Reserve Definition Drilling Commences at Maheng...

Reserve Definition Drilling Commences at Mahenge Liandu Graphite Project

Armadale Capital Plc

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

6 June 2018

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

Reserve Definition Drilling Commences at Mahenge Liandu Graphite Project

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce that mobilisation of the diamond drilling rig is now underway at the Mahenge Liandu Graphite Project in Tanzania (‘Mahenge Liandu’ or the ‘Project’), marking the commencement of the Company’s 2018 exploration and Reserve definition programme.

Overview

• 2018 exploration and Reserve definition programme underway at Mahenge Liandu, with the diamond drill rig currently being mobilised on site
• Work will support the upgrade of the current JORC Resource of 51.1Mt at 9.3% TGC to Probable and Proven Reserves in support of the on-going Feasibility Study, which is targeted for completion in Q4 2018, allowing a decision to mine early in 2019
• Drilling will target the initial mining areas, that have been proven to host a 400,000tpa operation over a 32-year mine life
• Diamond drilling will generate representative samples for marketing purposes, with concentrate samples to be sent for further downstream test work and to be sent to potential offtake partners
• Infill Reverse Circulation (‘RC’) drilling is expected to commence following completion of the diamond drill programme
• An airborne topographic survey is also planned to cover the entire mine footprint, including waste dumps and tailings area

Nick Johansen, Director of Armadale said, “Mahenge Liandu has already been established as a significant high-grade graphite mine, with potential to support a 400,000tpa operation over a 32-year mine life and generate meaningful value with an NPV of US$US349m and IRR of 122%. Our 2018 focus is now on further proving the economic value of the Project and ultimately advancing towards a decision to mine early next year. In support of this, the Feasibility Study continues to progress well, and drilling planned in the coming year will support work being undertaken for this – particularly the upgrade of our current resource to Probable and Proven reserves. Prior to this RC drilling, diamond drilling will be conducted to produce samples that we can send to potential offtake partners. Given that Mahenge Liandu is one of the highest grade large flake projects in the world, we are confident that our concentrates will be well received by the market. We look forward to providing further updates on our field work in the coming months.”

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:	Â
Armadale Capital Plc Tim Jones, Company Secretary		[phone]
Nomad and broker: finnCap Ltd Christopher Raggett / Simon Hicks		[phone]
Joint Broker: SVS Securities Tom Curran / Ben Tadd		[phone]
Press Relations: St Brides Partners Ltd Susie Geliher / Charlotte Page		[phone]

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 51.1Mt @ 9.3% TGC. Marking the project 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: https://www.businesswire.com/news/home/20180605006299/en/