Published: February 10, 2016 |

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Armadale has received the preliminary results of the feasibility study for Phase 1 of the Mpokoto Gold Project in the Katanga Province of the Democratic Republic of Congo. The study is based on the intended initial phase of mining at Mpokoto, focusing on the shallower oxide portion of the resource which will be prioritized for exploitation in conjunction with the continued development of the deeper unweathered ore designated for Phase 2.

The study, which demonstrates robust fundamentals, provides the foundation for Armadale to further progress discussions with A-MCS, the potential funders of the project as well as identify further expansion opportunities at Mpokoto.

“The results of the study demonstrate that Mpokoto is a commercially valuable gold development project, confirming its technical viability as well as offering attractive returns and near term production potential. Its positive returns are even more significant given that the study covers Phase 1 of the project only, which covers a fraction of the total known mineralization. The expanded scoping study showed that Phase 2 of the project, which relates to the deeper unweathered ore, had a pre tax NPV of approximately US$24 million, taking the overall potential NPV of the project to US$43 million. There is also further significant upside available from expanding the existing resource base of the project, particularly the oxide resource, which is lower cost to process.

“Having completed this initial phase of the study, we are now focused on finalizing the funding of the project with our partners, A-MCS. These discussions are ongoing, and once finalized construction of the project can commence.

“Alongside these discussions the board will consider further options to optimize the project as well as looking at options to expand the overall resource. We look forward to updating the market with further progress,” said Peter Marks, chairman of Armadale.

About Armadale Capital
Armadale Capital Plc is focused on investing in and developing a portfolio of investments, targeting the natural resources and/or infrastructure sectors. The company, led by a team with operational experience and a strong track record in Africa, has a strategy of identifying high growth businesses where it can take an active role in their advancement. Armadale is focused on the development of the development of the Mpokoto Gold project in the Democratic Republic of the Congo, to which it holds the right to an 80 percent interest, together with a significant area of exploration licenses in the Southwest of the DRC covering some 800,000 hectares which are prospective for many minerals including, manganese, gold and diamonds. Armadale also holds other investments, including a 30 percent interest in Mine Restoration Investments Ltd, a South African listed company which has a waste coal processing operation in KwaZulu Natal, as well as a number of other quoted investments.

To stop by Armadale’s website, CLICK HERE

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