Armadale Capital, an AIM quoted investment group focused on natural resource projects in Africa, has provided results from the met test work programme completed as part of the ongoing definitive feasibility study (DFS) at the Mahenge Liandu graphite project in south-east Tanzania, which is at the heart of the group’s transformation from explorer to emerging producer.
The met test work was undertaken by Bureau Veritas in Perth, Australia. Highlights from the test programme are as follows:
- Confirmation that 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.
- A 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 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 an NPV of US$349-million and an IRR of 122%.
Armadale chairman Nick Johansen says the ability to produce graphite concentrations of such purity with results of over 97% is a milestone for the company.
“It confirms our confidence in the commercial value and economic potential of Mahenge. High-purity graphite concentrates are hugely important in the electric vehicle market, which is expected to be the main source of growth in the demand for graphite over the coming years.”
He says Armadale Capital will remain focused on finalising the results of the DFS despite the global challenges posed by the COVID-19 pandemic.
“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.”
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.
Armadale Capital is completing a DFS based on the results of a scoping study completed in March 2018. The study was based on a throughput of 400 000 tpa over a 32-year mine life and demonstrated exceptional project economics with an NPV of US$349-million, an IRR of 122% and significant capacity for improvement as the current mine plan is based on circa 25% of the total resource. Since this time, incremental improvements have been delivered successfully, giving the company increased confidence in the economics of the project.
Following completion of the met test-work programme by Bureau Veritas the company reports that representative high-grade core samples have been returned, showing increased grinding consistent purity of above 97%.