AMN - TANZANIA: High grades confirmed at Mahenge Liandu

Armadale Capital's diamond drilling campaign at the Mahenge Liandu Graphite Project in Tanzania has confirmed high-grade near-surface mineralisation. Assays from this campaign have returned up to 5 metres at 19.8% total graphite content (TGC) from 1-metre.

Other results include 14 metres at 14.3% TGC from 22 metres, 8 metres at 15.3% TGC from 7 metres and 7 metres at 16.2% TGC from 22 metres.

The diamond results are consistent with findings from a recently concluded reverse circulation (RC) drilling campaign.

Combined with the RC drilling results, the company's geological team is confident it now has sufficient data points to fully define a JORC-compliant mineral resource update.

This update is expected to underpin an initial 10-15-year mine life in respect of only 25-30% of the mineralised ground tested by drilling and incorporated within the resource.

The existing JORC-compliant indicated and inferred mineral resource estimate for the project stands at 51.1 million tonnes at 9.3% TGC, including 38.7 million tonnes in the indicated category at 9.3% and 12.4 million tonnes at 9.1% TGC in the inferred category.

The drill results positively impact on the project’s economics and forward commercialisation plans which, as with recent metallurgical results, are key to discussions in respect of further offtake and project-level financing agreements with Chinese partners.

Mahenge Liandu is in a highly prospective region of southeast Tanzania.

Armadale is completing a definitive feasibility study based on the results of a scoping study completed in March 2018, which was based on an annual throughput of 400,000 tonnes over a 32-year mine life.

The study verified that the project could produce a coarse flake, high-purity graphite product

Armadale director Nick Johansen said: “These latest drilling results clearly enhance Mahenge Liandu’s already favourable economics and provide valuable data as we move towards conclusion of the updated mineral resource.

"Based on the results of diamond and RC drilling programs, we are confident the mineral resource will confirm that in Mahenge Liandu, we have a strategically important project that is well placed to become a leading supplier of high-value graphite products for many years to come.

“As we advance towards the final stages of the DFS, strategically the Board is thinking beyond completion to the important next steps to accelerate the delivery of a first-rate graphite project.

"Notably, we are focusing more definitively on our commercialisation plans, especially offtake and project level finance agreements, to ensure the transition from explorer to emerging producer continues to gain momentum.”

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