Blencowe Resources PLC DFS Update (5415A)
September 26 2022 - 2:01AM
UK Regulatory
TIDMBRES
RNS Number : 5415A
Blencowe Resources PLC
26 September 2022
Date: 26 September 2022 Blencowe Resources Plc
("Blencowe" or the "Company")
Definitive Feasibility Study Commences on Orom-Cross Graphite
Project
Highlights
-- Definitive Feasibility Study (DFS) commences with target completion date 2H-2023.
-- Engagement with specialist graphite engineering firm to manage the DFS.
-- Blencowe currently reviewing various options for strategic
alliances in key areas within the Orom-Cross project,
including;
o Offtake
o Funding
o EPC (Engineering, procurement and construction of plant)
Blencowe Resources Plc ("Blencowe Resources" or the "Company")
(LSE: BRES) is pleased to announce that it has commenced the
Definitive Feasibility Study for its flagship Orom-Cross graphite
project located in Uganda, East Africa.
This follows outstanding Pre-Feasibility Study results (NPV 8
US$482M: IRR 8 49%) as presented to the market in July 2022, which
have prompted the Company to move quickly on to this next stage of
project development. The DFS is the last step in terms of major
studies prior to the board making a decision to mine.
Blencowe is currently in the final stages of a process to select
an experienced independent engineering firm to manage and
ultimately sign off on the DFS. The Company anticipates announcing
the engineering partner in the near term.
The Company is also assembling a strong management advisory team
to assist with all key aspects of the study, including plant
design, engineering, infrastructure, mining, operations, sales and
marketing (offtake), environmental and social aspects, and all
project funding. This team will comprise of resource executives who
have considerable experience delivering projects through to
production in Africa, as well as specific graphite experience. They
will assist the existing Blencowe management team at all levels to
deliver a successful DFS.
Metallurgical test work already completed in both Canada and
Australia indicates that Orom-Cross can produce several
high-quality end products as a 96-97% LOI concentrate. Additional
metallurgical test work is anticipated in 2023, as part of the DFS,
to test the expandability, spheroidisation and spherical graphite
purification (SPG) properties, as the ability to cost-effectively
further upgrade Orom-Cross concentrates is expected to add
significant additional value to the project.
The Company will continue to keep the market informed of
progress as key milestones within the DFS process are
completed.
Cameron Pearce, Executive Chairman commented;
"We continue to make substantial progress at Orom-Cross, having
moved from project acquisition through JORC Resource drilling and
Pre-Feasibility Studies and now into the Definitive Feasibility
Study stage, all within just 2.5 years. The quality and value of
Orom-Cross graphite continues to inspire us to move as quickly as
possible towards a decision to mine but at the same time we are
ensuring all key areas are thoroughly analysed including third
party reviews by industry experts. Quality and consistency of end
product remain critical to building strong buyer relationships and
we will continue to test the properties of our graphite as
necessary to ensure our product is considered at the highest levels
compared to other graphite products available worldwide. This is an
ongoing exercise but more end product value is being added at each
stage."
He added "Graphite demand is growing fast as forecast and as the
market becomes increasingly more aware that there are very few new
graphite mines scheduled to commence production in the near term
this demand-pull will potentially drive further price rises ahead,
particularly for the products found at Orom-Cross. Blencowe owns
100% of one of the largest, high-quality graphite projects in the
world and is therefore uniquely placed and significantly leveraged
to take advantage of this emerging market moving forward."
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 Financial Tel: +44 (0)20 3192 1733
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 now moving into the Definitive
Feasibility Study phase as it drives towards first production.
Orom-Cross presents as a large, shallow open-pitable deposit,
with a maiden JORC Indicated & Inferred Mineral Resource
deposit of 24.5Mt @ 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.
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