Armadale releases half-year results

12th October 2018


Font size: - +

Australian investment company Armadale Capital released its half-year report in September, showing a 25% resource upgrade proving that the Mahenge Liandu project is a significant discovery and detailing the completion of various projects.

Armadale has been focusing on the scoping study and commencement of the feasibility study for its Mahenge Liandu graphite project, in Tanzania, including diamond drilling and infill reverse circulation drilling for the first six months of 2018.

Further highlights of the year include the infill drilling that delivered a resource upgrade to 51.1-million tonnes at 9.3% total graphitic carbon (TGC), including 38.7-million tonnes indicated at 9.3%, and 12.4-million tonnes at 9.1% TGC, as well as completion of the scoping study that produced excellent economics for the project. The net present value of the project is $349-million with an internal rate of return of 122%, payback of 1.2 years and low development costs of $35-million.

In addition, the potential of the Mahenge Liandu project led to a successful £963 500 equity raising. The funds will be used to support the feasibility study and provide for working capital. The appointment of UK-based joint broker SVS Securities assisted the company with raising the equity.

A feasibility study manager has been appointed and the feasibility study has commenced. Diamond drilling has started at Mahenge Liandu and is designed to support the upgrade of the current Joint Ore Reserves Committee-compliant resource of 51.1-million tonnes at 9.3% TGC to probable and proven reserves in support of the ongoing feasibility study. These activities have produced consistently good results that have confirmed the value of the Mahenge Liandu project.

“Our objective to confirm and highlight the commercial viability of our 100%-owned Mahenge Liandu graphite project is now gaining momentum. “The completion of the scoping study in April was a significant milestone and the results, which underpinned the highly robust fundamentals which could be achieved at Mahenge Liandu, gave further support to our strategy of fast-tracking work ahead of a decision to mine in early 2019,” Armadale director Nick Johansen said in a statement in September.

Moreover, Johansen believes that Armadale can capitalise on its competitive advantages at Mahenge Liandu that are as a result of the simple geology of the project, the well-understood metallurgy, the quality of the high-grade mineralisation and “the relatively straightforward mining techniques which we anticipate would be amenable to exploit the deposit”.

“We are confident that this will provide us with a low capital, low operating expense mining operation capable of delivering a very high-grade and commercially attractive product which is in high demand for multiple industrial applications,” Johansen reiterates.

“Mahenge Liandu is flanked by some of the world’s major new graphite discoveries, and we see the recent political and legislative developments in Tanzania, particularly the formation of the new Mining Commission, as a significant and positive move to reaffirm the country’s position as one of Africa’s premier mining destinations. “We are encouraged by the impact that the Mining Commission has had in just a few months since its formation, and we view this as a further signal of Tanzania’s general spirit of cooperation when looking to foreign investment and unlocking strategic natural resources for the benefit of all stakeholders,” he concludes.

Edited by Zandile Mavuso
Creamer Media Senior Deputy Editor: Features


The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?