Armadale Capital plc reported that the metallurgical bulk test work programme has been significantly progressed with Phase One completed successfully. The programme has been carried out in China by Xinhai Mineral EPC ("Xinhai"), the Chinese Engineering, Procurement, Construction and Manufacturing company. HIGHLIGHTS: Positive testwork is a major de-risking step in confirming process flowsheet as per definitive feasibility study ("Definitive Feasibility Study") design; programme completed by highly regarded Chinese EPC, Xinhai, using a bulk composite of representative feed sample material; consistent graphite concentrate grades above 95% TGC were achieved with recoveries above 92%; Mahenge project design for treatment of graphite ore confirmed as being able to produce high quality, high purity graphite concentrate; Phase One of FEED Studies complete, Phase Two to begin shortly; local content plan for the Mahenge Project has been approved by the Ministry of Minerals and Mining Commission of Tanzania. Xinhai are a highly experienced, industry-leading Chinese Engineering, Procurement, Construction and Manufacturing (EPC) group in the field of optimising mineral processing solutions, mine design and build and equipment manufacturing. The test work to date has confirmed the efficacy of the process flow sheet as per the Company's Definitive Feasibility Study for the treatment of graphite ore to produce high quality, high purity graphite concentrate. This completes the first phase of the Front-End Engineering Design Studies ("FEED Studies") being undertaken by Xinhai. Phase Two of the work involves the completion of remaining necessary engineering to develop an EPC fixed price contract. Details of Xinhai Flow Sheet Testwork: Confirmatory testwork program completed by Xinhai; sample comprised bulk composite of representative feed sample material; program included head assay, mineralogy and X-ray analysis of the sample and flotation; beneficiation flotation testing included rougher and cleaner flotation and examined the impact of feed grind size, reagent addition rates, regrind stages and cleaner stages; the optimised flowsheet test work included open cycle and closed cycle testing; consistent graphite concentrate grades above 95% TGC were achieved with recovery above 92%; overall flow sheet to comprise typical graphite multi-stage flotation with regrind and cleaning.