Armadale to Speed Up Commercialization at Mahenge Graphite Project

Armadale Capital plc (LSE:ACP) announced plans to accelerate the commercialization of its Tanzania-based Mahenge graphite project prior to the release of a definitive feasibility study in Q4.

As quoted in the press release:

• Key meetings with current / prospective Chinese off-take and project finance partners are scheduled for early June. The intention is to progress with binding agreements as part of the Board’s intent to accelerate commercialisation plans
• Continue a thorough review of graphite plant design with a capacity of 400 Kilo-Tonnes Per Annum (‘ktpa’) progressing with experienced Chinese partners to ensure highly optimal and efficient facility
• The Mahenge Liandu DFS remains on track for completion by year end and will now incorporate current engineering, procurement and construction (“EPC”) pricing of the plant
• A graphite resource update is underway, which incorporates positive results of infill drilling, and targeted to complete by end-June 2019
• Rigorous testing of ground water suitability for general use at the mine and in the processing circuit is nearing finalisation
• Incremental metallurgical test-work on fresh samples from Mahenge Liandu is underway in Perth, Australia. These incorporate the production of high purity concentrates to maximise the value of the resource
• Active local community engagement continuing including extensive local school and well-being services initiatives

Nick Johansen, director of Armadale, commented:

Looking beyond the completion of the DFS, which is targeted for year-end, the Board is now focused on fast-tracking the various work streams critical to bringing the Mahenge Liandu Graphite Project into commercial production.

Our most important task is to ensure that a high-purity graphite product, which attracts a material price premium, can be consistently produced. This will deliver greater visibility of the true value of the Project to our potential Chinese partners which will in turn further support the significant progress being made to sign binding off-take and project finance agreements as soon as practical.

In tandem, the team are finessing details for the processing plant, which has an initial capacity of 400ktpa, and at the same time are ensuring ground-water suitability at site. Most importantly, we are ensuring our traction with the local community at Mahenge Liandu remains strong, as their ongoing support is critical to commissioning the Project.

We look forward to providing shareholders with further regular updates as the Board moves to fast-track efforts towards transitioning from explorer towards emerging miner.

Click here to read the full Armadale Capital plc (LSE:ACP) press release.