TIDMBRES
RNS Number : 8032L
Blencowe Resources PLC
04 May 2020
Date: 04 May 2020 Blencowe Resources Plc
("Blencowe" or the "Company")
Maiden JORC Resource Drilling Program to Restart at Orom-Cross
Project
The Company is pleased to provide an update to the comprehensive
2020 JORC Resource diamond drilling program that initially
commenced on its Orom-Cross graphite project in Northern Uganda in
Q1 2020. In anticipation of a successful acquisition of the project
Blencowe initiated a 1,800 meter diamond drill infill program in
March, which was halted due to Covid lockdowns in Uganda from
beginning April. With safety of its staff and associated
contractors as the priority Blencowe shut down operations at
Orom-Cross pending a shift in Government policy. There is
anticipated easing of these restrictions hence drilling will
recommence shortly with the aim of completing all holes in
approximately one month.
Background
Orom-Cross is a potential world class graphite project both by
size and end-product quality, with a large component of high value
large flake product. A 21-year Mining Licence was issued by the
Ugandan Government in 2019, following extensive historical work on
the deposit.
Orom-Cross presents as a large, shallow open pitable mine, with
a resource estimated in excess of 3 billion tonnes of graphite.
Development of the resource is expected to benefit from a low strip
ratio and free dig operations, thereby providing lower operating
and capital costs. Coupled with the predominantly Jumbo, X-Large
and Large flake sizes of the deposit, the Company expects
Orom-Cross to provide significant margins on production.
Highlights
A summary of the 2020 work program to date is as follows:
-- A Lidar survey has been completed over lease areas providing
high quality topographical data which is critical for future mine
planning and design.
-- Exploration camp was established on-site in early Q1 2020.
-- Drilling commenced on the 1800m (59 hole) JORC Resource program in March.
-- Currently 25% of the drilling program has been completed
prior to Uganda going into Coronavirus lockdown. To-date visible
results have been highly encouraging and in line with management's
understanding.
-- Drill rigs remain on site ready to resume the remainder of
the program as soon as the Ugandan Government relaxes lockdown
measures (anticipated on or around 9 May 2020). No cases of
Covid-19 have been reported at Orom-Cross or in the surrounding
area.
-- Compensation Agreements with local landholders were agreed
and signed in Q1 2020, providing financial support to local
communities as Orom-Cross develops into a producing mine. No
further compensation payments are due to be made until the mine is
ready to commence production.
-- Favourable initial meetings with Ugandan Government officials were held in March on critical infrastructure assistance.
Details of JORC Resource Drilling Program
Under the Phase 5 exploration program commissioned by Blencowe
Resources, a diamond drilling exercise consisting of 1800m of
triple core HQ commenced in March to define a JORC (2012) Indicated
Resource. The area targeted for the drilling was identified
following detailed drilling, trenching and mapping in previous
exploration campaigns. The current drill program is designed to
delineate approximately 8 to 10 million tonnes to JORC standard, to
provide the initial resource for 10 years of mining, being a rate
of 800Kt per annum input into the plant. The area targeted
represents less than 1% of the total Orom-Cross graphite deposit.
Not only does this highlight the extraordinary size of the
Orom-Cross project, but the potential significant scalability of
development in the future.
This current drill program in part of the northern area, which
has also been identified as attractive for a potential plant and
associated infrastructure, is designed to confirm both the extent
and quality of the free dig material in the upper 30m.
The program consists of 59 holes, of which 15 holes have already
been completed (Figure 2), targeting the first 30m of the deposit
(total deposit from surface to depths of 60 -100m) and will be
sampled and logged onsite, with certified assay labs in Tanzania
and South Africa thereafter undertaking assaying and specific
gravity measurements.
[Please refer to the pdf file attached figures 1-3 that provides
detailed pictures of the drilling programme]
http://www.rns-pdf.londonstockexchange.com/rns/8032L_1-2020-5-4.pdf
As part of the Company's policy of supporting local Ugandan
business, the drilling contract was awarded to a local firm, ADT,
who had previously undertaken drilling on the deposit and thus have
considerable experience at Orom-Cross. Supervision of the drill
program and generation of the JORC Resource reports has been
awarded to Minrom Consultants from South Africa, the technical
consultancy firm who also has extensive knowledge of the project,
having managed the initial exploration programs for the previous
owners of the project over the past six years.
ADT also have extensive experience in Uganda as both mining
contractors and in logistics, thereby making them an ideal long
term partner for Blencowe as it develops Orom-Cross towards first
production.
The current lockdown in Uganda is expected to be lifted shortly
to enable drilling to resume as soon as practicably possible
thereafter. Two drill rigs currently on-site will be utilised with
the program expected to be completed in the first week of June, and
the subsequent JORC Resource expected in Q3 2020.
Blencowe's management team visited both South Africa and Uganda
in March to assess all work programs underway to ensure that
contractors are delivering to their best capabilities and that all
objectives are being met. During this visit key meetings were held
with local dignitaries on site at Orom-Cross in order to explain
the current ownership changes for the project as well as Blencowe's
ambition for Orom-Cross to become a notable graphite producing mine
over the next few years. These meetings were successful and there
is considerable local support at all levels.
At the same time management were privileged to meet senior
Members of Parliament representing the Orom-Cross area to discuss
goals, plans and strategies for the project. All parties are
aligned in their desire to see this project develop and offers of
support to Blencowe from these officials for key areas of
infrastructure required to assist with this development were
discussed. Blencowe greatly appreciates all support it is currently
receiving within country as it advances Orom-Cross.
Cameron Pearce Executive Chairman's commented;
"In anticipation of completing the deal to acquire Orom-Cross,
and being aware for the need to move forward as quickly as possible
with further critical work required to substantially advance this
project, Blencowe has hit the ground running fast. This means that
any delays due to Covid-19 lockdowns will not substantially impact
progress as work is already underway in all key areas, with several
workstreams continuing and others recommencing as soon as
practicably possible after the Covid-19 lockdown ends.
It is Blencowe's ambition to add value to Orom-Cross as quickly
as possible whilst ensuring at all times it performs to the highest
industry standards."
For further information please contact:
Blencowe Resources Plc
Cameron Pearce / Mike Ralston
Sam Quinn www.blencoweresourcesplc.com
Tel: +44 (0)1624 681 250
info@blencoweresourcesplc.com
Brandon Hill Capital Limited
Jonathan Evans (Corporate Finance) Tel: +44 (0)20 3463 5000
jonathan.evans@brandonhillcapital.com
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END
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