REG - Jangada Mines PLC - Investee Company Update: Blencowe Resources

Jangada MinesAnnouncement

04/09/2023 09:00

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RNS Number : 2697L  Jangada Mines PLC  04 September 2023

Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector: Mining

 

Jangada Mines plc ('Jangada')

 

Investee Company Update: Blencowe Resources PLC

 

Jangada Mines plc is pleased to note the announcement released by Blencowe
Resources PLC (LON:BRES) in which it holds a c. 10% interest. The announcement
is set out below without material changes. 

 

Start of Blencowe Resources PLC announcement

 

Date: 4 September 2023

 

Blencowe Resources Plc ("Blencowe" or the "Company")

 

Completion of 100t Bulk Sample underlines high quality graphite product from
Orom-Cross

 

Highlights

·    Blencowe has now successfully completed critical pre-qualification
metallurgical test work with 100t bulk sample works concluded in China.

·    Commercial scale results continue to confirm that a high-grade, low
impurity concentrate (95-97% TGC) can be delivered from Orom-Cross graphite
project in Uganda.

·    Increased coarse flake percentage of final mix, together with higher
recoveries, will increment the overall weighted average selling price of the
Orom-Cross basket of end products.

·    Blencowe now has a considerably larger volume of concentrate product
to send to potential end users for further pre-qualification testing.

·    Positive feedback received from end users on Blencowe's high-quality
95-97% TGC product with significant interest from established Chinese industry
groups in progressing offtake arrangements.

 

Blencowe Resources Plc ("Blencowe" or the "Company"), is pleased to announce
that additional metallurgical test work on its Orom-Cross graphite project in
Uganda has now been completed by leading graphite technical specialist
laboratory, Jilin New Technology ("Jilin") based at Yanji in Northern China,
following our recent update on 14 August 2023.

 

This metallurgical test work is critical to understanding the commercial scale
process plant components, the quality of the end-product that Orom-Cross can
deliver as a high-grade graphite concentrate as well as the flake sizing
yield, and the operability of a process plant at Orom-Cross.  The 100t bulk
sample also provides significantly greater quantum of end product for end user
testing which is critical for the Definitive Feasibility Study.

 

Executive Chairman Cameron Pearce commented: "We are very pleased with these
results from the 100 tonne bulk sample program.  We utilized the services of
a very experienced graphite plant operator at Jilin for the pilot testing as
we believed this party's extensive knowledge over decades in the industry
would deliver superior net concentrate results, and I delighted to say they
have delivered us a great outcome."

 

Mr Pearce added: "We now have proof we can deliver a very high quality
graphite concentrate from Orom-Cross on a commercial scale, which is a key DFS
milestone.  In parallel we are testing the upgrade of this concentrate to
uncoated battery-ready 99.95% SPG (spheronised, purified graphite) and
expandables as the next important step to significantly value-add our end
products.

 

Finally, we also now have larger quantities of concentrate as bulk samples to
deliver to potential buyers and engage with strategic groups. These groups can
now proceed to test the concentrate and determine their level of interest for
binding offtake agreements which will be crucial for our project financing. We
believe these results will be attractive to a range of graphite consumers and
that Orom-Cross can help deliver the shortfall of graphite expected in the
market in the foreseeable future."

 

Background to the Test Work

Blencowe commissioned Jilin New Technology in partnership with Wuhan
University to undertake metallurgical test work on a 100t bulk sample which
covered material from both the Northern Syncline and Camp Lode areas within
Orom-Cross. The pilot plant program was designed to deliver the following
objectives:

 

1.    Confirm the commercial scale viability of processing the Orom-Cross
ores.

2.    Confirm a 95-97% TGC (Total Graphite Content) pure concentrate is
possible with low impurities (in particular thorium and vanadium).

3.    Confirm the laboratory testing models.

4.    Confirm the liberation process in order to maintain a majority of
Jumbo/XL/Large flakes within the concentrate.

5.    Confirm the process flow diagram for the pilot plant design as part
of the Definitive Feasibility Study.

6.    Deliver significant quantum of bulk concentrate to allow Blencowe to
initiate discussions with potential off-take partners.

 

Blencowe is pleased to announce that the pilot plant process has successfully
delivered on all of the above objectives.

 

The optimisation of the process (on the basis of the previous laboratory
testing) has been very successful with the pilot plant methodology further
improved and able to deliver a shorter overall processing of the ore, whilst
improving the metrics of the concentrate delivered.

 

A shorter processing cycle has the benefits of lower capital expenditure and
lower operating costs, both of which will enhance the overall Orom-Cross
project financials.

 

The streamlined processing design has also realised increased recoveries of
the more valuable larger +50mesh flake from 6.5% to 9.5% yield (within overall
basket of end products), whilst increasing overall large flake yield by
approximately 2% and increasing overall concentrate recoveries to over 94%.
Again, this will add further value to the project financials.

 

The additional metallurgical test work to date shows a robust flowsheet
capable of repeatable metallurgy for a wide range of feed samples from
Orom-Cross, which will now be used directly for reference in the actual
concentrator engineering design for the Definitive Feasibility Study.

 

End of Blencowe Resources PLC announcement

 

**ENDS**

 

For further information please visit www.jangadamines.com
(http://www.jangadamines.com/)  or contact:

 

 Jangada Mines plc                     Brian McMaster (Chairman)  Tel: +44 (0)20 7317 6629
 Strand Hanson Limited                 Ritchie Balmer             Tel: +44 (0)20 7409 3494

 (Nominated & Financial Adviser)       James Spinney

 Tavira Securities Limited             Jonathan Evans             Tel: +44 (0)20 7100 5100

 (Broker)

 St Brides Partners Ltd                Ana Ribeiro                jangada@stbridespartners.co.uk

 (Financial PR)                        Isabel de Salis

 

 

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