TIDMBRES
RNS Number : 9912D
Blencowe Resources PLC
08 March 2022
Date: 08 March 2022
Blencowe Resources Plc
("Blencowe" or the "Company")
Blencowe Provides PFS Update for Orom-Cross Graphite Project in
Uganda
Blencowe moving to complete PFS on Priority Project by mid-year
as precursor to implementing First Graphite Production from
2023
Highlights
-- Blencowe acquired world class Orom-Cross graphite project
less than 2 years ago; has been on fast-track development towards
production ever since.
-- Extensive infill drilling programme was completed in 2021 to
provide updated JORC Resource estimate for use within
Pre-Feasibility Study ("PFS")
-- Phase Three Metallurgical test work near completion to
provide fact sheets to users on end products and process flows to
achieve them
-- Work underway in all facets to deliver high quality PFS by mid-year target date
Blencowe Resources ("Blencowe" or the "Company") is pleased to
provide an update on its ongoing Pre-Feasibility Study at its
priority Orom-Cross graphite project. Orom-Cross is a substantial
graphite deposit with an estimated 2-3 billion tonnes, of which the
first 20 years life of mine has already been drilled out. However
the deposit is so vast that this represents less than 1% of the
estimated graphite within the tenements. Furthermore, the graphite
is shallow and Blencowe will be mining to just 25 meters which
means low cost mining from a free dig open cut operation.
The Preliminary Economic Assessment ("PEA") for Orom-Cross
(completed September 2021) provided the basis for a large scale
75,000tpa graphite operation, however Blencowe has indicated that
it will scale this down in the early years to allow for a lower
risk, lower capex start-up, around 25,000tpa of high grade
concentrate. There will be provision for ramping this plant size
and production rate up quickly over the first ten years to
accommodate what is expected to be a surge in demand for flake
graphite, predominantly for use within lithium-ion batteries for
electric vehicles (EVs).
The Company is working closely with its specialist technical
partner Battery Limits to deliver a low cost mining operation that
will put Orom-Cross in the lowest percentile of worldwide graphite
producers, which not only provides more margin and earnings but
also de-risks the operation significantly. Low capital costs to
implement and low operating costs once in production are massive
advantages to any mining operation.
Currently Blencowe is awaiting the revised JORC Resource
estimate for Orom-Cross, based on the extensive infill drilling
programme from 2021, and its geological partner Minrom will provide
this update shortly. This JORC Resource is expected to increment
the 16Mt at 6.0% TGC that was announced to market in 2021 and
provide additional tonnes that can be utilised for a much longer
mine life than previously indicated in the PEA. In parallel work is
being completed on Phase Three metallurgical test work to refine
the end products that will be delivered as concentrate from
Orom-Cross, and these results are also expected shortly. Phase Two
met test work indicated a high quality array of end products that
should be sought after in the market, and Phase Three is expected
to underline this further by confirming the marketable
characteristics of the different mesh size products and producing
concentrates for consumer testing prior to pilot plant production
.
One of the key additions within the PFS (from the 2021 PEA) is
the expectation that Blencowe will deliver a pilot plant by 2023 in
order to product small quantities of these same end products to
pre-qualify sales into end users. This is seen as a necessary and
integral step in order to sell higher quantities of graphite
concentrate from 2025 onwards when the main plant is expected to be
commissioned.
Furthermore, Blencowe is also looking at all options to deliver
green graphite products via a project that leans heavily on
renewable energy and other sustainable components. This is seen as
a very important objective within the PFS and the strategy moving
beyond.
All other areas within the PFS are going to plan, with work
underway on all key areas including infrastructure, energy, roads,
water, tailings, logistics, sales and marketing, plus plant and
camp design.
Cameron Pearce, Blencowe's Executive Chairman commented;
"Blencowe is moving quickly to establish itself as a producer of
premier grade green graphite products, delivered at a low operating
cost to both de-risk and to ensure highest possible margins. The
PFS is exploring all options, including a pilot plant from 2023 as
a precursor to the main plant commissioned by 2025. Graphite demand
is forecast to expand considerably from 2025 onwards and Blencowe
wants to be positioned by then not only as a producer but also
ready and able to expand quickly and cost-effectively to take
advantage of growing worldwide demand. Events in Eastern Europe
over the past month have underlined the importance of supply chain
diversification and we aim to provide a high quality alternative
supply route for a key battery metal, within a low risk
location.
We have also recently added a highly prospective nickel sulphide
project into our portfolio as well, to further expand our
upside."
We have come a long way in the 2 years since we acquired
Orom-Cross, and the upswing in demand that we are seeing for the
products we will produce has fully justified our strategy. The next
important step will be to provide the market with a clear picture
of what our production plans ahead look like, including
pre-qualification of sales into end users over a longer period so
they can all fully understand the characteristics of the products
we will deliver prior to expansion into full production mode."
For further information please contact:
Blencowe Resources Plc www.blencoweresourcesplc.com
Sam Quinn Tel: +44 (0)1624 681 250
info@blencoweresourcesplc.com
Investor Relations Tel: +44 (0) 7891 677 441
Sasha Sethi sasha@flowcomms.com
Tavira Securities Tel: +44 (0)20 7100 5100
Jonathan Evans jonathan.evans@tavirasecurities.com
First Equity Limited Tel: +44(0)20 7330 1833
Jason Robertson jasonrobertson@firstequitylimited.com
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 and
Blencowe is moving through the Feasibility Study phase as it drives
towards first production targeted for 2023.
Orom-Cross presents as a large, shallow open-pitable deposit,
with a maiden JORC Indicated & Inferred Mineral Resource
deposit of 16.3Mt @ 6.0% Total Graphite Content. Development of the
resource is expected to benefit from a low strip ratio and free dig
operations, thereby ensuring lower operating and capital costs.
Akelikongo Nickel Project
Akelikongo is a highly prospective nickel sulphide exploration
project that has previously had considerable work completed by Rio
Tinto and Sipa to establish three mineralised lenses to date. It
represents an opportunity for Blencowe to add further value through
a targeted work programme that will seek to delineate higher grade
and thicker intercepts of nickel.
Nickel sulphide deposits are rare and valuable and the prospect
of further exploration success gives Blencowe suitable incentive to
develop this asset under a structured earn-in agreement, whereby
100% of the asset can ultimately be acquired for US$1.5m, all
payable in shares.
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