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 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.

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

Duration
Not stated.

Latest Developments
Armadale Capital has increased the resource at Mahenge Liandu by 25%, proving that the project is a significant discovery.

Armadale has been focusing on the scoping study and start of the feasibility study, including diamond drilling and infill reverse circulation drilling in the first six months of this year.

In addition, the potential of the project has 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 has assisted the company in raising the equity.

A feasibility study manager has been appointed and the feasibility study has started. Diamond drilling has started 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.

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.