Name of the Project
Mahenge Liandu graphite project.

Location
Tanzania.

Client
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 over a 32-year mine life from the start of construction.

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 with 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.

Value
The project has a low development capital expenditure of $35-million.

Duration
Not stated.

Latest Developments
Armadale Capital has completed a diamond drilling programme at its Mahenge Liandu graphite project, with eight holes for a total of 489 m drilled, ahead of an expected decision to mine in early 2019. The area drilled covers Armadale’s proposed initial mining area and the results of the drilling will be incorporated into its mine planning over the coming months.

All holes have intersected mineralisation from surface over wide thicknesses averaging 55 m and up to 67 m.

The cores will be used to produce representative graphite concentrates to advance the product marketing and refine the process flowsheet, the company has explained.

Meanwhile, all aspects of the development work at the project are progressing encouragingly.

Drilling is continuing on site; however, the bulk of activities are now focused on the completion of the environmental-impact assessment, relocation plan and valuation survey, as the company targets first production within 12 to 18 months.

The completion of the reverse circulation programme and delivery of the company’s relocation plan and ancillary surveys are expected in the coming weeks.

Key Contracts and Suppliers
BatteryLimit (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.