Mahengue Liandu Graphite Project

Armadale Capital acquired a 100% interest in the Mahenge Liandu Graphite Project (‘Mahenge Liandu’) in July 2016.

Resource Map estimate- updated 04.01.17

A 1,400m reverse circulation drilling programme commenced in September 2016 covering a 2km strike length. The drill programme achieved an 85% strike rate of high grade coarse flake mineralisation, which was intersected near to surface thereby implying relatively low extraction costs.

The results of the drilling supported the declaration of a maiden JORC compliant inferred mineral resource estimate of 40.9Mt @ 9.41% Total Graphitic Content (‘TGC’) in December 2016, which highlights the potential commercial viability of Mahenge Liandu. More than 32Mt of this resource has an average grade of 10.47% TGC – one of the largest high-grade resources in Tanzania.

Work to date has demonstrated Mahenge Liandu’s potential as a commercially viable deposit with significant tonnage, high-grade coarse flake and near surface mineralisation (implying a low strip ratio) contained within one contiguous ore body.

Metallurgical test-work is underway to define the quality of the product and additional drilling, intended to test extensions to the current resource and to upgrade the resource classification, is scheduled for H1 2017.