Date: 13 November
2024
Blencowe Resources
Plc
("Blencowe" or the
"Company")
Blencowe Commences 6,700m
Drilling Programme at Orom-Cross
Final Major Milestone within DFS
underway
Blencowe Resources Plc (LSE: BRES) is pleased
to announce that it has commenced the 6,700 metre resource drilling
programme, marking the final major workstream required for the
completion of the Definitive Feasibility Study ("DFS") for the
Orom-Cross graphite project in Uganda.
With the funding received from the recent
capital raise the Company has now triggered the drilling programme,
seeking a significant expansion of the JORC Standard Resource and
Reserves for Orom-Cross. The drill programme will target
extensions to the existing Northern Syncline and Camp Lode deposits
as well as upgrading the overall Resource classification.
There will also be a step-out campaign to outline additional
resources in a nearby target zone which, if successful, will add an
exciting new high grade deposit into the Orom-Cross
Resource.
The additional Reserves will allow Blencowe to
both increase the scale of production tonnage earlier in the mine
life and to extend the life of mine, delivering a substantial
impact on project economics and the final DFS results.
Highlights:
·
Value
Addition: Additional resources will underscore
the scale and continuity of the graphite deposit at Orom-Cross,
estimated at 2-3 billion tonnes overall.
·
Step-Out:
Drilling in new target areas within the tenement aims to
increase mineral resource and confirm extensions within this vast
graphite deposit.
·
Further Resources and
Reserves: Incremental drilling on the existing
deposits can significantly increase the JORC Standard Reserve,
translating to higher production volumes and an extended life of
mine
·
Enhanced DFS
Economics: Increased production volumes and
longer life of mine would have a materially positive impact on the
DFS result.
Blencowe has commenced mobilisation and
execution for its latest drilling campaign at the Orom-Cross
project. Experienced drilling partner ADT Africa
(www.adtafrica.com) will once again
undertake this programme, under the guidance of Minrom Consulting
(www.minrom.com), Blencowe's
geological and technical partner.
The programme aims to expand both the JORC
Standard Resource and Reserves, which currently stand at 24.5Mt at
6.0%TC (total carbon). Drilling will also support data
required for geotechnical design confirmation for pit designs, as
well as material strength characteristics for crushing and milling
designs within the DFS.
ADT Africa will now mobilise drill rigs and
personnel to site shortly and commence drilling thereafter.
The entire programme is scheduled to span approximately 2-3 months,
with regular market updates to follow. A revised JORC
Resource is anticipated after drilling and assays are
completed. Additionally, Blencowe will establish the first
permanent camp at Orom-Cross, in preparation for the construction
phase, targeted for 2H 2025.
Cameron Pearce, Executive Chairman,
commented;
"We are confident this programme will significantly extend our
JORC Resource and Reserve base and we will be working closely with
our technical partners to deliver the best results possible in the
shortest timeframe, feeding directly into the DFS. We are
especially excited to be drilling a new deposit which may
ultimately deliver further higher grade tonnes into our
project. Higher production volumes will make a substantial
difference to the NPV within the DFS
modelling."
"As a result of successfully completing bulk sample test work
over the past 12 months to become pre-qualified, combined with our
evolving downstream SPG strategy that will give Orom-Cross a nearby
offtaker for life of mine, we can now expect sell more product than
we originally believed was possible within the PFS. This
increase in demand supports our decision to build up Reserves
beyond initial PFS expectations, aligning with the significant
market need for high-quality graphite."
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.
In 3Q 2024 Blencowe introduced a Joint Venture
concept with experienced downstream graphite processing partners to
ultimately produce upgraded 99.95% SPG in Uganda. This
strategy has several key advantages plus substantial cost savings
which will assist deliver a world class project once DFS is
completed.