16th Jul 2019 10:49
(Alliance News) - Armadale Capital PLC said Tuesday it has continued to advance commercialisation plans for the Mahenge Liandu graphite project in Tanzania, while metallurgical test-work progresses in line with expectations.
The natural resources investor said that initial metallurgical test work results from the flotations stage reveal solid graphite recovery up to 95% of total graphitic content, consistent with company expectations.
Incremental test-work conducted to enhance the quality of final graphite concentrate product are progressing well, Armadale said, with premium purity levels targeted to be in the 95% to 97%.
Armadale's review of legacy rainfall data has indicated that Mahenge Liandu will have ample surface water to construct and operate the mine and processing plant, reducing the need for more costly ground water.
Armadale is currently in the process of completing a definitive feasibility study for the project based on the results from a scoping study completed in March 2018.
Highlights from the study includes the capability to produce an average of 49,000 tonnes per annum in graphite for a 32-year mine life, with a pretax net present value of USD349 million.
"With many moving parts critical to developing a seamless value chain for the Mahenge Liandu project, it is pleasing to receive metallurgical test-work that is progressing to plan and with results in line with expectations. This will augur favourably as we move more proactively to secure binding off-take commitments and project level financing from our Chinese partners," said Director Nick Johansen.
Shares in Armadale Capital were down 6.4% at 1.10 pence on Tuesday in London.
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