Name of the Project
Mahenge Liandu graphite project.

Location
Tanzania.

Project Owner/s
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, producing an average of 49 000 t/y of high-quality graphite products during a 32-year life-of-mine.

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.

Capital Expenditure
The project has a low development capital expenditure of $34.9-million.

Planned Start /End Date
Not stated.

Latest Developments
Armadale Capital expects a definitive feasibility study (DFS) for its Mahenge Liandu graphite project to be completed in the fourth quarter of this year.

Remaining work, including product marketing, developing a transport and logistics pathway and a resource update, is under way.

Meanwhile, drilling and testing are under way to expand the project resource, optimise process flow sheets and allow for the completion of the final plant design.

Armadale plans to submit an environmental- and social-impact assessment and relocation action plan to the National Environment Management Council before the end of April.

A testwork programme, aimed at progressing a memorandum of understanding for the offtake of 30 000 t/y of graphite concentrate to a binding agreement, is also under way, while the company has progressed discussions with other offtake partners for the remaining 19 000 t/y of graphite concentrate production.

Armadale expects to submit an application for a mining lease in August.

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.