Aim-listed investment group Armadale Capital on Tuesday confirmed that commercialisation plans for the Mahenge Liandu graphite project, in Tanzania, continues to advance, with initial metallurgical testwork in line with expectations.

Armadale noted that ore was crushed up to 1 mm then put through an initial rougher flotation circuit, which achieved up to 95% initial recovery levels.

Further, incremental testwork to enhance the quality of the final graphite concentrate product is progressing well with targeted premium purity levels expected in the 95% to 97% range, which are at the higher end of graphite projects globally.

Armadale director Nick Johansen noted that, “with many moving parts critical to developing a seamless value chain for the Mahenge Liandu project, it is pleasing to receive metallurgical testwork that is progressing to plan and with results in line with expectations. This will augur favourably as we move more proactively to secure binding offtake commitments and project-level financing from our Chinese partners.”

Other developments which have positive connotations for Mahenge Liandu’s economics include rainfall data indicating that ample surface water will be available to build and operate the mine and processing plant, materially reducing the use of “costly” groundwater.

Armadale noted that the mine plan would incorporate the use of surface and recycled water to minimise the drawdown of groundwater resources, as well as reduce run-off from site into surrounding communities.

Armadale’s local management had met with the Liandu village council committee, the district commissioner and the district executive director in June to review engagements to date and focus on areas where cooperation could be enhanced.

“Moving forward, our engagement with the local community couldn’t be stronger and we are delighted to have their support, especially as the board moves to aggressively ramp up our efforts to transform from explorer to emerging graphite producer,” Johansen concluded.