27th Mar 2018 12:48
Armadale shares were trading at
The Mahenge Liandu graphite project is in south-eastern
The scoping study was completed on a 400,000 tonne of ore per year throughput, producing an average of 49,000 tonnes of "high-quality" graphite products a year for its 32 year life of mine
The project, Armadale said, has a low operating costs at
Armadale said it has "one of the highest grade large-flake deposits globally" after a recent upgrade to 51.1 million tonnes at 0.3% total graphitic carbon, which includes 38.7 million tonnes of indicated resource at 9.3% total graphitic carbon and 12.4 million tonnes at 9.4%.
These results will be used for a feasibility study for Mahenge Liandu, leading a decision on whether to start mining which will be taken in early 2019.
Director Nick Johansen said: "We have long held confidence in the commercial potential and economic value of Mahenge and the results of this scoping study greatly reinforces this view. The project's net present value of
"With an IRR of 122%, 1.2 year payback and low development costs, we firmly believe that Mahenge is an attractive asset for development. Crucially, the scoping study was limited to just 25% of the project's current resource, which forms stage one of a planned staged development programme. Accordingly, with an upgrade in throughput there is significant potential to improve the project economics even further," Johansen added.
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