26th Oct 2016 09:19
LONDON (Alliance News) - Armadale Capital PLC saw shares rise on Wednesday after confirming the vast majority of the holes drilled on the Mahenge Liandu project in Tanzania intersected high grade, coarse flake graphite mineralisation.
Armadale shares were up 17% to 3.66 pence per share on Wednesday morning, building on some very substantial gains made over the last month. Shares are trading 87% higher than 30 days ago and, since the start of 2016, shares are up 16%.
Of the 21 holes drilled, 18 holes have been logged as intersecting high grade mineralisation over a 2.0 kilometre strike length, with all the graphite lying near to the surface, implying the cost of extraction will be minimal - welcome news for any miner.
The drilling programme was completed on time and on budget and has been followed by metallurgical testwork that is now underway. Results are "due shortly," the miner said, with expectations that a new resource can be established before the end of 2016.
Armadale said Black Rock Mining, an Australian-listed firm operating a neighbouring project, has a resource of 131.0 million tonnes at 7.9% graphite content whilst another Australian firm operating nearby, Kilbaran Resources, has a resource of 10.9 million tonnes at a grade of 8.6%.
"The board is now formulating Armadale's marketing and supply chain strategy to ensure it is well positioned to capitalise on strong demand for natural graphite in varied applications such as lithium-ion batteries, fire retardant building materials, carbon composites and graphene," said the miner.
By Joshua Warner; [email protected]; @JoshAlliance
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