Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company
18 June 2014
Armadale Capital Plc (‘Armadale’ or ‘the Company’)
Commenced Drilling at Mpokoto Gold Project
and Update on Phase 2 Scoping Study
Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce that it has commenced drilling at the Mpokoto Gold Project (‘Mpokoto’ or ‘the Project’) in the Katanga Province in the south of the Democratic Republic of the Congo. The Company also continues to advance Phase 2 of the Scoping Study for Mpokoto and expects to publish results in Q3 2014.
- Drilling aims to increase the resource potential of the known gold mineralisation at Mpokoto – current resource of 507,000oz of contained gold (‘Au’) and an Exploration Target of 10Mt-15Mt at 1.2g/t-1.5g/t Au
2,400m of reverse circulation drilling over approximately 50 holes
underway intended to:
- Increase the overall Mineral Resource Estimate at the Project, in particular the overall size of the Oxide resource which was the subject of the recent Stage 1 Scoping Study
- Raise the category of certain zones of target mineralisation and inferred resource to the indicated resource category – this would allow for the inclusion of this resource in a proposed feasibility study and, in turn, in a Mineral Reserve for the Project
- Test the strike extensions of higher grade mineralisation identified by previous drilling
- Additional Auger drilling to a shallow depth is also being undertaken to provide further metallurgical samples of shallow oxide ore, per Phase 1 of the Scoping Study – oxide ore is expected to support the first five years of gold production at Mpokoto
- Metallurgical testing will be conducted to provide a better understanding of the ore body, increase confidence in the plant design and to assess the possibility of raising recoveries from the plant for the oxide ores, which presently stand at 90%
- Both drill programmes expected to be completed by the end of July 2014 with results available thereafter
- Phase 2 Scoping Study well advanced targeting unweathered ore at greater than 30m depth
- Results anticipated to further underpin Mpokoto’s value as a robust low cost gold development project with attractive economic fundamentals
- Phase 1 Scoping Study focussed on the shallow oxide ore body and demonstrated a post-tax net present value of US$33.0 million and internal rate of return of 141% based on a discount rate of 8% and a gold price of US$1,250 per ounce (see announcement 7 April 2014)
Justin Lewis, Director of Armadale, said: “Mpokoto has already proven its value as a low cost gold project, boasting highly attractive returns and near term production potential and I am confident that this exploration programme will further unlock the Project’s inherent value. Our primary goal is to commence commercial gold production before the end of 2015 and with results expected from Stage 2 of the Scoping Study, together with drill results, during the next quarter, we are looking forward to consecutive valuation events.”
|Justin Lewis, Director||+44 7973 732603|
|Charles Zorab, Investor Relations|
Nomad and broker: finnCap Limited
|Stuart Andrews||+44 207 220 0500|
Press relations: St Brides Media & Finance Ltd.
|Susie Geliher||+44 207 236 1177|
Armadale Capital Plc is focussed 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.
Armadale is focused on the development of the development of the Mpokoto Gold project in the Democratic Republic of the Congo, to which it holds the right to an 80% interest. Armadale also currently holds approximately a 37% interest in Mine Restoration Investments Ltd, a South African listed company, which aims to develop profitable operations in South Africa through the briquetting and sale of coal fines in KwaZulu Natal and an acid mine drainage project in the Witwatersrand basins, as well as a number of other quoted investments.
More information can be found on the website www.armadalecapitalplc.com.