Armadale closes Mahenge graphite deal
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Armadale Capital (AIM:ACP) has formally completed its acquisition of the Mahenge graphite project, and is targeting a maiden resource before the year is out.
Having previously conducted due diligence work at the Tanzanian graphite project, it has decided to move ahead with the acquisition of the project from Graphite Advancement Tanzania – having signed a heads of agreement to do so in June.
ACP said that it chose to move ahead with the acquisition on the back of positive rock chip results, reported in late June.
ACP told its investors at that stage that some rock chips had come back at up to 33.8%. The positive results led the company to declare that it would more than likely move ahead with the acquisition.
“Graphite has been identified and prioritised by the Armadale team as a high demand commodity with significant strategic value as an essential component of the modern lithium-ion battery,” chairman Peter Marks said earlier this week.
“The Liandu project provides Armadale with ground-floor access to this rapidly growing market whilst limiting exploration risk, due to the project’s location in a premier graphite bearing region, which includes being contiguous to well established high grade graphite projects.”
Marks also said that the company would aim to start drilling in the coming weeks with an eye towards a maiden resource by the end of the year.
The project itself is next door to Black Rock Mining’s (ASX:BKT) Mahenge project, which has a resource of 131 million tonnes @ 7.9% TGC.
It is also next to Kibaran Resources’ (ASX:KLN) Epanko Project, with a bankable feasibility study done in 2015 finding the project had proven and probable ore reserves of 10.9Mt @ 8.6% TGC.
On Armadale Capital and Liandu
Mahenge Liandu Project, which consists of two tenements covering 29.9 km2, adjacent to the town of Mahenge.
Reconnaissance mapping done late last year defined a mineralized trend at the project of more than 1.5 km in strike length and up to 500m in width.
From this initial mapping, ACP has been able to obtain some initial drill hole data as an indicator of future potential.
Three RC drill holes drilled late last year by the previous vendors showed intercepts of 24m @ 12.9% TGC, 5m @ 21.5% TGC and 10m @ 6.54% TGC.
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