REG - Blencowe Resources - Bulk Sampling Complete

Blencowe ResourcesAnnouncement

27/02/2023 07:00

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RNS Number : 0644R  Blencowe Resources PLC  27 February 2023

Date: 27 February 2023                        Blencowe
Resources Plc

("Blencowe" or the "Company")

 

Bulk Sampling at Orom-Cross Graphite Project complete, Final Stage
Metallurgical Testing commenced

 

Highlights

·    100 tonne bulk sample mining completed.

·    Transport underway to Chinese graphite processing specialist Jilin
Huiyang New Material Technology Company Ltd ("Jilin") for final metallurgical
testing in its existing facilities.

·    Additional 150kgs sample already sent to Jilin for initial off-site
testing.

·    Ugandan Government had approved landmark one-off permit for Blencowe
to export bulk sample graphite from Orom-Cross earlier in Q1 2023.

 

Blencowe Resources Plc ("Blencowe Resources" or the "Company") (LSE: BRES) is
pleased to announce it has completed the mining and packaging of both the 100t
bulk sample and 150kg of sample from its flagship Orom-Cross Graphite Project.
In January 2023 the Company received an approval from the Ugandan Ministry of
Energy and Mineral Development to export materials from its Orom-Cross
Graphite Project to Chinese testing facilities to enable final bulk
metallurgical test work to be undertaken.  Blencowe has mandated industry
specialist Jilin to complete this test work in their existing plant facility,
negating the requirement for the Company to build its own bulk testing
facility on-site in the near term, saving both considerable time and cost.

This final stage of metallurgical test work is a key component of the ongoing
Definitive Feasibility Study.  Blencowe has already proven twice (in
Canada/SGS and Australia/IMO) that it can achieve a high grade, low impurity
97% LOI concentrate from a composite mix of its two deposits at Orom-Cross.
The Company expects to achieve the same results with this significantly larger
sample size, thereby enabling the pre-qualification of end products and
subsequent entry into binding offtake contracts.

Works to excavate and transport the bulk samples were undertaken under
supervision of the Company's geologists and the Ugandan Department of Geology,
Survey and Mines (DGSM). Works were carried out by local Uganda firm
ADT/LogVoy. The 100t bulk sample and the 400litres of groundwater are being
sea-freighted from the Port of Mombasa, and the 150kgs of same samples are
being fast-track air-freighted to same Jilin facility, to undergo
metallurgical testing as a precursor to build knowledge before the larger
samples arrive.

Once this bulk sample test is completed over the next few months Blencowe will
utilise these same facilities to lift the 97% concentrate to a 99.95%
SPG-ready product, which can then be tested by OEMs to ensure it meets their
requirements.  When this OEM testing is successfully completed binding
offtake contracts may then be secured.  In parallel Blencowe will also be
doing same 99.95% SPG-ready testing in USA to obtain a separate qualification
with another technical industry expert, thereby ensuring the widest range of
offtake partners are available to the Company.

 

Cameron Pearce, Executive Chairman commented;

"Our process to secure end-product qualification, which then opens the door to
binding offtake contracts, is underway.  This is a methodical process
designed to deliver an end-product that meets the most stringent battery grade
testing by the OEMs.  We are very confident in the product to be produced
from Orom-Cross, especially given the lack of impurities within the
concentrate in all testing thus far.  If we can continue to demonstrate this
quality in the months ahead we will be in excellent shape to complete this
pre-qualification process."

 

He added "The pre-qualification process remains a barrier to entry for many
would-be graphite producers, as achieving the battery level quality the OEMs
require is challenging.  However, based on historical test results we are
confident we will achieve this and, in doing so, place Orom-Cross as one of
the highest quality graphite projects worldwide."

 

 

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@tavirasecurities.com
                          (mailto:jonathan.evans@tavirasecurities.com)

 First Equity Limited     Tel: +44(0)20 7330 1833

 Jason Robertson          jasonrobertson@firstequitylimited.com
                          (mailto:jasonrobertson@firstequitylimited.com)

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 and Blencowe
completed a successful Pre-Feasibility Study in 2022.  The Company has now
moved into the Definitive Feasibility Study phase as it drives towards first
production.

Orom-Cross presents as a large, shallow open-pitable deposit, with a maiden
JORC Indicated & Inferred Mineral Resource deposit of 24.5Mt @ 6.0% Total
Graphite Content, with only a small percentage of the overall deposit drilled
to date. Development of the resource is expected to benefit from a low strip
ratio and free dig operations, thereby ensuring lower operating and capital
costs.

 

 

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