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#BRES Blencowe Resources PLC – Corporate Presentation

Blencowe Resources is pleased to announce the release of an updated presentation following the completion of the DFC grant.

The presentation can be viewed here and can be found on the Company’s website at https://blencoweresourcesplc.com/presentation/

For further information please contact:

 

 

  Blencowe Resources Plc

Sam Quinn

 

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

Investor Relations

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

 

Tavira Financial

Jonathan Evans

Tel: +44 (0)20 3192 1733

jonathan.evans@tavira.group

 

First Equity Limited

Jason Robertson

Tel: +44(0)20 7330 1833

jasonrobertson@firstequitylimited.com

 

Twitter https://twitter.com/BlencoweRes

LinkedIn https://www.linkedin.com/company/72382491/admin/

#BRES Blencowe Resources PLC – DFC Grant Completed

Orom-Cross is the first pre-production graphite project to achieve support from the Development Finance Corporation (“DFC”), a USA government backed finance provider

DFC to co-fund the Definitive Feasibility Study (“DFS”) and also be lead partner for the project financing of the Orom-Cross into production

Highlights:

  • Ground-breaking technical assistance agreement signed with tier one financial institution to provide Blencowe with significant funding for DFS programme.
  • US$5 million to be input by the DFC as a grant, with a 20% upfront contribution (US$1 million) to be paid immediately.
  • Further DFC payments will be made upon as-agreed feasibility study milestones being achieved.
  • DFC is the United States of America’s (“US”) leading development finance institution that partners with the private sector to provide finance solutions for project development in markets deemed as critical to US interests.
  • DFC is geared to provide funding assistance for Orom-Cross as part of the US Government’s strategic drive to secure a reliable supply chain of critical minerals and metals, within its wider US$1 trillion Biden-renewables strategy.
  • As part of the US$5 million Technical Assistance Grant (“TAG”) the DFC has a right of first refusal on commercial terms to arrange project financing for the Orom-Cross project, which may deliver Blencowe with a potential full funded solution to bring Orom-Cross into production with support from the tier 1 major financial institution.
  • The DFC partnership opens up the potential for Blencowe to consider a larger scale project with potentially far greater returns within the DFS. This will have material ramifications on overall Orom-Cross project value ahead.

 

Blencowe Resources Plc (“Blencowe” or the “Company”) (LSE: BRES) is pleased to announce it has signed a US$5 million agreement with the DFC in order to provide substantial funding for the Orom Cross DFS programme, via a Technical Assistance Grant.  The DFC is a proxy for the US Government which funds the organisation and ultimately sets its vision, parameters and funding distribution.

Cameron Pearce, Executive Chairman commented;

“This funding relationship with the DFC is a unique and game-changing event for Blencowe. To the best of our knowledge there has been no other graphite project worldwide that has received a similar type grant to date from the DFC.  We appreciate and we value this support and we will do everything we can to build their trust within this relationship, to ensure we deliver a high quality project together.

 

We believe that that having DFC as our strategic project partner substantially de-risks Orom-Cross and provides us with the means to deliver a world class project from here.  Blencowe presented an excellent US$482 million NPV for Orom-Cross within the Pre-Feasibility Study last year but we are now optimistic that we can deliver an even greater value NPV within the Definitive Feasibility Study as we can expand the project horizons. 

 

With the support of the DFC, we can address one of the major challenges and risks to any mining being the clear pathway to fund the project into production. We now have the opportunity to build the Orom-Cross project into a world class project with the comfort of a world class strategic partner.

 

Graphite demand is rising fast and will continue to do so.  It is one of the under-rated but key components of the lithium-ion battery and it is irreplaceable in this regard.  As such any future anticipated surge in demand for these batteries, not just for electric vehicles but for energy storage in all other renewable capacities, will continue to accelerate demand for graphite.  We now have the means to deliver one of the leading graphite projects in the world and a highly incentivised tier one strategic partner with whom we will work with to do that.”

