Full Assay Results Confirm Exceptional High-Gra...

Full Assay Results Confirm Exceptional High-Grade Graphite Deposit across 2.5km Strike Area, Mahenge Liandu, Tanzania

Armadale Capital Plc

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

Full assay results confirm exceptional high-grade graphite deposit across 2.5km strike area,

Mahenge Liandu, Tanzania

Armadale, the AIM quoted investment company focused on natural resource projects, is delighted to announce the remaining assay results from the 2016 drilling campaign at the Mahenge Liandu Graphite Project in Tanzania (‘Mahenge Liandu’ or ‘the Project’), which have demonstrated consistent, commercially viable, high-grade graphite mineralisation of up to 15.7% Total Graphitic Carbon (‘TGC’) commencing from or near the surface.

A new corporate presentation, providing further information on the Company’s investment portfolio, will be uploaded to the Company’s website www.armadalecapitalplc.com later today.

Summary:

• Remaining assay results returned from the 2016 drilling campaign at Mahenge Liandu confirmed thick interceptions of high-grade coarse flake graphite across the entire 2.5km mineralised strike area;
• High grades and intervals up to 63m returned, including:
  • LDRC00013, 63m @ 7% TGC from 0m, including 16m @ 15.7% TGC
  • LDRC00015, 7m @ 11.8% TGC from 0m
  • LDRC00017, 44m @ 10.1% TGC from 0m including 21m @ 12.9% TGC
  • LDRC00018, 17m @ 7.9% TGC from 0m including 9m @ 11.5% TGC
  • LDRC00020, 13m @ 9.8% TGC from 0m
  • LDRC00021, 15m @ 10.5% TGC from 1m including 3m @ 9.6% TGC;
• Successful drilling programme returned an average grade of 9.3% TGC commencing from or near the surface, implying low extraction costs;
• All inputs to model the JORC compliant resource estimate are now received and the Directors believe feedback continues to indicate a substantial graphite resource should be confirmed by the end of Q4 2016;
• Metallurgical test-work, which will indicate the quality of the final product, is ongoing with results expected to be finalised in Q1 2017; and
• All drilling and test results have been completed on time and within budget.

William Frewen, Chairman of Armadale said:

“The full assay results mark the completion of an important milestone at Mahenge Liandu. With an exceptional average grade of 9.3% TGC and intervals up to 63m from or near the surface, the Board expects resource modelling to confirm the presence of a substantial JORC compliant graphite resource, which we hope to be in a position to publish later this year.

“At the macro level, recent news flow out of China has confirmed that the acceleration away from fossil fuels towards renewables is progressing faster than initially anticipated. More encouragingly is the prospect that the global uptake of renewables, particularly wind and solar, could outpace the International Energy Agency’s medium term 13% annual forecast for 2015-21. These developments further reinforce the prospect of strong future demand for natural graphite from lithium-ion battery manufacturers, which will be Armadale’s primary target market.”

Table 1: Full drill Intercepts from 2016 drilling campaign at Mahenge Liandu

HoleID	Â	Easting*	Â	Northing*	Â	Max Depth (m)	Â	Azimuth (deg)	Â	Inclination (deg)	Â	Total Min interval	Â	From (m)	Â	To (m)	Â	TGC (%)
LDRC0001		250,429		9,033,616		49		270		-62		8		32		40		3.0
LDRC0002		250,661		9,034,019		28		270		-62		10		0		10		6.5
LDRC0003		250,605		9,034,006		61		0		90		60		1		61		10.7
LDRC0004		251,756		9,035,049		55		325		-60		42		1		43		10.2
LDRC0005		251,817		9,034,907		51		325		-60		10		0		6		2.0
LDRC0006		252,077		9,035,279		22		325		-60		1		0		1		6.3
LDRC0007		251,790		9,034,981		40		325		-60		32		6		38		9.3
LDRC0008		251,717		9,035,122		64		325		-60		47		3		50		7.4
inc		Â		Â		Â		Â		Â		9		3		12		11.6
inc		Â		Â		Â		Â		Â		14		36		50		10.0
LDRC0009		252,185		9,035,063		30		325		Â		NSI		Â		NSI		Â
LDRC0010		252,140		9,035,134		16		325		Â		NSI		Â		NSI		Â
LDRC0011		251,457		9,034,750		22		325		Â		NSI		Â		NSI		Â
LDRC0012		251,377		9,034,908		16		325		-60		NSI		Â		NSI		Â
LDRC0013		251,163		9,034,907		73		325		-60		63		0		63		7.0
inc		Â		Â		Â		Â		Â		16		0		16		15.7
LDRC0014		251,092		9,034,963		50		325		-60		6		0		6		3.8
inc		Â		Â		Â		Â		Â		5		10		15		4.6
inc		Â		Â		Â		Â		Â		8		31		39		6.8
LDRC0015		251,036		9,035,126		31		325		-60		7		0		7		11.8
LDRC0016		251,059		9,035,032		34		325		-60		NSI		Â		Â		Â
LDRC0017		250,703		9,034,110		53		325		-60		44		0		44		10.1
inc		Â		Â		Â		Â		Â		21		8		29		12.9
LDRC0018		250,681		9,034,181		26		325		-60		17		0		17		7.9
inc		Â		Â		Â		Â		Â		9		1		10		11.5
LDRC0019		250,858		9,034,673		37		325		-60		NSI		Â		Â		Â
LDRC0020		250,881		9,034,589		40		325		-60		13		0		13		9.8
LDRC0021		250,885		9,034,538		34		325		-60		15		1		16		10.5
Â		Â		Â		and		Â		Â		3		21		24		9.6

*UTM ARC 1960 Zone 37S

Conclusion

The Board of Armadale is delighted to have received the assays from all holes that have been drilled. Importantly the exploration programme has been completed on time and on budget. The Board now looks forward to reporting Armadale’s maiden JORC resource from the Mahenge Liandu Graphite Project in Tanzania in the coming weeks.

Competent Person statement

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	Â
Armadale Capital Plc Charles Zorab, 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 Charlotte Page / Susie Geliher		[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 proven coarse flake, high grade graphite.

Other assets Armadale has an interest in include the Mpokoto Gold project in the DRC and a portfolio of quoted investments.

More information can be found on the website www.armadalecapitalplc.com

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