Armadale Capital is on course to make an application for a mining licence for its flagship Mpokoto gold project in the DRC, which is expected by 31 March.

The African focused natural resources investor provided an update on the project, where an accelerated development programme is underway targeting commencement of production in 24 months.

Initial results of the scoping study reveal potentially low opex costs of less than US$650 per oz of gold and considerable scope to add to Mpokoto’s current total mineral resource of 510 000 oz of gold. The key findings of the scoping study will form the basis of the mining licence application, which is expected to be made by 31 March 2014.

Armadale has also announced a sales agreement at its 40% owned coal briquetting business in South Africa. MRI, in which Armadale holds a 40% interest, has agreed commercial terms for the sale of coal fines produced at its processing and briquetting project at Vaalkrantz, South Africa, providing an additional cash flow stream. MRI continues to have discussions and trials with other potential customers for its coal briquettes.