Name of the Project
Mahenge Liandu graphite project.

Location
Tanzania.

Project Owner/s
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, producing an average of 49 000 t/y of high-quality graphite products during a 32-year life-of-mine.

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 improve returns using 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 pretax 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.

Capital Expenditure
The project has a low development capital expenditure of $34.9-million.

Planned Start /End Date
The company plans on starting production in 2021.

Latest Developments
Armadale Capital has announced “exceptionally” high-grade results from a drilling programme at the Mahenge Liandu project.

A definitive feasibility study (DFS) on the project is on track to be completed during the fourth quarter of this year. Some of the positive outcomes in the DFS will include a higher average grade from near-surface mining in the early years and low extraction costs.

Of the company’s first four holes assayed, totalling 262 m, Armadale recorded intercepts, including 7 m at 16.9% TGC from 31 m, and 9 m at 14.8% TGC from surface. 

Armadale has said these encouraging results are part of a broader zone of high-grade mineralisation, which includes 39 m at 11.2% TGC from surface and 57 m at 7.6% TGC from surface.

Meanwhile, Armadale continues with its 18-hole reverse circulation drilling programme totalling 958 m.

Key Contracts and Suppliers
Battery Limit (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.