REG - Blencowe Resources - DFS Update

Blencowe ResourcesAnnouncement

26/09/2022 07:00

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RNS Number : 5415A  Blencowe Resources PLC  26 September 2022

Date: 26 September
2022                             Blencowe
Resources Plc

("Blencowe" or the "Company")

 

 

Definitive Feasibility Study Commences on Orom-Cross Graphite Project

 

Highlights

·    Definitive Feasibility Study (DFS) commences with target completion
date 2H-2023.

·    Engagement with specialist graphite engineering firm to manage the
DFS.

·    Blencowe currently reviewing various options for strategic alliances
in key areas within the Orom-Cross project, including;

o  Offtake

o  Funding

o  EPC (Engineering, procurement and construction of plant)

 

Blencowe Resources Plc ("Blencowe Resources" or the "Company") (LSE: BRES) is
pleased to announce that it has commenced the Definitive Feasibility Study for
its flagship Orom-Cross graphite project located in Uganda, East Africa.

This follows outstanding Pre-Feasibility Study results (NPV8 US$482M: IRR8
49%) as presented to the market in July 2022, which have prompted the Company
to move quickly on to this next stage of project development.  The DFS is the
last step in terms of major studies prior to the board making a decision to
mine.

Blencowe is currently in the final stages of a process to select an
experienced independent engineering firm to manage and ultimately sign off on
the DFS. The Company anticipates announcing the engineering partner in the
near term.

The Company is also assembling a strong management advisory team to assist
with all key aspects of the study, including plant design, engineering,
infrastructure, mining, operations, sales and marketing (offtake),
environmental and social aspects, and all project funding.  This team will
comprise of resource executives who have considerable experience delivering
projects through to production in Africa, as well as specific graphite
experience.  They will assist the existing Blencowe management team at all
levels to deliver a successful DFS.

Metallurgical test work already completed in both Canada and Australia
indicates that Orom-Cross can produce several high-quality end products as a
96-97% LOI concentrate. Additional metallurgical test work is anticipated in
2023, as part of the DFS, to test the expandability, spheroidisation and
spherical graphite purification (SPG) properties, as the ability to
cost-effectively further upgrade Orom-Cross concentrates is expected to add
significant additional value to the project.

The Company will continue to keep the market informed of progress as key
milestones within the DFS process are completed.

 

Cameron Pearce, Executive Chairman commented;

"We continue to make substantial progress at Orom-Cross, having moved from
project acquisition through JORC Resource drilling and Pre-Feasibility Studies
and now into the Definitive Feasibility Study stage, all within just 2.5
years.  The quality and value of Orom-Cross graphite continues to inspire us
to move as quickly as possible towards a decision to mine but at the same time
we are ensuring all key areas are thoroughly analysed including third party
reviews by industry experts.  Quality and consistency of end product remain
critical to building strong buyer relationships and we will continue to test
the properties of our graphite as necessary to ensure our product is
considered at the highest levels compared to other graphite products available
worldwide.  This is an ongoing exercise but more end product value is being
added at each stage."

 

He added "Graphite demand is growing fast as forecast and as the market
becomes increasingly more aware that there are very few new graphite mines
scheduled to commence production in the near term this demand-pull will
potentially drive further price rises ahead, particularly for the products
found at Orom-Cross.  Blencowe owns 100% of one of the largest, high-quality
graphite projects in the world and is therefore uniquely placed and
significantly leveraged to take advantage of this emerging market moving
forward."

 

 

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 is now
moving 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. 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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