 

DFC Technical Assistance Grant (TAG)

This is an innovative funding mechanism for the DFC to become involved at an early stage with key projects that they consider to be within their direct scope and strategy.  As Orom-Cross contains an estimated 2-3 billion tonnes of graphite and is one of the largest, high quality deposits worldwide it has considerable long term appeal to the DFC.  Graphite remains high on the US Government critical metals and minerals list, hence this relationship with Blencowe opens a potential supply chain for high value end-product over a very long life of mine.

DFC has been working closely with Blencowe through this TAG process and both the Company and the Orom-Cross project have been subjected to all necessary due diligence in order to progress DFC interest into this monetised initial funding solution.  Both parties see considerable long term value in their association with one another and Blencowe is confident this relationship will assist to provide a larger project funding solution ahead.  One of the key terms within the TAG Agreement is for DFC to be mandated to provide financing for the full Orom-Cross project on commercial terms.

Prospective new graphite producers need to think outside the box to find innovative funding solutions in order to deliver their projects and the DFC relationship provides this for Orom-Cross.  Not only does the US$5 million grant cover a significant portion of the DFS costs, which materially reduces the dilutionary impact to Blencowe of funding the full DFS itself, but it also provides a highly motivated full mine implementation funding partner ahead.  Furthermore, the credibility associated with partnering one of the leading tier one financial institutions worldwide will open a variety of other relationships ahead as key players in the graphite market (including end user OEMs) can see a new high quality graphite project emerging that now has a more certain pathway to production.

Blencowe will immediately request the upfront payment of the initial 20% of the TAG (US$1 million), which together with the Company’s existing funds provides the means to continue DFS work underway and deliver the next as-agreed milestone payment with DFC.  Once this next milestone is achieved further DFC funds are unlocked and so on, until the full grant is utilised and ultimately the DFS is completed.

One substantial advantage that now comes into play with the DFC relationship is that Blencowe is able to consider a larger-scale production strategy than it could do under the base-case scenario that the Company was considering whilst funding solo.  The implications of this are enormous and the Company will provide a further update on this once the revised strategy is finalised.  The expectation would be for a larger project from day one with a downstream processing facility built in-country to produce an uncoated battery-ready 99.95% SPG product.  These factors above will ultimately deliver a considerably higher Net Present Value than the US$482 million NPV achieved within the 2022 Pre-Feasibility Study.

About International Development Finance Corporation

The DFC is the primary US Government finance institution set up to provide financially sound funding solutions for private-sector initiatives pertaining to critical challenges facing the world, in this case the drive towards increased sustainability across the planet.  It is an agency of the United States federal government and represents US interests.

DFC’s lending capacity is used to provide loans, guarantees, equity investments and political-risk insurance for private-sector led development projects, feasibility studies and technical assistance.  DFC invests across several sectors with stated goals of empowerment, innovation, investment into Africa, green energy and climate change.

Orom-Cross is directly linked with several of these goals.  This project may ultimately become one of the largest graphite producing operations in the world over a very long mine life, delivering an end-product in a sustainable manner which is a non-replaceable input component to lithium-ion batteries.  Demand for graphite is accelerating at a rate where it is doubling every few years, and is expected to continue growing exponentially into the future.  Graphite is therefore high on the US Government critical metals and minerals list and assisting to open up long term supply chain of graphite is a key strategy.

Orom-Cross will also deliver a ‘green’ graphite product through a variety of production initiatives, including the use of hydro-electric power for all mining and processing energy requirements.  Orom-Cross aims to become one of the leading sustainable mining projects worldwide and this is a very important component of the DFC charter and critical within a rapidly changing landscape where every participant along the EV supply chain will be audited on their sustainability credentials by OEMs.

Orom-Cross’s potential ability to aid in the further development of the Ugandan economy, empowering its population and driving investment and future development has also proved attractive to the DFC.

 

For further information please contact:

 

 

  Blencowe Resources Plc

Sam Quinn

 

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

 

Investor Relations

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

 

Tavira Financial

Jonathan Evans

Tel: +44 (0)20 3192 1733

jonathan.evans@tavira.group

 

First Equity Limited

Jason Robertson

Tel: +44(0)20 7330 1833

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.  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.

