Armadale Capital Plc Full Assay Results Confirm Exceptional High-Grade Graphite Deposit across 2.5km Strike Area, Mahenge Lia...

 
TIDMACP 
 
 

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

Full assay results confirm exceptional high-grade graphite deposit across 2.5km strike area,

Mahenge Liandu, Tanzania

Armadale, the AIM quoted investment company focused on natural resource projects, is delighted to announce the remaining assay results from the 2016 drilling campaign at the Mahenge Liandu Graphite Project in Tanzania ('Mahenge Liandu' or 'the Project'), which have demonstrated consistent, commercially viable, high-grade graphite mineralisation of up to 15.7% Total Graphitic Carbon ('TGC') commencing from or near the surface.

A new corporate presentation, providing further information on the Company's investment portfolio, will be uploaded to the Company's website www.armadalecapitalplc.com later today.

Summary:

 
 
    -- Remaining assay results returned from the 2016 drilling campaign at 

Mahenge Liandu confirmed thick interceptions of high-grade coarse

flake graphite across the entire 2.5km mineralised strike area;

 
    -- High grades and intervals up to 63m returned, including: 

LDRC00013, 63m @ 7% TGC from 0m, including 16m @ 15.7% TGC

LDRC00015, 7m @ 11.8% TGC from 0m

LDRC00017, 44m @ 10.1% TGC from 0m including 21m @ 12.9% TGC

LDRC00018, 17m @ 7.9% TGC from 0m including 9m @ 11.5% TGC

LDRC00020, 13m @ 9.8% TGC from 0m

LDRC00021, 15m @ 10.5% TGC from 1m including 3m @ 9.6% TGC;

 
    -- Successful drilling programme returned an average grade of 9.3% TGC 

commencing from or near the surface, implying low extraction costs;

 
    -- All inputs to model the JORC compliant resource estimate are now 

received and the Directors believe feedback continues to indicate a

substantial graphite resource should be confirmed by the end of Q4

2016;

 
    -- Metallurgical test-work, which will indicate the quality of the final 

product, is ongoing with results expected to be finalised in Q1 2017;

and

 
    -- All drilling and test results have been completed on time and within 

budget.

William Frewen, Chairman of Armadale said:

"The full assay results mark the completion of an important milestone at Mahenge Liandu. With an exceptional average grade of 9.3% TGC and intervals up to 63m from or near the surface, the Board expects resource modelling to confirm the presence of a substantial JORC compliant graphite resource, which we hope to be in a position to publish later this year.

"At the macro level, recent news flow out of China has confirmed that the acceleration away from fossil fuels towards renewables is progressing faster than initially anticipated. More encouragingly is the prospect that the global uptake of renewables, particularly wind and solar, could outpace the International Energy Agency's medium term 13% annual forecast for 2015-21. These developments further reinforce the prospect of strong future demand for natural graphite from lithium-ion battery manufacturers, which will be Armadale's primary target market."

Table 1: Full drill Intercepts from 2016 drilling campaign at Mahenge Liandu

 
HoleID     Easting*  Northing*  Max Depth  Azimuth  Inclination  Total Min  From (m)  To (m)  TGC (%) 
                                (m)        (deg)    (deg)        interval 
LDRC0001   250,429   9,033,616  49         270      -62          8          32        40      3.0 
LDRC0002   250,661   9,034,019  28         270      -62          10         0         10      6.5 
LDRC0003   250,605   9,034,006  61         0        90           60         1         61      10.7 
LDRC0004   251,756   9,035,049  55         325      -60          42         1         43      10.2 
LDRC0005   251,817   9,034,907  51         325      -60          10         0         6       2.0 
LDRC0006   252,077   9,035,279  22         325      -60          1          0         1       6.3 
LDRC0007   251,790   9,034,981  40         325      -60          32         6         38      9.3 
LDRC0008   251,717   9,035,122  64         325      -60          47         3         50      7.4 
inc                                                              9          3         12      11.6 
inc                                                              14         36        50      10.0 
LDRC0009   252,185   9,035,063  30         325                   NSI                  NSI 
LDRC0010   252,140   9,035,134  16         325                   NSI                  NSI 
LDRC0011   251,457   9,034,750  22         325                   NSI                  NSI 
LDRC0012   251,377   9,034,908  16         325      -60          NSI                  NSI 
LDRC0013   251,163   9,034,907  73         325      -60          63         0         63      7.0 
inc                                                              16         0         16      15.7 
LDRC0014   251,092   9,034,963  50         325      -60          6          0         6       3.8 
inc                                                              5          10        15      4.6 
inc                                                              8          31        39      6.8 
LDRC0015   251,036   9,035,126  31         325      -60          7          0         7       11.8 
LDRC0016   251,059   9,035,032  34         325      -60          NSI 
LDRC0017   250,703   9,034,110  53         325      -60          44         0         44      10.1 
inc                                                              21         8         29      12.9 
LDRC0018   250,681   9,034,181  26         325      -60          17         0         17      7.9 
inc                                                              9          1         10      11.5 
LDRC0019   250,858   9,034,673  37         325      -60          NSI 
LDRC0020   250,881   9,034,589  40         325      -60          13         0         13      9.8 
LDRC0021   250,885   9,034,538  34         325      -60          15         1         16      10.5 
                                and                              3          21        24      9.6 
 
 

*UTM ARC 1960 Zone 37S

Conclusion

The Board of Armadale is delighted to have received the assays from all holes that have been drilled. Importantly the exploration programme has been completed on time and on budget. The Board now looks forward to reporting Armadale's maiden JORC resource from the Mahenge Liandu Graphite Project in Tanzania in the coming weeks.

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.

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] 
Charles Zorab, 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] 
Charlotte Page / 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, which is now its main focus. The project is located in a highly prospective region with proven coarse flake, high grade graphite.

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

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

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(END) Dow Jones Newswires

November 22, 2016 02:00 ET (07:00 GMT)