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

Jangada MinesAnnouncement

02/01/2024 10:15

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RNS Number : 3614Y  Jangada Mines PLC  02 January 2024

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

 

2 January 2024

 

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.

 

Jangada Executive Chairman, Brian McMaster, said: "Since nearly all of global
graphite anode material came from China last year, which implemented a new
policy to regulate the export of some graphite products in December 2023,
diversity of supply has become increasingly important to support the energy
transition worldwide.  This places Blencowe, which is developing Orom-Cross,
a potential world class graphite project both by size and end-product quality,
in a very strong position."

 

The announcement is set out below without material changes. 

 

Start of Blencowe Resources PLC announcement

 

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."

 

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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