Positive Drill Results from Mahenge Liandu Graphite Project


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

18 October 2016

Armadale Capital Plc (‘Armadale’ or ‘the Company’)

Positive drill results extend visual discovery of high-grade
coarse flake graphite mineralisation at Mahenge Liandu project

Armadale, the AIM quoted investment company focused on natural resource projects, is pleased to confirm visual logging of Reverse Circulation (‘RC’) chips has extended the discovery of high-grade coarse flake graphite mineralisation at its Mahenge Liandu Graphite Project in Tanzania (‘Mahenge Liandu’).


  • Reverse circulation drilling has confirmed a thick graphite schist deposit with a typical width of 40-60m;
  • Thick intervals of mineralisation have now been intersected from four drill lines which includes 12 RC holes covering 2km of strike length with mineralisation typically commencing near the surface;
  • Graphite mineralisation visually logged as high-grade coarse flake on all four drill lines and is along strike from previously announced results of 60m @ 10.7% Total Graphite Carbon (‘TGC’);
  • Preliminary modelling has indicated a potentially substantial sized graphite resource; and
  • Drilling is continuing on site and is expected to be completed shortly with the results expected before the end of Q4 2016.

William Frewen, Chairman of Armadale said:

“Being able to confirm an extended discovery of high-grade coarse flake graphite mineralisation from an four lines of extensive RC drilling, so shortly after announcing preliminary results, is extremely positive and the Board is highly encouraged with the progress made by the drilling team so far. Moreover, with initial resource modelling pointing towards a substantial near surface graphite resource, the commercial viability of the Mahenge Liandu project is clearly evident.

“Interestingly, recent reports suggest the demand for natural flake graphite could more than double by 2020 to meet the requirements of the battery industry. Concurrently, regulatory changes in China and Europe, could result in demand for expandable graphite, used in flammable retardant building materials, evolving rapidly. Some industry commentators believe this market would require the same quantity of natural flake graphite feedstock as the lithium-ion battery sector further highlighting the exceptional market dynamics of the burgeoning graphite industry.”

Further Information

The RC drilling undertaken, since the inaugural report, the initial results of which were announced on 7 October 2016, comprised four drill lines with new lines of drilling still continuing. All four drill lines intersected substantial graphite mineralisation near the surface within the 2km strike length tested by this drilling programme, which was visually logged as high-grade course flake. The drilling in along strike from previously reported results of 60m @ 10.7% TGC.

The current drilling campaign is expected to conclude shortly. It is expected that the first assay results will be received later in Q4 2016, with an initial Inferred JORC resource anticipated for publication by the end of 2016.

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 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 information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.




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 Page / Susie Geliher


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 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 2km 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.

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.

Short Name: Armadale Capital Plc
Category Code: MSCH
Sequence Number: 555390
Time of Receipt (offset from UTC): 20161018T064815+0100


Armadale Capital Plc


Armadale Capital Plc