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Armadale Capital said drilling results from its Mahenge Liandu mine confirmed signs of graphite, raising the prospect of increased production from the mine.
The results confirmed previously identified areas of extremely high-grade near-surface mineralisation that can be targeted for initial mining with positive read across for lower extraction costs and enhanced earnings (EBITDA) margins,' the company said.
The company said it expected increased production at the project based on the targeted throughput of 400,000 tonnes a year of ore currently being evaluated as part of a definitive feasibility study, it added.
'We believe recent news has demonstrated the enhanced commercial viability of the Mahenge Liandu Project which, with a high-grade JORC compliant indicated and inferred mineral resource estimate of 51.1Mt at 9.3% TGC, is already one of the largest high-grade resources in Tanzania,' said Nick Johansen Director of Armadale.
At 9:58am: (LON:ACP) Armadale Capital PLC share price was +0.13p at 1.53p