Name of the Project
Mahenge Liandu graphite project.

Location
Tanzania.

Client
Armadale Capital.

Project Description
The Mahenge Liandu deposit is one of the highest-grade large flake deposits globally after the recent upgrade to 51.1-million tonnes at 9.3% total graphitic carbon (TGC), including 38.7-million tonnes in the indicated category at 9.3% TGC and 12.4-million tonnes in the inferred category at 9.1% TGC.

The scoping study completed on the project is based on a throughput of 400 000 t/y over a 32-year mine life from the start of construction.

The deposit has a low average strip ratio of 1:1 for the life of the mine and a very low operating cost of $408/t.

There remains significant scope to further improved returns, with staged expansions, as the current mine plan is based on about 25% of the total resource

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pre-tax net present value, at a 10% discount rate, of $348.7-million and an internal rate of return of 122%, with a payback of 1.2 years.

Value
The project has a low development capital expenditure of $35-million.

Duration
Not stated.

Latest Developments
The results of the scoping study have confirmed the combination of high graphite feed grade and coarse flake high-purity graphite product, delivering robust project economics and warranting progress to the next phase of feasibility studies to progress the project to a decision to mine in early 2019.

In the interim the company will start negotiations with identified strategic funders and offtake partners.

Key Contracts and Suppliers
BatteryLimit (scoping study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Armadale Capital, tel +44 20 7236 1177 or email info@armadalecapitalplc.com.