Excellent Drilling Results Continue at Mahenge Liandu

LONDON--(BUSINESS WIRE)--

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

Excellent Drilling Results Continue

at Mahenge Liandu

Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce the results of a recent 1,500m 28-hole reverse circulation drill programme completed at the Mahenge Liandu Graphite Project in Tanzania (‘Mahenge Liandu’).

Overview

• Wide high-grade mineralisation consistently intersected from shallow, near surface depths, with thick graphite intersected in 24 of the 28 holes completed
• Numerous holes returned exceptionally high-grade intercepts, making Mahenge Liandu one of the highest-grade graphite deposits in Tanzania, with results including:
  • 6m @ 12.8% Total Graphitic Content (‘TGC’) from surface
  • 14m @ 16.7% TGC from 2m
  • 15m @ 14% TGC from surface
  • 11m @ 14.8% TGC from 15m
  • 10m @ 18.5% TGC from 16m
• Drill results expected to support an increase in the quantum and confidence category of the maiden JORC Resource estimate of 40.9Mt at 9.41% TGC – resource update expected by the end of the year
• Significant further upside remains - drilling focused on 1,200m strike length, however the deposit remains open in most directions
• Metallurgical test-work has confirmed the mineralisation responds well to conventional floatation circuits and can produce concentrate purity well above industry benchmarks
• Definitive Feasibility on track to be completed in Q2 2018 – targeting a 400,000tpa operation with a head grade of 10-15% TGC

Nick Johansen, Director of Armadale said: “The current resource is one of the largest high-grade deposits in Tanzania and work to date has demonstrated Mahenge Liandu’s potential as a commercially viable deposit thanks to its significant tonnage, high-grade coarse flake and near surface mineralisation, which is contained within one contiguous ore body. Crucially, we continue to see significant potential within the asset, and the results from the recent drill work are testament to this. With highs of 18.5% TGC and wide zones of mineralisation identified typically averaging 8-10% TGC, we are very excited for the imminent increase in JORC resource, which we expect to be in a position to deliver by the end of the year.”

Feasibility study

The near surface high grade zones confirmed by the current round of drilling points towards cost effective production of a premium graphite product for sale to the market and is further validation of the Company’s two stage development plan. The Company anticipates being able to complete a 400,000tpa feasibility study in Q2 2018 as we continue to develop the world class Mahenge Liandu project through to production. We look forward to further significant updates to the market over the coming months

RC Drilling Programme Assay Results

The drilling was carried out on a 200m by 80m pattern over a strike length of 1,200m with a total of 27 holes completed. The results confirm consistent zones of mineralisation staring from at or near surface typically 8-10% TGC.

Table 1 Graphite Assay Results from the 2017 drilling programme

Hole ID	Easting	Northing	Max Depth	From	To	width	TGC %
LDRC0022	251,673	9,035,201	65	0	58	58	7.4
inc				0	6	6	12.8
inc				51	55	4	15.9
LDRC0023	251,855	9,035,275	51	0	41	41	10.6
inc				10	14	4	14.9
inc				29	33	4	15.5
inc				35	41	6	14.3
LDRC0024	251,821	9,035,352	33	0	27	27	9.1
inc				0	8	8	11.5
LDRC0025	251,887	9,035,209	34	0	28	28	12.3
inc				2	16	14	16.7
LDRC0026	251,785	9,035,419	63	0	46	46	8.2
inc				0	15	15	14
LDRC0027	251,758	9,035,495	63	0	16	16	8.1
and				27	40	13	8
and				43	52	9	8
LDRC0028	251,938	9,035,596	41	0	20	20	9.4
inc				0	13	13	10.6
LDRC0029	251,971	9,035,522	50	7	37	30	9.5
inc				15	26	11	14.8
LDRC0030	251,909	9,035,660	19				NSI
LDRC0031	252,014	9,035,450	63	4	8	4	4.2
and				20	25	5	7.7
and				34	57	23	12.5
inc				46	57	11	17.5
LDRC0032	252,046	9,035,364	57	16	26	10	18.2
and				36	46	10	6.9
LDRC0033	251,726	9,035,576	61	44	54	10	4.3
LDRC0034	251,694	9,035,642	48				NSI
LDRC0035	251,653	9,035,504	74	44	68	24	6.9
inc				58	63	5	14.5
LDRC0036	251,620	9,035,351	33	1	10	9	10.1
LDRC0037	251,642	9,035,283	69	3	15	12	13.8
inc				3	9	6	17.5
and				44	57	13	9.8
LDRC0038	251,588	9,035,433	63	40	53	13	11.4
LDRC0039	251,461	9,035,183	66	25	45	20	10.2
inc				27	36	9	15.8
LDRC0040	251,432	9,035,265	56	16	20	4	8.5
LDRC0041	251,395	9,035,330	79	17	38	21	11.5
inc				26	36	10	15.2
LDRC0042	251,494	9,035,112	60	30	41	11	11.5
inc				36	41	5	14.8
LDRC0043	251,527	9,035,039	33				NSI
LDRC0044	251,566	9,034,969	93	45	86	41	6.8
inc				45	48	3	14.9
LDRC0045	251,600	9,034,897	50				NSI
LDRC0046	251,268	9,035,127	105	3	13	10	17.9
and				20	25	5	14.2
and				34	50	16	6.7
LDRC0047	251,295	9,035,059	58	9	17	8	10.8
and				49	55	6	12
LDRC0048	251,018	9,035,201	20	2	6	4	15.9
LDRC0049	251,357	9,034,984	67	44	52	8	13.5

The information in this announcement that relates to exploration results is based on information compiled by Mr Matt Bull, a competent person, who is a Member of the Australian Institute of Geoscientists. Mr Bull has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a competent person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Bull consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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**

Enquiries:
Armadale Capital Plc Tim Jones, Company Secretary	[phone]
Nomad and broker: finnCap Ltd Christopher Raggett / Simon Hicks	[phone]
Joint Broker: Beaufort Securities Limited Jon Belliss	[phone]
Press Relations: St Brides Partners Ltd Susie Geliher / Charlotte Page	[phone]

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 inferred mineral resource estimate of 40.9Mt @ 9.41% TGC. At least 32Mt of this resource has an average grade of 10.47% TGC, 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

LEI: 213800495EK876JETD10

Classification: 3.1. Additional regulated information required to be disclosed under the laws of a Member State

Category Code: MSCU

Sequence Number: 635400

Time of Receipt (offset from UTC): 20171107T082537+0000