LONDON–(BUSINESS WIRE)– 

Armadale Capital Plc (‘Armadale’ or ‘the Company’)

Test work produces 97% TGC concentrates

Armadale Capital plc (LON: ACP), the AIM quoted investment group focused on natural resource projects in Africa, is pleased to provide positive results from the met test work programme completed as part of the ongoing Definitive Feasibility Study (‘DFS’) at the Mahenge Liandu Graphite Project (‘Mahenge’ or ‘the Project’) in south-east Tanzania, which is at the heart of the group’s transformation from explorer to emerging producer. The met test work has been undertaken by Bureau Veritas in Perth.

Highlights

• Met test work confirms Mahenge can produce high quality, high purity graphite, with conventional technology achieving consistent purity of above 97% TGC, some of the highest grades in the sector
• Large proportion of concentrates in the medium size fractions, ideally suited to the battery market
• Coarser grind sizes can retain a larger proportion of larger flake sizes, suited to the expandable and graphite foil markets
• Results are typical of the high purity smaller and medium flake size in the Mahenge graphite province
• Results will feed into the DFS, which is on track to be released by the end of March to build upon the March 2018 Scoping Study results, which delivered a compelling NPV of US$349m and an IRR of 122%

Armadale Chairman, Nick Johansen, said: “Being able to produce such exceptional purity graphite concentrates with results over 97% is a key milestone for the Company and further confirms our long-held confidence in the commercial value and economic potential of Mahenge. Furthermore, high purity graphite concentrates are hugely important in the rapidly expanding EV market, which is expected to be the main source of growth in the demand for graphite over the coming years. Despite the unprecedented global challenges we are all currently facing as a result of the COVID-19 pandemic, we remain focussed on finalising the results of the DFS. Naturally, ensuring the safety of our team is our primary responsibility, but as most of our work currently comprises desktop studies and the processing of results from previous fieldwork we have been able to progress these activities remotely. We look forward to updating shareholders on the DFS results imminently.”

Further Information

Armadale’s wholly-owned Mahenge Liandu Graphite Project is located in the Mahenge province – a world-class graphite region. It has a high-grade JORC compliant indicated and inferred mineral resource estimate announced February 2018 – 59.5Mt at 9.8% TGC. This includes 11.5Mt @ 10.5% Measured 32.Mt Indicted at 9.6% and 15.9Mt at 9.8% TGC, making it one of the largest high-grade resources in Tanzania.

Work to date has demonstrated the Project’s potential as a commercially viable deposit, with significant tonnage, high-grade coarse flake and near surface mineralisation (implying a low strip ratio) contained within one contiguous ore body.

Currently, Armadale Capital is completing a DFS based on the results of a Scoping Study that was completed in March 2018. The study was based on a throughput of 400,000tpa over a 32-year mine life and demonstrated exceptional project economics with a compelling NPV of US$349m and an IRR of 122% and significant capacity for positive improvement as the current mine plan is based on circa 25% of the total resource. Since this time, incremental improvements have been successfully delivered giving the company increased confidence in the economics of the project.

Following completion of the met test-work programme by Bureau Veritas in Perth the Company is pleased to report that representative high-grade core samples have been returned showing increased grinding consistent purity of above 97%. High purity is important in the rapidly expanding EV market, which is expected to be the main source of growth in the demand for graphite over the coming years.

Result of Test Work Programme

Results of the latest test work programme conducted by Bureau Veritas are shown in Table 1 with consistent grades over 97% for the small, medium large and jumbo size fractions.

Table 1 – Concentrate distribution of high-grade composite

Table 2 shows typical graphite flake size distribution across the deposit with a slightly larger flake size distribution. Currently most graphite is sold based on +95% TGC grades.

Table 2 – Typical concentrate flake size distribution with purity >95%

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

**ENDS**

Notes

Armadale Capital Plc is focused on investing in and developing a portfolio of investments, targeting the natural resources and/or infrastructure sectors in Africa. The Company, led by a team with operational experience and a strong track record in Africa, has a strategy of identifying high growth businesses where it can take an active role in their advancement.

The Company owns the Mahenge Liandu graphite project in south-east Tanzania, which is now its main focus. The Project is located in a highly prospective region with a high-grade JORC compliant Indicated and inferred mineral resource estimate of 59.48Mt @ 9.8% TGC, making it one of the largest high-grade resources in Tanzania, and work to date has demonstrated Mahenge Liandu’s potential as a commercially viable deposit with significant tonnage, high-grade coarse flake and near surface mineralisation (implying a low strip ratio) contained within one contiguous ore body.

Other assets Armadale has an interest in, include the Mpokoto Gold project in the Democratic Republic of Congo and a portfolio of quoted investments.

More information can be found on the website www.armadalecapitalplc.com.