Armadale closes Mahenge graphite deal

Published at Jul 12, 2016, in Mining

Finfeed presents this information for the use of readers in their decision to engage with this product. Please be aware that this is a very high-risk product. Getting mining projects up and running in countries such as Tanzania is no simple feat, and there may be challenges ahead. Seek professional financial advice.

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.

A map showing ACP's project

A map showing ACP’s project

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.

tags

Graphite

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.