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:
Twitter https://twitter.com/BlencoweRes
LinkedIn 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.