Appointment of Study Manager and Development Up...

Appointment of Study Manager and Development Update

Armadale Capital Plc

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

23 November 2017

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

Appointment of Study Manager and Development Update

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce a development update from the Company’s Mahenge Liandu Graphite Project in Tanzania (‘Mahenge Liandu’ or ‘the Project’) as it moves through scoping study, feasibility and decision to mine.

The company have appointed highly credentialed graphite experts BatteryLimits (http://www.batterylimits.technology/) to project manage the Engineering and Processing aspects of the Mahenge Liandu. BatteryLimits have previously, and currently, advise a number of the major graphite players in Tanzania and Mozambique and in the Board’s opinion, will add considerable value to the feasibility study process.

Completion of an initial scoping study is expected early 2018. On completion Armadale will move directly into a feasibility study which is expected be completed in the first half of 2018. The project is being scoped at 400,000tpa throughput targeting an initial head grade in the range of 10-15% TGC making it one of the highest-grade graphite projects in Tanzania.

Overview

• Highly experienced and graphite focussed Mining, Engineering and Processing firm appointed to project manage the feasibility process
  • BatteryLimits have worked with a large number of graphite companies including Magnis Resources, Blackrock Mining, Volt Resources and Graphex Mining
• Feasibility study to commence in 2018 directly following completion of scoping study with the objective of reaching decision to mine in near term
• Feasibility will adopt a staged approach with the intention of delivering lower initial capital cost and expansion funded from cash flow
  • Stage 1 targeting 400,000tpa throughput focussing on near surface high grade mineralisation to maximise early cash flow, which is supported by recent near surface high grade intercepts. This targets an initial head grade in the range of 10-15% TGC making it one of the highest-grade graphite projects in Tanzania.
  • Stage 2 will increase production in line with the growth of the expanding graphite market
• Staged approach is expected to result in lower initial capital cost and expansion will be funded from cash flow
• Large resource base of 40.9Mt @ 9.4% TGC allows a long term mine life.
• JORC resource update expected Q4 2017
• Initial Scoping Study expected early 2018
• Feasibility Study expected Q2 2018

Nick Johansen, Director of Armadale said, “Armadale is excited to be working with BatteryLimits who are recognised as one of the most experienced graphite study managers globally having worked with a large number of graphite companies including Magnis Resources, Blackrock Mining, Volt Resources and Graphex Mining. The Board is delighted with the significant progress made over the last year and expects that the coming weeks and months will be punctuated with regular news updates as Armadale rapidly advances along the road to production and delivers on our targeted milestones between now and the first half of 2018.”

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: Beaufort Securities Limited Jon Belliss		[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 40.9Mt @ 9.41% TGC. At least 32Mt of this resource has an average grade of 10.47% TGC, 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

LEI: 213800495EK876JETD10

Classification: 2.2 Inside Information

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