Name and Location
Mpokoto gold project, Katanga province, Democratic Republic of Congo.

Client
Armadale Capital.

Project Description
An expanded scoping study on Mpokoto has demonstrated that it is a robust, low-cost gold development project with attractive economic fundamentals, even at a gold price of $1 000/oz.

The project has a current total mineral resource of 678 000 oz of gold from 14.58-million tonnes grading 1.45 g/t of gold at a cutoff grade of 0.5 g/t to produce about 25 000 oz/y over a nine-year life-of-mine.

Net Present Value/Internal Rate of Return
The expanded scoping study has increased the project’s post-tax net present value (NPV) by 68% – based on a discount rate of 8% and a gold price of $1 250/oz – from $33-million in the previous study published in April 2014 to $55.3-million. The project has a payback period of 20 months.

Value
The total capital cost of the project is estimated at $20.4-million.

Duration
Production is targeted for the first half of 2016.

Latest Developments
Armadale Capital will raise £400 000 to expand the resource of its Mpokoto gold project.

The company announced the conditional placing of ten-million new ordinary shares of 0.1p each at a price of 4p a share on July 14.

The proceeds will be used to start a 2 500 m drilling programme later this month with the aim of adding another 120 000 oz to 150 000 oz of gold at a grade of 1.25 g/t to 1.5 g/t to the project’s current resource of 678 000 oz at 1.45 g/t.

The funds will also assist in advancing initial work on the ground at Mpokoto, which is on track to start production in the first half of 2016, as the definitive feasibility study (DFS) is completed.

Armadale is also aiming to finalise its agreement with Africa Mining Contracting Services group to fund, develop, build and operate Mpokoto.

Key Contracts and Suppliers
Bara Consulting (DFS).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Armadale chairperson Peter Marks, tel +61 3 9824 8166, fax +61 3 9824 8161 email pmarks@armadalecapitalplc.com