Armadale reports 'promising' graphite carbon reuslts at Tanzania project

8th Nov 2016 12:21

(ShareCast News) - Natural resource investment company Armadale Capital reported that initial assay results were "promising" as it found high-grade graphite mineralisation up to 26% of total graphitic carbon at the Mahenge Liandu project in Tanzania.Initial assay results from the 2016 drilling campaign across a range of intervals, up to 47 meters in width, found that grades are consistent with trends from the 2015 assay results, which encompassed 60 metres at 10.7% total graphitic carbon including 24 metres at 12.9% total graphitic carbon and 5 meters at 21.5% total graphitic carbon.The company said the remaining assay results will be finalised and announced shortly, while feedback on the Australasian Joint Ore Reserves Committee Code (JORC) modelling are due by the end of 2016, and to indicates a substantial graphite resource.Metallurgical test-work on initial purity and flake size distribution of graphite concentrate is ongoing.Chairman William Frewen said: "The wide intervals and high grade nature of the results are encouraging and should positively impact the extraction costs given the close proximity to the surface of the mineralisation. The board is confident the remaining assay results will further reinforce the project's upside potential, which will in turn be further bolstered by ongoing JORC modelling."With demand for natural graphite forecast to accelerate significantly as new lithium-ion battery giga-factories come on stream, Armadale is ideally positioned to capitalise on this compelling supply-demand market fundamentals."He added that the results reinforce the potential for commercial viability of the Mahenge Liandu graphite project, against a highly favourable macro outlook.Shares in Armadale Capital were up 7.43% to 3.76p at 1221 GMT.