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
The mine design for the Mahenge Liandu graphite project is being finalised, following a site visit by the project engineer.

The mine design, which will be optimised to ensure high-grade areas are targeted first, will be included in a definitive feasibility study (DFS) for the project.

Armadale has reported that all assumptions for the DFS have been stress-tested and verified and that the project engineer has reviewed the site layout to garner a primary understanding of the logistics, terrain and route to market.

Meetings have also been held with mining contractors, third-party suppliers and logistics operators to ensure a seamless route to transport graphite concentrate from the mine to port. 

“Over the past six months, significant progress has been made – defining a high-grade resource, completing memorandums of understanding and progressing the commercialisation strategy. With our funding position now secure, the board is delighted to continue progressing Armadale’s ongoing transition from explorer to emerging producer. 
 
“The site visit by the project engineer tasked with designing the mine is a key milestone as it signifies that the concept is moving towards reality and is an important step as we finalise the project’s DFS.  We are now looking beyond the completion of the DFS to focus on the commercialisation strategy to deliver a high-quality graphite product to our off-take partners. As part of this process, the board has been increasingly focused on project infrastructure, and on ensuring that all the elements necessary to commence mining operations in a timely manner are in place," Armadale director Nick Johansen has said.
 
Key Contracts and Suppliers
BatteryLimits (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.