REG - Blencowe Resources - 6,700m Drilling Programme to Commence

Blencowe ResourcesAnnouncement

13/11/2024 07:15

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RNS Number : 9825L  Blencowe Resources PLC  13 November 2024

Date: 13 November
2024
 

Blencowe Resources Plc

("Blencowe" or the "Company")

 

 

Blencowe Commences 6,700m Drilling Programme at Orom-Cross

 Final Major Milestone within DFS underway

 

Blencowe Resources Plc (LSE: BRES) is pleased to announce that it has
commenced the 6,700 metre resource drilling programme, marking the final major
workstream required for the completion of the Definitive Feasibility Study
("DFS") for the Orom-Cross graphite project in Uganda.

With the funding received from the recent capital raise the Company has now
triggered the drilling programme, seeking a significant expansion of the JORC
Standard Resource and Reserves for Orom-Cross.  The drill programme will
target extensions to the existing Northern Syncline and Camp Lode deposits as
well as upgrading the overall Resource classification.  There will also be a
step-out campaign to outline additional resources in a nearby target zone
which, if successful, will add an exciting new high grade deposit into the
Orom-Cross Resource.

The additional Reserves will allow Blencowe to both increase the scale of
production tonnage earlier in the mine life and to extend the life of mine,
delivering a substantial impact on project economics and the final DFS
results.

 

Highlights:

·    Value Addition: Additional resources will underscore the scale and
continuity of the graphite deposit at Orom-Cross, estimated at 2-3 billion
tonnes overall.

·    Step-Out: Drilling in new target areas within the tenement aims to
increase mineral resource and confirm extensions within this vast graphite
deposit.

·    Further Resources and Reserves: Incremental drilling on the existing
deposits can significantly increase the JORC Standard Reserve, translating to
higher production volumes and an extended life of mine

·    Enhanced DFS Economics: Increased production volumes and longer life
of mine would have a materially positive impact on the DFS result.

 

Blencowe has commenced mobilisation and execution for its latest drilling
campaign at the Orom-Cross project.  Experienced drilling partner ADT Africa
(www.adtafrica.com (http://www.adtafrica.com) ) will once again undertake this
programme, under the guidance of Minrom Consulting (www.minrom.com
(http://www.minrom.com) ), Blencowe's geological and technical partner.

The programme aims to expand both the JORC Standard Resource and Reserves,
which currently stand at 24.5Mt at 6.0%TC (total carbon).  Drilling will also
support data required for geotechnical design confirmation for pit designs, as
well as material strength characteristics for crushing and milling designs
within the DFS.

ADT Africa will now mobilise drill rigs and personnel to site shortly and
commence drilling thereafter.  The entire programme is scheduled to span
approximately 2-3 months, with regular market updates to follow.  A revised
JORC Resource is anticipated after drilling and assays are completed.
Additionally, Blencowe will establish the first permanent camp at Orom-Cross,
in preparation for the construction phase, targeted for 2H 2025.

 

Cameron Pearce, Executive Chairman, commented;

"We are confident this programme will significantly extend our JORC Resource
and Reserve base and we will be working closely with our technical partners to
deliver the best results possible in the shortest timeframe, feeding directly
into the DFS.  We are especially excited to be drilling a new deposit which
may ultimately deliver further higher grade tonnes into our project.  Higher
production volumes will make a substantial difference to the NPV within the
DFS modelling."

 

"As a result of successfully completing bulk sample test work over the past 12
months to become pre-qualified, combined with our evolving downstream SPG
strategy that will give Orom-Cross a nearby offtaker for life of mine, we can
now expect sell more product than we originally believed was possible within
the PFS.  This increase in demand supports our decision to build up Reserves
beyond initial PFS expectations, aligning with the significant market need for
high-quality graphite."

 

 

For further information please contact:

   Blencowe Resources Plc    www.blencoweresourcesplc.com

 Sam Quinn                   Tel: +44 (0)1624 681 250

                             info@blencoweresourcesplc.com (mailto:info@blencoweresourcesplc.com)

 Investor Relations          Tel: +44 (0) 7891 677 441

 Sasha Sethi                 sasha@flowcomms.com (mailto:sasha@flowcomms.com)

 Tavira Financial            Tel: +44 (0)20 3192 1733

 Jonathan Evans              jonathan.evans@tavira.group (mailto:jonathan.evans@tavira.group)

Twitter https://twitter.com/BlencoweRes (https://twitter.com/BlencoweRes)

LinkedIn https://www.linkedin.com/company/72382491/admin/
(https://www.linkedin.com/company/72382491/admin/)

 

 

 

 

 

 

Background

Orom-Cross Graphite Project

Orom-Cross is a potential world class graphite project both by size and
end-product quality, with a high component of more valuable larger coarse
flakes within the deposit.

A 21-year Mining Licence for the project was issued by the Ugandan Government
in 2019 following extensive historical work on the deposit.  Blencowe
completed a successful Pre-Feasibility Study on the Project in July 2022 and
is now within the Definitive Feasibility Study phase as it drives towards
first production.

Orom-Cross presents as a large, shallow open-pitable deposit, with an initial
JORC Indicated & Inferred Mineral Resource of 24.5Mt @ 6.0% TGC (Total
Graphite Content). This Resource has been defined from only ~2% of the total
tenement area which presents considerable upside potential ahead.
Development of the resource is expected to benefit from a low strip ratio and
free dig operations together with abundant inexpensive hydro-electric power
off the national grid, thereby ensuring low operating costs.  With all major
infrastructure available at or near to site the capital costs will also be
relatively low in comparison to most graphite peers.

In 3Q 2024 Blencowe introduced a Joint Venture concept with experienced
downstream graphite processing partners to ultimately produce upgraded 99.95%
SPG in Uganda.  This strategy has several key advantages plus substantial
cost savings which will assist deliver a world class project once DFS is
completed.

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