REG - Blencowe Resources - Receipt of Third Tranche from DFC

Blencowe ResourcesAnnouncement

10/04/2024 07:00

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RNS Number : 9418J  Blencowe Resources PLC  10 April 2024

Date: 10 April 2024
    Blencowe Resources Plc

("Blencowe" or the "Company")

 

 

Third tranche US$1 million Grant Funding received from US International
Development Finance Corporation

DFC Grant funds continue to support ongoing Orom-Cross Feasibility Study work

 

Blencowe Resources Plc (LSE: BRES) is pleased to announce the receipt of its
third tranche US$1 million funding from the United States International
Development Finance Corporation ("DFC").  This payment, representing a
further 20% of the full US$5 million DFC grant further supports the ongoing
Orom-Cross Definitive Feasibility Study ("DFS") costs, bringing the total
received to US$3 million since the agreement was signed in Sept 2023.

Key Milestones Achieved Driving DFS Progress:

·    Completion of SPG (spheronised, purified graphite) coating test work
and waste composite flake test work studies.

·    Initiation of a commercial study into a downstream processing
facility to deliver 99.95% uncoated SPG, located in Uganda.

·    Completion of expandability test work by leading US graphite
technical expert.

Blencowe successfully completed all of the above milestones to achieve this
latest disbursement of DFC funds, with results continuing to highlight
Orom-Cross as a standout graphite project with unique characteristics.

The successful coating of SPG product marks a crucial step towards product
qualification, positioning Orom-Cross favourably with tier-1 offtakers.
Additionally, achieving success in expandability testing enhances the
potential for high value niche sales for large flake products which could
drive the bulk of Orom-Cross revenues in the future.

Blencowe is exploring the potential establishment of a downstream processing
facility in Uganda to further upgrade the purity of the Company's graphite
from a 96% concentrate to 99.95% uncoated SPG.  This transformation would
elevate the value of the lowest value small flake concentrate from
approximately $600/tonne to around $2,500/tonne, setting Orom-Cross apart from
its peers and meeting significant demand for a 99.95% graphite product range
sourced from outside China.  Although still in its early stages, this
strategy promises significant value addition with commercial studies underway
assessing its integration into the core Orom-Cross production strategy.

Blencowe remains actively engaged with potential offtake partners worldwide,
fostering relationships with tier-1 offtakers who are evaluating product
samples constantly.  Blencowe's CEO and COO will travel to China and South
Korea over the next few weeks to further these discussions and to establish
key offtake relationships.

 

Cameron Pearce, Executive Chairman commented;

"I would like to thank DFC for their ongoing support, they are an outstanding
project partner and we are able to accelerate the pace of our studies with
their assistance.  Our DFS results underscore what an exceptional graphite
project Orom-Cross is, including its size and scale, low operating costs, low
capital start-up costs and high quality purified end products which are
building interest with key offtakers and end users.  We are committed to
adding value wherever possible to ensure that our DFS delivers a standout
result ahead."

 

Mr Pearce added "Blencowe is making significant strides with the feasibility
study as evidenced in this latest disbursement from DFC.  We are confident in
the continued expansion of the natural flake graphite market and we aim to be
one of the few projects that successfully navigates both the qualification and
funding processes to achieve production status ahead."

 

 

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.

 

 

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