Source - SMW
Armadale Capital has confirmed visual logging of reverse circulation chips has extended the discovery of high-grade coarse flake graphite mineralisation at its Mahenge Liandu graphite project in Tanzania.

Armadale said reverse circulation drilling has confirmed a thick graphite schist deposit with a typical width of 40-60m. Thick intervals of mineralisation have now been intersected from four drill lines which includes 12 RC holes covering 2km of strike length with mineralisation typically commencing near the surface.

Other highlights:

- Graphite mineralisation visually logged as high-grade coarse flake on all four drill lines and is along strike from previously announced results of 60m @ 10.7% Total Graphite Carbon (TGC);

- Preliminary modelling has indicated a potentially substantial sized graphite resource

- Drilling is continuing on site and is expected to be completed shortly with the results expected before the end of Q4 2016.

Chairman William Frewen said: "Being able to confirm an extended discovery of high-grade coarse flake graphite mineralisation from an four lines of extensive RC drilling, so shortly after announcing preliminary results, is extremely positive and the Board is highly encouraged with the progress made by the drilling team so far. 

"Moreover, with initial resource modelling pointing towards a substantial near surface graphite resource, the commercial viability of the Mahenge Liandu project is clearly evident.

"Interestingly, recent reports suggest the demand for natural flake graphite could more than double by 2020 to meet the requirements of the battery industry. 

"Concurrently, regulatory changes in China and Europe, could result in demand for expandable graphite, used in flammable retardant building materials, evolving rapidly. 

"Some industry commentators believe this market would require the same quantity of natural flake graphite feedstock as the lithium-ion battery sector further highlighting the exceptional market dynamics of the burgeoning graphite industry."

At 9:45am: (LON:ACP) Armadale Capital PLC share price was +0.13p at 3.25p