Armadale Capital (LON:ACP) said the development of its Mpokoto gold project has accelerated and that results from initial metallurgical studies were “highly encouraging”.
It said the metallurgical results from the Democratic Republic of Congo-based project suggested that weathered and oxide ore could be amenable to gravity separation and so generate higher recoveries at lower costs.
The tests indicate that recoveries of up to 80% are achievable and that a limited use of chemicals could considerably reduce the overall cost of processing the ore.
“Our ambitious development strategy at our flagship Mpokoto project is bearing fruit for the company, with these latest results further enhancing the value of this asset and driving development forwards with the aim of commencing commercial production within 24 months,” said director Justin Lewis.
A scoping study and related metallurgical and environmental reports are nearing completion and a mining licence application is expected to be made by the end of March, the AIM-listed investment company said.
The scoping study will include an initial estimate of operating and capital costs.