Home » Blencowe Resources (BRES) » Blencowe Resources #BRES – Annual Results for the year ended 30 September 2020

Blencowe Resources #BRES – Annual Results for the year ended 30 September 2020

Blencowe Resources Plc, the natural resources company focused on the development of the Orom-Cross Graphite Project in Uganda, is pleased to announce its audited financial results for the year ended 30 September 2020.

The Annual Report which includes an unqualified audit report and audited Financial Statement for the year ended 30September 2020 will be made available on the Company’s website at www.blencoweresourcesplc.com.  Hard copies will be posted to the Company’s shareholders.

For further information, please contact: 

Blencowe Resources

Sam Quinn



Tel: +44 (0) 1624 681 250



Investor Enquiries

Sasha Sethi

Tel: +44 (0) 7891 677 441



Brandon Hill Capital Limited

Jonathan Evans

Tel: +44 (0)20 3463 5000



First Equity Limited

Jason Robertson

Tel: +44 (0)20 7330 1883


Chief Executive Officer’s Statement

Dear Shareholders,

I am pleased to report on what has been a busy and productive year for Blencowe Resources Plc – our first full year as a public listed company following the successful Initial Public Offering (IPO) in 2019, and following up with the acquisition of the Orom-Cross Graphite Project in April 2020, and the subsequent re-admission to the London Stock Exchange (LSE) thereafter.  Orom-Cross is a world class graphite project located in Uganda, East Africa, and a location which the Company considers to be advantageous to develop a long term resource project ahead.

With assistance from lead broker Brandon Hill Capital, Blencowe was able to raise £2 million in new cash in April to provide funding for further work in 2020 at Orom-Cross, to fast-track development of this exceptional asset.  Blencowe remains bullish on significant long-term demand for graphite as it is a key component of the lithium-ion (Li-ion) battery which is used for most electric vehicles as well as other renewable energy storage.  Demand for electric vehicles and Li-ion batteries, and hence graphite, is forecast to grow exponentially from 2025 onwards, around the time the Company would expect to bring Orom-Cross into production.  Evidence indicates that this growth is already underway as most vehicle manufacturers are shifting from combustion engines to electrification on a grand scale over the course of this decade.

Since completing the acquisition of this project Blencowe has made significant strides towards its principal goals, being this the completion of an exploration programme to deliver a maiden JORC standard resource and delivering a wide range of positive early results.

Blencowe hit the ground running with a 69-hole (2,000 meter) diamond drill programme launched immediately after the acquisition.  Whilst there is little doubt that Orom-Cross has considerable quantities of graphite (estimated between 2-3 billion tonnes) a JORC Resource is required to define the area being considered for initial mining, and more extensive drilling in this location to understand all aspects for subsequent operations.

Using local drilling partner ADT and experienced South African geological firm Minrom, the drilling programme was designed to deliver enough resource for the anticipated first ten years of mine life, and to provide samples for further metallurgical test work to fully understand the nature of the end-product, as a graphite concentrate.  All indications to date suggest Orom-Cross can deliver a high quality end-product.  Despite the arrival of Covid-19 and subsequent lockdown in Uganda for a short period Blencowe was able to re-commence drilling late May and we completed this programme by the beginning of August, with samples ready to go to assay labs in Tanzania for prepping, and ultimately to South Africa (for JORC Resource) and Canada (metallurgical test work).

In the process the Company discovered a new high grade lode of graphite near to where we were already drilling, and added further holes to incorporate this deposit into the overall resource being considered.  We also confirmed the excellent nature of this ore body, and in particular the high percentage of larger flake sizes which carry more value.  Furthermore, the confirmation of substantial quantities of graphite near to surface will allow for Blencowe to ultimately mine at a low cost, which adds value to the project.

Based on the work completed to date, we believe that Orom-Cross exhibits all the characteristics of a potentially profit-making project and we are looking forward to further evaluating this potential by continuing to develop this asset moving forward.  Once the initial JORC Resource and associated metallurgical test work are completed in early 2021 the Company will move into the Feasibility Study phase, where all commercial parameters for a large scale mining operation are considered.  With a 21 year mining lease already secured and land compensation agreements in place and paid for, the move towards operations is de-risked.

Whilst we have achieved a considerable amount during the year, I believe it is important to note that the quality and potential of the Company’s core asset at Orom-Cross is clearly not yet reflected in the Company’s share price and market capitalisation. This will change as more work is completed and the size and scale of the asset is highlighted.

With a tight capital structure and strong support the Company is well placed to increase its profile and enhance its value proposition as we move ahead to define a maiden JORC Resource and establish the foundations for a substantial Ugandan graphite producer.

The strong progress that has been made is thanks to the hard work of our board and management team who have all worked hard across several continents to allow work to continue despite all the challenges we have faced.  In closing, I would also like to thank you – our shareholders – for your ongoing support. Our first year as a public company has been a positive one for Blencowe and I look forward to another active and successful year ahead.

Mike Ralston

Chief Executive Officer

“With a tight capital structure and strong support the Company is well placed to increase its profile and enhance its value proposition as we move ahead at Orom-Cross to define a maiden JORC Resource and establish the foundations for a substantial graphite producer ahead.” Blencowe CEO Mike Ralston

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