REG - Blencowe Resources - Hydropower Study

Blencowe ResourcesAnnouncement

20/02/2025 07:15

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RNS Number : 7457X  Blencowe Resources PLC  20 February 2025

Date: 20 February 2025
 

Blencowe Resources Plc

("Blencowe" or the "Company")

 

Hydropower Study Confirms Sustainable, Low-Cost Power Supply for Orom-Cross

Advancing Towards a Net-Zero Graphite Operation

Blencowe Resources Plc (LSE: BRES) is pleased to announce the completion of an
initial hydropower study for its Orom-Cross Graphite Project in Uganda. The
study confirms the availability of abundant, low-cost, and renewable
hydropower from the Ugandan national grid, providing a strategic advantage for
the Project's future mining and processing operations. This marks a major step
towards Blencowe's commitment to sustainability and its ambition to deliver a
net-zero graphite operation.

 

Key Findings of the Hydropower Study

·    Plentiful renewable energy: Two high-capacity power transmission
spurs extend to the regional grid near to Orom-Cross, one from the Bujagali
Hydroelectric Dam in Jinga and the other from the Isimba Hydroelectric Dam,
both located on the Nile River. This ensures a reliable supply of renewable
energy to Orom-Cross, including redundancy.

·    Low Cost Advantage: Uganda's hydropower tariffs are significantly
lower than regional African comparisons, positioning Orom-Cross as one of the
lowest-cost graphite producers globally.

·    Ample Capacity: Uganda currently has over 1,000 MW of installed
hydropower capacity, with additional hydro-projects underway. Orom-Cross's
power demand of 12MW (Phase 2) rising to 40MW at full production can be
comfortably accommodated.

·    Advancing towards Power Purchase Agreement (PPA): The Company is now
working towards securing a long-term PPA with Uganda Electricity Transmission
Company Limited (UETCL) to formalise the supply of low-cost hydroelectricity
for the Project.

·    Net-zero Potential: Access to 100% renewable energy for strengthens
Blencowe's ability to achieve net-zero production, making Orom-Cross one of
the most environmentally responsible graphite projects globally, a critical
factor for funding providers and offtake partners in Europe and North America.

 

Strategic Importance of Hydropower for Orom-Cross

Reliable, green, and cost-effective energy is a major advantage as Blencowe
moves towards first production in 2026. Orom-Cross will require 12MW for Phase
2 commercial scale production, scaling to 40MW at full ramp up, making power a
critical cost factor.  The study reinforces confidence that Orom-Cross can
operate with one of the lowest carbon footprints in the graphite sector,
aligning with global ESG and sustainability standards.

Hydropower access strengthens Blencowe's appeal to OEMs, battery
manufacturers, and critical mineral end-users seeking to secure sustainable
supply chains. It also enhances discussions with potential offtake and
funding partners, particularly in Europe and North America where securing
non-China supply is a priority.

 

Downstream Beneficiation

A key differentiator for Orom-Cross is Blencowe's plan to develop a
beneficiation facility near the Karuma Power Station, (190kms from site) in
partnership with one of the most world's leading SPG producers ("SPG
Partner").  This facility will upgrade 96% small fines graphite concentrate
to 99.95% SPG (spheronised purified graphite) significantly increasing value
and returns.

A low-cost, high-capacity power source is essential for this process.
Blencowe intends to leverage its SPG Partner's proven thermal purification
technology which requires considerable energy.  This technology eliminates
the need for acid leaching and avoids associated environmental concerns.

The availability of abundant, cost-effective hydropower makes
this downstream processing strategy viable and highly competitive,
reinforcing Orom-Cross's position ahead as a premier graphite supplier.

 

Next Steps

Blencowe will continue discussions with UETCL and the Ugandan Government to
finalise a PPA and integrate renewable energy planning into the ongoing
Definitive Feasibility Study (DFS). Additional studies will be conducted to
assess potential power demand scenarios as Orom-Cross scales up production.

 

Executive Chairman Cameron Pearce commented:

"Access to abundant, low-cost hydropower directly from Uganda's national grid
represents a major strategic advantage for Orom-Cross. This will enable us to
operate sustainably with one of the lowest carbon footprints in the graphite
sector while keeping production costs highly competitive."

"We are committed to building one of the world's most ESG-friendly graphite
projects, and securing clean energy is a critical milestone towards that goal.
With work now progressing to formalise a PPA, we are securing ensuring a
long-term, sustainable power solution that aligns with our development
timeline."

 

Conclusion

The integration of hydropower into the Orom-Cross development plan underscores
Blencowe's strategic vision to establish a low-cost, high-purity, and net-zero
graphite operation. As the Company advances its DFS and project financing
discussions, securing sustainable energy further enhances Orom-Cross's appeal
to global investors, end-users

Blencowe remains focused on delivering a world-class graphite project with
industry-leading sustainability credentials and looks forward to providing
further updates as the PPA process advances.

 

Figure 1:  Isimba Hydroelectric Power Station, Uganda

 

 

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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