REG - Armadale Capital PLC - Advancing Mining Lease and Expanded Footprint

Armadale CapitalAnnouncement

08/02/2022 08:15

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RNS Number : 0146B  Armadale Capital PLC  08 February 2022

Armadale Capital Plc / Index: AIM / Epic: ACP / Sector: Investment Company

 

8 February 2022

 

Armadale Capital Plc

('Armadale' the 'Company' or the 'Group')

Advancing Mining Lease and Expanded Footprint

Armadale, the AIM quoted investment company focused on natural resource
projects in Africa, is pleased to announce that it has made further progress
developing the mining lease at the Mahenge Liandu Project in Tanzania, as part
of ongoing plans to hasten the road to commissioning commercial operations.
Furthermore, the Board has applied for three incremental exploration licences
which are prospective for graphite mineralisation and materially enhance the
Mahenge Liandu Project's exploration potential.

Mining Lease

The Board has advanced the development of the mining lease at the Mahenge
Liandu Project on several fronts, which collectively aid progressing the path
towards commercial operations. This includes the following areas:

Ø Environmental compliance: To ensure compliance with environmental criteria,
the team in Tanzania have installed several instruments for monitoring weather
conditions and surface water events. The resultant data will be used in
various environmental monitoring studies.

Ø Geotechnical studies: These are now underway, as the team has identified
the location of several geotechnical holes. Currently, a bulldozer is being
mobilized to site to commence clearing the pads.

Ø Ground water monitoring: This dovetails in with the completion of the
geotechnical pads, as boreholes for ground water monitoring have already been
identified. The next phase is to complete clearing the drill-pads so that once
the environmental studies are completed, the ground water monitoring boreholes
can be drilled.

Ø Early Works Development Program: The ongoing work program is focused on
planning the early works construction phase of the project development, to
allow for a faster development time as funding is secured.

Ø Project economics and free carry interest: A local private consultancy,
Above Ground Advisory, has been engaged to initiate talks with the Tanzanian
government to progress the economics and free carried interest of the Mahenge
Liandu Project.

 

Enlarged Footprint

To ensure Armadale has the potential ability to scale up the Mahenge Liandu
Project, the Board has applied for three incremental exploration licences,
which lifts the total to four across 177.8 sq km (from 28.4 sq km previously).
Two of the licences are contiguous to the Mahenge Liandu Project, while the
third is circa 15km south. Encouragingly, all of the new ground captured by
the licences is highly prospective for graphite mineralisation and
significantly elevates Armadale's exploration potential in Tanzania.

Nick Johansen, Director of Armadale, said: "Our vision to become a significant
low-cost graphite producer in Tanzania continues to take shape having secured
the mining lease in September 2021. We are steadily making progress with all
necessary regulatory requirements as we push ahead with plans to commence
commercial mining operations in a timely manner. Concurrently, we are thinking
beyond the horizon and have expanded the footprint significantly which
collectively enhances Armadale's overall exploration potential in
Tanzania."

 

 Enquiries:
 Armadale Capital Plc                                     +44 (0) 20 7236 1177

 Nick Johansen, Chairman

 Tim Jones, Company Secretary
 Nomad and Broker: finnCap Ltd                            +44 (0) 20 7220 0500

 Christopher Raggett / Seamus Fricker / Teddy
 Whiley

 

 

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