Buckreef tanzania gold

Armadale has signed a MoU for a proposed off-take agreement with the Matrass Group for high quality graphite products produced at the Mahenge Liandu Graphite Project in Tanzania.

Armadale is also pleased to provide an update on the Feasibility Study and the Environmental and Social Impact Study (ESIA) underway at the project.

Nick Johansen, Director of Armadale says:

“In order to expedite our development objectives at Mahenge Liandu, we have been simultaneously pushing our commercial activities and operational work streams over the past six months with the intention of securing offtake agreements and finalising the various permitting items. 

“I am delighted to report that our commercial efforts have been rewarded with this offtake MOU for 60% of our average target annual production with the Matrass Group.  

“Demand for high quality graphite products, such as ours, have been highlighted through other offtake agreements, including ASX listed Black Rock Mining and the binding offtake for 205,000 tpa from its project, which is proximal to Mahenge Liandu. 

“This speaks volumes for the growing market demand for graphite from the region, which boasts some of the highest purity graphite concentrates globally and reinforces our confidence that binding offtake agreements will be secured for our entire 49,000 tpa forecast production.

“As recent activities have focused on securing offtake agreements and mine permitting, both of which are making positive progress, we look forward to recommencing activities for the Feasibility Study and we look forward to updating the market further in this regard.”

Overview

  • MOU signed for the proposed offtake of 30 000 tpa of graphite concentrate produced at Mahenge Liandu for an initial five-year term at a price to be agreed based on the Chinese benchmark for the quality of the graphite produced, representing over 60% of average target annual production
  • Test-work programme aimed to progress the MOU to a binding agreement is planned to start before the end of Q1 2019
  • Discussions regarding the remaining 19,000 tpa of production ongoing with a number of potential customers
  • Feasibility study drilling completed with further site activities expected to recommence in the coming weeks following the end of the Tanzanian wet season
  • ESIA now completed, with the valuation study returning lower than planned relocation costs further enhancing the robust economics of the Project indicated in the Scoping Study

Feasibility study update

After completing the drilling required for the feasibility study, site activities for the feasibility study had slowed down over the Tanzanian wet season.

The field programme is expected to recommence in the coming weeks.

Permitting

The Environmental and Social Impact Study has now been completed. A final report for the work by specialist consultant Enviromine has been completed and is expected to be submitted to the National Environmental Management Committee for validation and initiation of environmental permit approval.

The valuation study returned a lower than planned relocation cost for villages living in the proposed mine lease of less than US$1,000,000. This was a result of a smaller than planned area and a lower than expected population density.