Armadale Capital (ACP) told investors on Thursday that metallurgical test-work results from its Mahenge Liandu Graphite project in Tanzania were “highly encouraging”.
Results confirmed that high-quality graphite flake of up to 97.1% purity can be produced from its resource which was estimated to have 51.1Mt at 9.3% TGC (Total Graphite Content).
The company said that it is moving into the next stage of the Definitive Feasibility Study, with work on the plant design and mine site layout underway.
The company also said it is in discussions with prospective Chinese off-take and project financing partners, being in a better position after the metallurgical test-work outcome.
Shares in Armadale Capital were trading 17% higher at 1.325p by midday trading
Nick Johansen Director of Armadale said: “Our focus this year has been increasingly demonstrating to our shareholders that we are in the process of transitioning from explorer to emerging producer.”
“To this end, it is pleasing to see that we have now successfully completed an outstanding metallurgical test-work programme that convincingly demonstrates Armadale can produce a high-quality graphite concentrate.”
He added: “Our engineering team is now fast-tracking the next phase of the DFS, which should result in the main layout and flow-sheet being completed shortly.”
“Against this technical backdrop, our marketing team now has significant incremental data points and is progressing discussions with our prospective Chinese off-take and project finance partners.”
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