TIDMACP
Armadale Capital Plc / Index: AIM / Epic: ACP / Sector:
Investment Company
11 November 2019
Armadale Capital Plc ('Armadale' or 'the Company')
Mine Design & Project Engineer Site Visit Update
Armadale Capital plc (LON: ACP), the AIM quoted investment group
focused on natural resource projects in Africa, is pleased to
confirm that the mine design for the Mahenge Liandu Graphite
Project ('Mahenge Liandu' or 'the Project') is now being finalised
for inclusion in the Definitive Feasibility Study ("DFS") following
a site visit by the Project engineer.
Highlights:
-- Comprehensive site visit undertaken by the Project engineer tasked
with designing the graphite mine
-- Mine design to be optimised to ensure high grade areas are targeted
first ensuring stronger cashflow generation in the early
years
-- Project engineer has reviewed the site layout to garner a primary
understanding of the logistics, terrain and route to market
-- Meetings undertaken with mining contractors, third party suppliers and
logistics operators to ensure seamless route to transport
graphite
concentrate to port
-- Important discussions held with local communities and their leaders,
who remain very positive on the Project as well as viewing
the
facilities available to house visiting contractors
-- All assumptions for the DFS have now been stress tested and verified
Nick Johansen Director of Armadale said: "Over the past six
months, significant progress has been made defining a high-grade
resource, completing MOUs and progressing the commercialisation
strategy. With our funding position now secure, the Board is
delighted to continue progressing Armadale's ongoing transition
from explorer to emerging producer.
"The site visit by the Project engineer tasked with designing
the mine is a key milestone as it signifies the concept is moving
towards reality and is an important step as we finalise the
Project's DFS.We are now looking beyond the completion of the DFS
to focus on the commercialisation strategy in order to deliver a
high-quality graphite product to our off-take partners.As part of
this process, the Board has been increasingly focused on project
infrastructure and ensuring all the elements necessary to commence
mining operations in a timely manner are in place.
"I would like to take this opportunity to thank our shareholders
for their continued support and I look forward to providing them
with further updates in respect of the Project DFS completion and
commercialisation."
FURTHER INFORMATION
TheMahenge Liandu Graphite Project, Tanzania
Armadale's wholly-owned Mahenge Liandu Graphite Project, located
in a highly prospective region in Tanzania, and has a high-grade
JORC compliant inferred, indicated and measured mineral resource
estimate announced October 2019 - 59.5Mt at 9.8% TGC. This includes
15.90Mt inferred at 9.75% TGC, 32.06Mt indicated at 9.58% TGC and
11.52MT measured at 10.54% TGC making it one of the largest
high-grade resources in Tanzania.
Most recently, a site visit was undertaken by the Project's
engineer, who was tasked with designing the graphite mine and
optimising it to ensure high grade areas are targeted first to
ensure stronger cashflow generation in the early years.
Accordingly, the engineer has reviewed the site layout to garner a
primary understanding of the logistics, terrain and route to
market. Additionally, meetings were undertaken with mining
contractors, third party suppliers and logistics operators to
ensure a seamless route to transport graphite concentrate to port.
Key discussions have also been held with local communities and
their leaders, who remain very positive on the Project, and the
facilities available to house visiting contractors working on the
Project have been viewed.
Previous work at the Project 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.
Currently, Armadale is completing a DFS based on the results of
a Scoping Study that was completed in March 2018. The study was
based on a throughput of 400,000tpa over a 32-year mine life and
showed that the Project has robust economics and warrants further
development. It also verified the Project could produce a coarse
flake, high-purity graphite product underpinning a compelling
business case to progress commercialisation plans, highlighting the
following key metrics:
-- Producing an average of 49,000tpa of high-quality graphite products
for a 32-year mine life;
-- The near surface nature of the deposit produced a low 1:1 strip ratio
for the life of the mine;
-- The Project has a low operating cost of US$408/t, based on an average
12.5% TGC life of mine grade;
-- The Project has a pre-tax IRR of 122% and NPV of US$349m, with a low
development capex of US$35m; and
-- The maximum draw-down during the construction of the Project is
US$34.9m and the after-tax payback period is 1.2 years.
There remains significant scope to further improve returns, with
staged expansions as the current mine plan is based on circa 25% of
the total resource.
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:
Armadale Capital Plc +44 (0) 20 7236 1177
Paul Johnson, Non-Executive Director (UK)
Tim Jones, Company Secretary
Nomad and broker: FinnCap Ltd +44 (0) 20 7220 0500
Christopher Raggett / Simon Hicks
Joint Broker: SI Capital Ltd +44 (0) 1483 413500
Nick Emerson
Press Relations: St Brides Partners Ltd +44 (0) 20 7236 1177
Isabel de Salis / Beth Melluish
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 Indicated and inferred mineral resource estimate of
59.48Mt @ 9.8% TGC, making it 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/20191111005213/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
November 11, 2019 04:25 ET (09:25 GMT)
Grafico Azioni Armadale Capital (LSE:ACP)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Armadale Capital (LSE:ACP)
Storico
Da Apr 2023 a Apr 2024