25th Jun 2019 10:58
(Alliance News) - Armadale Capital PLC said Tuesday it has received "exceptionally" high-grade assay results from its wholly-owned Mahenge Liandu graphite project in Tanzania.
The natural resource investor said the results "validate" the commercialisation plans the company has put in place for the project.
"Transitioning from explorer to emerging miner is now the board's core focus in the lead up to completion of the definitive feasibility study and beyond. Consequently, we are delighted that the first four assay results from the current reverse circulation drilling programme demonstrate exceptional grades with near surface large mineralised intercepts. The immediate takeaway is two-fold: firstly, higher than average grade; and secondly, the potential for low extraction costs given the mineralisation is near surface," said Non-Executive Director Nick Johansen.
The results from the definitive feasibility study are expected in the fourth quarter of 2019.
The first four holes in the 18-hole programme showed 7 metres at 16.9% total graphite content from 31 metres, 7 metres at 16.8% total graphite content from surface and 9 metres at 14.8% total graphite content from surface.
Johansen added: "The results received to date continue to point to a potentially viable graphite mine and verify the board's commercialisation plans which are progressing positively. As such, we look forward to further updating the market as we accelerate our plans to commission the Mahenge Liandu graphite project."
Shares in Armadale Capital were up 6.5% Tuesday at 1.36 pence each.
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