8th Aug 2019 12:11
(Alliance News) - Armadale Capital PLC on Thursday revealed "high purity results" from testing at the Mahenge Liandu graphite project in Tanzania.
Shares in the resource project investor were up 10% at 1.38 pence shortly on Thursday at midday.
Results from the ongoing testwork included "96.8% for jumbo size graphite flakes, 97.1% for large and 97.1% for medium flake sizes". All of these results beat the 95% average used for the scoping study of the project.
These results, Armadale said, mean "premium purity graphite concentrates", those above 95%, can be produced from Mahenge Liandu, prices for which are "materially higher than the standard grade" below 95%.
More optimisation work is taking place, all of which will become part of a feasibility study on the project.
Armadale Non-Executive Director Nick Johansen said: "As we move to gain greater traction with prospective Chinese off-take and project finance partners, it is extremely pleasing to verify high-purity graphite concentrates can be consistently produced from the Mahenge Liandu project.
"The ability to deliver a premium product to fast-growing end markets such as lithium-ion batteries clearly enhances the project's overall economics at a time when we are steadily progressing from explorer to emerging producer," he added.
"The board looks forward to further updating shareholders as progress executing the business plan in the lead up to the definitive feasibility study being finalised towards year-end."
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