Armadale Capital Plc Excellent Drilling Results Continue at Mahenge Liandu Graphite Project

 
TIDMACP 
 
 

Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company

1 August 2017

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

Excellent Drilling Results Continue at Mahenge Liandu Graphite Project

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce wide zones of near surface mineralisation have been intersected in the first drill holes completed at Mahenge Liandu Graphite Project in Tanzania ('the Project' or 'Mahenge Liandu').

Overview

 
 
    -- All holes intersected graphite mineralisation at or near surface with 

widths up to of 58m and an average width of 35m

 
    -- Initial drilling is targeting high grade near surface mineralisation 

that can be accessed early in the mine plan to maximise early cashflow

 
    -- First 16 holes of 2,500m Reverse Circulation ('RC') drill programme 

completed with drilling ongoing

 
    -- Objective of the overall drilling programme is to increase both the 

quantum and confidence category of the maiden JORC Resource estimate

of 40.9Mt at 9.41% Total Graphitic Content ('TGC')

 
    -- Geological mapping to identify extension to the deposit has now 

commenced

 
    -- Bulk sample has now arrived in Perth allowing test-work to commence 
 

Nick Johansen, Director of Armadale said, "Excellent widths of graphite mineralisation up to 58m thick from at or near surface add to the consistently encouraging exploration results from Mahenge Liandu. The continuity of intercepts underpin the board's confidence that this asset has the potential to become a commercially viable mining operation, capable of producing the high value large graphite flakes sought after by, amongst others, expandable graphite and lithium Ion battery manufacturers. As a commodity identified by industries and decision makers worldwide as having strategic importance, our expedited development of Mahenge Liandu towards production should position us strongly, as we continue marketing our product with graphite industry participants including consumers, engineering, procurement and construction providers.

"I look forward to providing further updates as the drill programme continues and we work towards the publication of an enhanced JORC Resource and begin prefeasibility work by the end of 2017."

Drilling Programme Update

Drilling is now well underway with the first 16 holes completed. All the drill holes have intersected graphite mineralisation with up to 58m thickness and an average thickness of 35m. The deposit dips gently to the south east in area of drilling with initial holes targeting areas on at or near surface mineralisation. Drilling is continuing with further drilling intercepts and assay results to be released when the results are available.

 
Hole ID    Easting  Northing   Total Depth  From  To  Width 
LDRC0022   251,673  9,035,201  65           0     58  58 
LDRC0023   251,855  9,035,275  51           0     46  46 
LDRC0024   251,821  9,035,352  33           0     29  29 
LDRC0025   251,896  9,035,210  34           0     28  28 
LDRC0026   251,785  9,035,419  63           0     55  55 
LDRC0027   251,758  9,035,495  63           0     58  58 
LDRC0028   251,938  9,035,596  41           0     20  20 
LDRC0029   251,976  9,035,515  50           0     37  37 
LDRC0030   251,909  9,035,660  19           0     3   3 
LDRC0031   252,010  9,035,443  63           6     56  50 
LDRC0032   252,043  9,035,371  57           13    46  33 
LDRC0033   251,728  9,035,571  61           11    54  43 
LDRC0034   251,694  9,035,643  48           0     3   3 
                                            23 
                                                  27  4 
LDRC0035   251,657  9,035,499  74           37    68  31 
LDRC0036   251,620  9,035,351  33           0     10  10 
LDRC0037   251,654  9,035,279  69           0     58  58 
 
 

Table 1 Graphite intercepts from 2017 drilling programme

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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170731005570/en/

 
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(END) Dow Jones Newswires

August 01, 2017 02:00 ET (06:00 GMT)