Full Assay Results Confirm Exceptional High-Grade Graphite Deposit across 2.5km Strike Area, Mahenge Liandu, Tanzania

LONDON--()--

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 (m)   Azimuth (deg)   Inclination (deg)   Total Min interval   From (m)   To (m)   TGC (%)
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

Charles Zorab, Company Secretary

+44 20 7233 1462
Nomad and broker: finnCap Ltd

Christopher Raggett / Simon Hicks

+44 20 7220 0500
Joint Broker: Beaufort Securities Limited

Jon Belliss

+44 20 7382 8300
Press Relations: St Brides Partners Ltd

Charlotte Page / Susie Geliher

+44 20 7236 1177

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

Short Name: Armadale Capital Plc
Category Code: MSCM
Sequence Number: 565056
Time of Receipt (offset from UTC): 20161121T180530+0000

Contacts

Armadale Capital Plc

Contacts

Armadale Capital Plc