LONDON (ShareCast) - (ShareCast News) - The results of the first round of drilling at its Mahenge Liandu licence in Tanzania led Armadale Capital to believe there were more and better resources in place than initially thought.
Following the completion of its first phase of reverse circulation drilling, Armadale reported on Thursday it had found a consistent area of near surface mineralisation over a strike length of 1,200m.

Furthermore, 24 out of the 25 holes returned intersected at or near surface mineralisation confirmed a consistent area of near surface mineralisation over a strike length of 1,200m.

According to Nick Johansen, one of Armadale's directors: "with a second phase of drilling being planned, plus geological mapping evaluating possible extensions to the deposit on the wider licence area, I am confident that our maiden JORC Resource estimate of 40.9Mt at 9.41% TGC, which is already one of the largest in Tanzania, has significant room for expansion".

The current resource estmate - which was already one of the largest in Africa - had "signigicant room for expansion", Johansen added.

A second drill programme aimed at increasing the Resources category over a strike length of 2,400m was planned to commence once results of the first phase were returned.

Also, geological mapping had discovered further previously untested areas of graphite mineralisation.

Initial results from the bulk sample underway showed a 21.3% total graphite carbon head grade and confirmed that high levels of recovery, of above 98%, were achievable at the rougher stage, the company said in a statement.

The company's shares were up 3.92% to 1.32p by 10:24 BST.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE