Excellent Drilling Results Continue at Mahenge ...

Excellent Drilling Results Continue at Mahenge Liandu

Armadale Capital Plc

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

Excellent Drilling Results Continue

at Mahenge Liandu

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce the results of a recent 1,500m 28-hole reverse circulation drill programme completed at the Mahenge Liandu Graphite Project in Tanzania (‘Mahenge Liandu’).

Overview

• Wide high-grade mineralisation consistently intersected from shallow, near surface depths, with thick graphite intersected in 24 of the 28 holes completed
• Numerous holes returned exceptionally high-grade intercepts, making Mahenge Liandu one of the highest-grade graphite deposits in Tanzania, with results including:
  • 6m @ 12.8% Total Graphitic Content (‘TGC’) from surface
  • 14m @ 16.7% TGC from 2m
  • 15m @ 14% TGC from surface
  • 11m @ 14.8% TGC from 15m
  • 10m @ 18.5% TGC from 16m
• Drill results expected to support an increase in the quantum and confidence category of the maiden JORC Resource estimate of 40.9Mt at 9.41% TGC – resource update expected by the end of the year
• Significant further upside remains - drilling focused on 1,200m strike length, however the deposit remains open in most directions
• Metallurgical test-work has confirmed the mineralisation responds well to conventional floatation circuits and can produce concentrate purity well above industry benchmarks
• Definitive Feasibility on track to be completed in Q2 2018 – targeting a 400,000tpa operation with a head grade of 10-15% TGC

Nick Johansen, Director of Armadale said: “The current resource is one of the largest high-grade deposits in Tanzania and work to date has demonstrated Mahenge Liandu’s potential as a commercially viable deposit thanks to its significant tonnage, high-grade coarse flake and near surface mineralisation, which is contained within one contiguous ore body. Crucially, we continue to see significant potential within the asset, and the results from the recent drill work are testament to this. With highs of 18.5% TGC and wide zones of mineralisation identified typically averaging 8-10% TGC, we are very excited for the imminent increase in JORC resource, which we expect to be in a position to deliver by the end of the year.”

Feasibility study

The near surface high grade zones confirmed by the current round of drilling points towards cost effective production of a premium graphite product for sale to the market and is further validation of the Company’s two stage development plan. The Company anticipates being able to complete a 400,000tpa feasibility study in Q2 2018 as we continue to develop the world class Mahenge Liandu project through to production. We look forward to further significant updates to the market over the coming months

RC Drilling Programme Assay Results

The drilling was carried out on a 200m by 80m pattern over a strike length of 1,200m with a total of 27 holes completed. The results confirm consistent zones of mineralisation staring from at or near surface typically 8-10% TGC.

Table 1 Graphite Assay Results from the 2017 drilling programme

Hole ID	Â	Easting	Â	Northing	Â	Max Depth	Â	From	Â	To	Â	width	Â	TGC %
LDRC0022		251,673		9,035,201		65		0		58		58		7.4
inc		Â		Â		Â		0		6		6		12.8
inc		Â		Â		Â		51		55		4		15.9
LDRC0023		251,855		9,035,275		51		0		41		41		10.6
inc		Â		Â		Â		10		14		4		14.9
inc		Â		Â		Â		29		33		4		15.5
inc		Â		Â		Â		35		41		6		14.3
LDRC0024		251,821		9,035,352		33		0		27		27		9.1
inc		Â		Â		Â		0		8		8		11.5
LDRC0025		251,887		9,035,209		34		0		28		28		12.3
inc		Â		Â		Â		2		16		14		16.7
LDRC0026		251,785		9,035,419		63		0		46		46		8.2
inc		Â		Â		Â		0		15		15		14
LDRC0027		251,758		9,035,495		63		0		16		16		8.1
and		Â		Â		Â		27		40		13		8
and		Â		Â		Â		43		52		9		8
LDRC0028		251,938		9,035,596		41		0		20		20		9.4
inc		Â		Â		Â		0		13		13		10.6
LDRC0029		251,971		9,035,522		50		7		37		30		9.5
inc		Â		Â		Â		15		26		11		14.8
LDRC0030		251,909		9,035,660		19		Â		Â		Â		NSI
LDRC0031		252,014		9,035,450		63		4		8		4		4.2
and		Â		Â		Â		20		25		5		7.7
and		Â		Â		Â		34		57		23		12.5
inc		Â		Â		Â		46		57		11		17.5
LDRC0032		252,046		9,035,364		57		16		26		10		18.2
and		Â		Â		Â		36		46		10		6.9
LDRC0033		251,726		9,035,576		61		44		54		10		4.3
LDRC0034		251,694		9,035,642		48		Â		Â		Â		NSI
LDRC0035		251,653		9,035,504		74		44		68		24		6.9
inc		Â		Â		Â		58		63		5		14.5
LDRC0036		251,620		9,035,351		33		1		10		9		10.1
LDRC0037		251,642		9,035,283		69		3		15		12		13.8
inc		Â		Â		Â		3		9		6		17.5
and		Â		Â		Â		44		57		13		9.8
LDRC0038		251,588		9,035,433		63		40		53		13		11.4
LDRC0039		251,461		9,035,183		66		25		45		20		10.2
inc		Â		Â		Â		27		36		9		15.8
LDRC0040		251,432		9,035,265		56		16		20		4		8.5
LDRC0041		251,395		9,035,330		79		17		38		21		11.5
inc		Â		Â		Â		26		36		10		15.2
LDRC0042		251,494		9,035,112		60		30		41		11		11.5
inc		Â		Â		Â		36		41		5		14.8
LDRC0043		251,527		9,035,039		33		Â		Â		Â		NSI
LDRC0044		251,566		9,034,969		93		45		86		41		6.8
inc		Â		Â		Â		45		48		3		14.9
LDRC0045		251,600		9,034,897		50		Â		Â		Â		NSI
LDRC0046		251,268		9,035,127		105		3		13		10		17.9
and		Â		Â		Â		20		25		5		14.2
and		Â		Â		Â		34		50		16		6.7
LDRC0047		251,295		9,035,059		58		9		17		8		10.8
and		Â		Â		Â		49		55		6		12
LDRC0048		251,018		9,035,201		20		2		6		4		15.9
LDRC0049		251,357		9,034,984		67		44		52		8		13.5

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:	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: 3.1. Additional regulated information required to be disclosed under the laws of a Member State

View source version on businesswire.com: http://www.businesswire.com/news/home/20171107005756/en/