and                                       49    55  6      12 
LDRC0048   251,018  9,035,201  20         2     6   4      15.9 
LDRC0049   251,357  9,034,984  67         44    52  8      13.5 
 
 

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.

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**

 
Enquiries: 
Armadale Capital Plc                        [phone] 
Tim Jones, Company Secretary 
Nomad and broker: finnCap Ltd               [phone] 
Christopher Raggett / Simon Hicks 
Joint Broker: Beaufort Securities Limited   [phone] 
Jon Belliss 
Press Relations: St Brides Partners Ltd     [phone] 
Susie Geliher / Charlotte Page 
 
 

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 inferred mineral resource estimate of 40.9Mt @ 9.41% TGC. At least 32Mt of this resource has an average grade of 10.47% TGC, 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.

Other assets Armadale has an interest in include the Mpokoto Gold project in the Democratic Republic of Congo and a portfolio of quoted investments.

More information can be found on the website www.armadalecapitalplc.com

LEI: 213800495EK876JETD10

Classification: 3.1. Additional regulated information required to be disclosed under the laws of a Member State

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(END) Dow Jones Newswires

November 07, 2017 03:31 ET (08:31 GMT)