REG - Blencowe Resources - Project Update

Blencowe ResourcesAnnouncement

02/01/2024 07:00

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RNS Number : 2744Y  Blencowe Resources PLC  02 January 2024

Date: 02 January 2024                    Blencowe Resources

 

Orom-Cross Graphite Project Update

 

Blencowe Resources Plc ("Blencowe" or the "Company"), is pleased to provide an
update on the progress of the Orom-Cross Definitive Feasibility Study ("DFS"),
and some of the expected activities in the current quarter.

Highlights:

·    Further 600 tonne bulk sample completed for shipment to China for
commercial scale testing and further OEM testing of processed 99.95% purified
SPG product. Testing to be carried out in Q1 2024. Interest in Orom-Cross
product has been high from various tier one battery off-takers.

·    Strong support for Orom-Cross from Government of Uganda and
specifically Ministry of Mines and Energy. Tenements and licenses in good
standing, relations remain strong.

·    Next milestone for further grant funding from the US Government
Development Finance Corporation is close to completion and will be announced
once funds have cleared.

·    DFS work continuing with activities in four countries, including
Uganda, China, US and Australia. Further environmental work continues in
parallel to infrastructure studies.

·    Downstream processing options which may provide transformational
value opportunities continue to be explored.

 

A further 600 tonnes of bulk sample graphite was mined at Orom-Cross in late
2023 in order to provide significantly more product for commercial scale
testing in China, using the same graphite expert (Jilin) who had successfully
completed the testing on the 100 tonne sample previously.  This product will
be shipped to China and testing will be done in 1Q 2024 and the resultant
concentrate will then be further processed to 99.95% purified product for OEM
testing thereafter.  This is ultimately expected to lead to offtake
agreements.  To date all testing has been extremely positive and as a result
there is plenty of interest in all Orom-Cross products from various tier one
battery off-takers.

The Government of Uganda, and specifically the Ministry of Mines and Energy,
have been very supportive of this latest bulk sample programme (with
representatives in attendance at the time of bulk sampling) and their backing
of Orom-Cross continues at all levels.  All tenements and licenses are in
good standing and relations remain strong.

Blencowe is near to delivering on the next milestone for further grant funding
from the US Government Development Finance Corporation ("DFC") and this will
be announced once funds are cleared.  This remains an important,
non-dilutive, source of funding for project work.

DFS work will continue with activities continuing in four countries, including
Uganda, China, US and Australia.  Further environmental work is also underway
and will continue in parallel to infrastructure studies in-country.
Orom-Cross benefits from substantial key infrastructure already in place near
to the project, including roads, communications and access to hydro-electric
energy from the national grid. Further announcements in relation to DFS
progress will follow as key deliverables are achieved.

Test work on expandability of purified coarse flake product will also be
finalised in 1Q 2024 with a leading graphite technical expert in Chicago,
USA.  This will determine the quality and characteristics of purified coarse
flake end products as opposed to purified smaller flake products which were
successfully tested in late 2023.  Orom-Cross project has a strong mix of
both coarse (+195) and smaller flake (-195) products, all of which are in
demand.

Executive Chairman Cameron Pearce commented:

"Blencowe continues to progress the DFS on a number of key fronts, working
towards a project strategy that ultimately delivers the most value for the
Company.  We have a unique value proposition at Orom-Cross, with low
operating costs, low capital costs and high grade of purity for all end
products, which together provide a very compelling case for this project
moving into production ahead of most of its peers.  We will also continue to
explore downstream processing options as this can potentially take Orom-Cross
to yet another level and we will report to market as we progress this.  All
in all we envisage an exciting year ahead as we complete the DFS and move the
project towards a decision to mine."

 

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 Securities          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 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
in the Definitive Feasibility Study phase shortly 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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