Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce an update of its ongoing exploration programme at its Mpokoto Gold Project (‘Mpokoto’ or ‘the Project’) in the Katanga Province of the Democratic Republic of Congo (‘DRC’). The Company has initiated a 2,000m auger drill programme consisting of approximately 150 auger holes. Despite the ongoing rainy season, to date approximately 53 holes have been completed and qualitative sampling by panning the drill spoil demonstrates that the gold mineralisation previously identified extends to both the north-west and south-east of the current defined resource zone at Mpokoto, which hosts 678,000oz of gold.
The present exercise will, on completion, be followed up with further auger drilling on a tighter grid to delineate target mineralisation which will then be the focus of apportion of the planned 2,500m diamond drill programme. As well as focussing on the north and south oxide extension a portion of the programme will test for high-grade gold extensions around hole MPD 064 which intersected 55m @ 3.3g/t from 45m including 15.4m @ 10.5g/t from 80m.
The objective of the overall exploration programme is increasing the planned life of mine, which currently stands at four years for Phase 1 production, expanding the current Total Mineral Resource of 678,000oz gold (‘Au’) from 14.58 million tonnes (‘Mt’) @ 1.45g/t Au at a cut-off grade of 0.5g/t and improving the overall project economics which are benefiting from the current gold price environment.
With regards to overall project financing, Africa Mining Contracting Services group (‘A-MCS’) continues to undertake its review of the feasibility study and the parties remain in discussions with a view to finalising the project finance of at least US$20m for Mpokoto.
Peter Marks, Chairman of Armadale, said:
“We continue to work to develop and add further value to Mpokoto alongside our funding discussions. The exploration programme has initially targeted, with auger drilling, oxide mineralisation to the north and south of the main orebodies where mineralisation remains open along strike, and has made good progress despite the ongoing rainy season. The completion of an initial 50 holes has demonstrated the extensions of gold mineralisation the north and south-west, which is very positive.
“There is increasing interest in near term gold projects in particular as the gold price continues rise. The Mpokoto feasibility study projected operating costs of US$792/oz and a pre-tax net present value (‘NPV’) of US$19.05 million has been established for Phase 1, which importantly relates only to the shallow oxide orebody (30-40m) and a gold price of US$1,250/oz.”
For further information please visit www.armadalecapitalplc.com, follow us on Twitter @ArmadaleCapital, or contact:
Armadale Capital Plc
Charles Zorab, Company Secretary
|+44 20 7233 1462|
Nomad and broker: finnCap Limited
Christopher Raggett / Simon Hicks
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Joint Broker: Beaufort Securities Limited
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Press Relations: St Brides Partners Ltd.
Charlotte Heap / Susie Geliher
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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 Mpokoto Gold project in the Democratic Republic of the Congo, in which it owns an 80% interest. Mpokoto has a current Total Mineral Resource of 678,000 oz gold (‘Au’) from 14.58 million tonnes (‘Mt’) @ 1.45g/t Au at a cut-off grade of 0.5g/t. The Company has recently announced the results of a Feasibility Study for Mpokoto which demonstrated a pre-tax net present value of US$43m based upon a discount rate of 5% and a gold price of US$1,250/oz. The Project is subject to four Mining Licences which are valid for an initial term of 30 years from 30 September 2014.
Armadale also currently holds approximately a 30% interest in Mine Restoration Investments Ltd, a South African listed company, as well as a number of other quoted investments.
More information can be found on the website www.armadalecapitalplc.com.