28th Aug 2019 10:31
(Alliance News) - Armadale Capital PLC on Wednesday announced more good test results from its Mahenge Liandu graphite project in Tanzania.
Shares in Armadale were up 3.6% at 1.45 pence in London in morning trade.
The company said the latest assay results confirm the "extremely high-grade near surface mineralisation" already identified at the project. These areas can be the target of initial mining with reduced extraction costs and a better earnings before interest, depreciation, taxation, and amortisation margin.
Armadale currently predicts increase production at Mahenge Liandu, based on the 400,000 tonnes per annum targeted throughput of ore under evaluation in the definitive feasibility study.
Latest results from near-surface assayed intercepts includes 8 metres at 21% total graphitic carbon from 13 metres and 4 metres at 23% total graphitic carbon from 36 metres.
Armadale said "encouraging results" form part of a broader high-grade mineralisation zone including 35 metres at 13% total graphitic carbon from surface, and there are "wide zones of high-grade near surface mineralisation" exceeding the 13% threshold used in the scoping study.
Armadale Director Nick Johansen said: "We are delighted with the further exceptionally high-grade assay results, especially as the drill campaign was focused on the initial pit area and has provided data to allow us to define the optimal mine design. The tenor of the mineralisation in this area and the exceptionally high near surface grade is an extremely strong boost for the project as we move along its development pathway.
"Our work continues at pace as we accelerate the transition from explorer to emerging miner. We believe recent news has demonstrated the enhanced commercial viability of the Mahenge Liandu project which, with a high-grade JORC compliant indicated and inferred mineral resource estimate of 51.1 million tonnes at 9.3% [total graphitic carbon], is already one of the largest high-grade resources in Tanzania. We look forward to providing further updates as we continue to meet significant milestones in the project's development."
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