Jangada Mines PLC Investee Company Update: Blencowe Resources PLC (3663M)
January 11 2023 - 2:10AM
UK Regulatory
TIDMJAN
RNS Number : 3663M
Jangada Mines PLC
11 January 2023
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector:
Mining
11 January 2023
Jangada Mines plc ('Jangada')
Investee Company Update: Blencowe Resources PLC
Jangada Mines plc is pleased to note the announcement released
by Blencowe Resources PLC (LON:BRES) in which it holds a c. 9.5%
interest. The announcement is set out below without material
changes.
Start of Blencowe Resources PLC announcement
Date: 11 January 2023
Blencowe Resources Plc
("Blencowe" or the "Company")
Government Approval to Export Bulk Samples from Orom-Cross
Graphite Project Kick Starts Final Stage Metallurgical Testing
Highlights
-- Ugandan Government approves landmark one-off permit for
Blencowe to export bulk sample graphite from Orom-Cross for key
final testing
-- Underlines huge support for Orom-Cross advancement to
production at all levels within the country
-- Blencowe has successfully completed two rounds of smaller
sample metallurgical testing on Orom-Cross graphite during 2022,
using technical firms in Canada and Australia.
-- Mandate signed with experienced Chinese graphite processing
specialist Jilin Huiyang New Material Technology Company Ltd to use
its existing bulk pilot facility for final metallurgical
testing.
-- 100 tonnes of bulk sample to be mined immediately and sea-freighted to China.
-- Additional 150kgs sample to be mined and fast-track delivered
to China by air freight for initial off-site testing in same
facility.
Blencowe Resources Plc ("Blencowe Resources" or the "Company")
(LSE: BRES) is pleased to announce it has received an approval from
the Ugandan Ministry of Energy and Mineral Development to export
materials from its Orom-Cross Graphite Project to Chinese testing
facilities to enable final bulk metallurgical test work to be
undertaken in 2023. Blencowe has mandated Jilin Huiyang New
Material Technology Company Ltd ("Jilin") to complete this test
work in their existing pilot plant facility, which negates the
requirement for the Company to build its own bulk testing facility
on-site in the near term.
Jilin has over 30 years direct experience in graphite processing
and has completed similar bulk sample testing for other leading
international graphite companies in the past. This is a key step in
the process to pre-qualify Orom-Cross end-products as concentrates
through to OEMs in order to ultimately achieve binding offtake
contracts for production from the Project.
As Ugandan Mining Law does not allow for the export of
unprocessed raw materials this approval is a landmark decision by
the Government, who fully understand the need and requirement for
this testing to occur as a key action for the advancement of
Orom-Cross towards first production. Blencowe acknowledges and
appreciates the support of the Government of Uganda and the
Ministry of Energy and Mineral Development in this matter.
The export permits for 100t of bulk raw ore materials and 400
litres of local groundwater will enable the Company to export a
representative bulk sample from the initial 5 years of production,
which will be used to assess the metallurgical processes on a
commercial scale including differing plant components to maximise
the grade, recovery and flake sizing from the Project. The addition
of the groundwater sample will enable the test facilities to assess
the water characteristics in terms of the reagents required under
proposed site operating conditions.
Works to excavate and transport the bulk samples will begin
immediately and will be freighted by sea to China to have the
testing completed as quickly as practically possible. In addition,
150kgs of the same samples will be air-freighted to same Jilin
facility more quickly to undergo metallurgical testing and build
knowledge before the larger samples arrive.
Blencowe has already been able to share significant data with
Jilin having previously completed two stages of bench scale
metallurgical testing with SGS in Canada (30kgs) and more recently
a further round of testing via a small pilot plant (130kgs) in
Perth, Australia. This next-level proposed test in China, using
their existing infrastructure and experience, will be done on a
considerably larger scale, which will give all parties more
knowledge of the end concentrates that can be produced on a
production scale from Orom-Cross. It is hoped that this program
will initially lead to non-binding MOUs for offtake, and ultimately
to binding sale agreements for a substantial portion of the initial
50,000tpa product to be produced from stage one within Orom-Cross.
There may also be potential for EPC and funding contracts emanating
from this relationship, potentially providing one solution to the
CAPEX requirement for initial stage production.
Cameron Pearce, Executive Chairman commented;
"China is currently the most mature graphite market worldwide
and entering into an offtake relationship there would be very
valuable to us given the highly attractive economics at Orom-Cross,
which already has an NPV 8 of US$482M based on an initial 14-year
mine life, from just 2% drilled from our broader graphite
resource.
This bulk sample trial is significant as a precursor that
ultimately leads us to a full offtake agreement, which in turn
would enable us to kick start production with a critical mass of
product sold to drive profitability and cash flow. If successful it
can also lead to building an EPC relationship and potential funding
solutions.
The graphite market is evolving very quickly and we will see a
lot of change ahead as the world expands from current 15-20 million
electric vehicles (EVs) towards the targeted 100 million by 2030.
This in turn will drive up the demand for flake graphite as a
non-replaceable input required to produce lithium-ion batteries to
power these EVs and leading analysts forecast a 300% rise in world
demand for graphite by 2030. We are already seeing prices rise in
anticipation of this looming shortage. The Chinese graphite market
remains the largest and will likely remain so for some time ahead,
thus establishing a strong and commercial relationship with both
Chinese and other Asian partners is decisive for Orom-Cross and a
natural progression for the Company."
End of Blencowe Resources PLC announcement
**ENDS**
For further information please visit www.jangadamines.com or
contact:
Jangada Mines plc Brian McMaster (Chairman) Tel: +44 (0)20 7317 6629
Strand Hanson Limited Ritchie Balmer Tel: +44 (0)20 7409 3494
(Nominated & Financial James Spinney
Adviser)
Tavira Securities Jonathan Evans Tel: +44 (0)20 7100 5100
Limited
(Broker)
St Brides Partners Ana Ribeiro jangada@stbridespartners.co.uk
Ltd Isabel de Salis
(Financial PR)
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCDFLBFXFLBBBV
(END) Dow Jones Newswires
January 11, 2023 02:10 ET (07:10 GMT)
Jangada Mines (LSE:JAN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Jangada Mines (LSE:JAN)
Historical Stock Chart
From Jul 2023 to Jul 2024