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African natural resources project investor Armadale Capital recorded a 'meaningful' upgrade in the mineral resource estimate for its Mahenge Liandu graphite project in Tanzania.
The results of a recent infill drilling campaign have seen the estimate increase to 59.5m tonnes at 9.8% graphite content.
The estimate was broke down into a measured resource of 11.5m tonnes at 10.5%, indicated of 32.1m tonnes at 9.6% and inferred at 15.9m tonnes at 9.8%.
'This latest upgrade is extremely welcome news and there are a number of clear positives to take from it,' director Nick Johansen said.
'Firstly, we now have materially higher confidence in the mineral resource estimate and secondly it has demonstrated the potential to mine higher volumes of graphite in the early years at a higher Ebitda margin to enhance the project's overall upside.'
At 1:44pm: (LON:ACP) Armadale Capital PLC share price was +0.1p at 2.2p