Armadale, the AIM quoted investment company focused on natural resource projects in Africa, is pleased to announce the results of the scoping study for the initial phase of mining at the Mpokoto gold project in the Katanga Province of the Democratic Republic of Congo in which Armadale has the right to an 80% interest.

Mpokoto has demonstrated to be a robust low cost gold development project with attractive economic fundamentals even at gold price of US$1,100/oz, boasting a post-tax net present value of US$33.0 million based on a discount rate of 8% and a gold price of US$1,250 per ounce and internal rate of return of 141%. The scoping study focused on initial phase of mining – Stage 1 – based only on the shallow oxide orebody (30-40m).

There appears to be significant further upside potential from unweathered ore at >30m depth, so Stage 2 Scoping Study to commence shortly, focussd on development of the ore body at depth below the 30m covered by Stage 1, with regard to processing unweathered ore and updated mine plan.

“The study shows Mpokoto is an attractive gold development project, offering highly attractive returns, near term production potential, with robust economics even at low gold prices.  Its positive returns should be further underpinned through the upside potential given that this Stage 1 Scoping Study is only based on a fraction of the total known mineralisation,” said Armadale director Justin Lewis.

“We are now focussed on advancing Mpokoto to the next stage of its development before targeting commercial gold production.  Stage 2 of the Study will commence shortly and focus on the less weathered ore below 30m, which is expected to further add to the overall value of the Project.  We look forward to updating the market with the results of the additional drilling and metallurgical studies.”

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