#BRES Blencowe Resources PLC – Bulk Sampling Completed

Completion of 100t Bulk Sample underlines high quality graphite product from Orom-Cross

 

Highlights:

·    Blencowe has now successfully completed critical pre-qualification metallurgical test work with 100t bulk sample works concluded in China.

·    Commercial scale results continue to confirm that a high-grade, low impurity concentrate (95-97% TGC) can be delivered from Orom-Cross graphite project in Uganda.

·    Increased coarse flake percentage of final mix, together with higher recoveries, will increment the overall weighted average selling price of the Orom-Cross basket of end products.

·    Blencowe now has a considerably larger volume of concentrate product to send to potential end users for further pre-qualification testing.

·    Positive feedback received from end users on Blencowe’s high-quality 95-97% TGC product with significant interest from established Chinese industry groups in progressing offtake arrangements.

 

Blencowe Resources Plc (“Blencowe” or the “Company”), is pleased to announce that additional metallurgical test work on its Orom-Cross graphite project in Uganda has now been completed by leading graphite technical specialist laboratory, Jilin New Technology (“Jilin”) based at Yanji in Northern China, following our recent update on 14 August 2023.

 

This metallurgical test work is critical to understanding the commercial scale process plant components, the quality of the end-product that Orom-Cross can deliver as a high-grade graphite concentrate as well as the flake sizing yield, and the operability of a process plant at Orom-Cross.  The 100t bulk sample also provides significantly greater quantum of end product for end user testing which is critical for the Definitive Feasibility Study.

 

Executive Chairman Cameron Pearce commented:

 

“We are very pleased with these results from the 100 tonne bulk sample program.  We utilized the services of a very experienced graphite plant operator at Jilin for the pilot testing as we believed this party’s extensive knowledge over decades in the industry would deliver superior net concentrate results, and I delighted to say they have delivered us a great outcome.”

 

Mr Pearce added:We now have proof we can deliver a very high quality graphite concentrate from Orom-Cross on a commercial scale, which is a key DFS milestone.  In parallel we are testing the upgrade of this concentrate to uncoated battery-ready 99.95% SPG (spheronised, purified graphite) and expandables as the next important step to significantly value-add our end products. 

 

Finally, we also now have larger quantities of concentrate as bulk samples to deliver to potential buyers and engage with strategic groups. These groups can now proceed to test the concentrate and determine their level of interest for binding offtake agreements which will be crucial for our project financing. We believe these results will be attractive to a range of graphite consumers and that Orom-Cross can help deliver the shortfall of graphite expected in the market in the foreseeable future.”

 

Background to the Test Work

 

Blencowe commissioned Jilin New Technology in partnership with Wuhan University to undertake metallurgical test work on a 100t bulk sample which covered material from both the Northern Syncline and Camp Lode areas within Orom-Cross. The pilot plant program was designed to deliver the following objectives:

 

1.    Confirm the commercial scale viability of processing the Orom-Cross ores.

2.    Confirm a 95-97% TGC (Total Graphite Content) pure concentrate is possible with low impurities (in particular thorium and vanadium).

3.    Confirm the laboratory testing models.

4.    Confirm the liberation process in order to maintain a majority of Jumbo/XL/Large flakes within the concentrate.

5.    Confirm the process flow diagram for the pilot plant design as part of the Definitive Feasibility Study.

6.    Deliver significant quantum of bulk concentrate to allow Blencowe to initiate discussions with potential off-take partners.

Blencowe is pleased to announce that the pilot plant process has successfully delivered on all of the above objectives.

 

The optimisation of the process (on the basis of the previous laboratory testing) has been very successful with the pilot plant methodology further improved and able to deliver a shorter overall processing of the ore, whilst improving the metrics of the concentrate delivered.

 

A shorter processing cycle has the benefits of lower capital expenditure and lower operating costs, both of which will enhance the overall Orom-Cross project financials.

 

The streamlined processing design has also realised increased recoveries of the more valuable larger +50mesh flake from 6.5% to 9.5% yield (within overall basket of end products), whilst increasing overall large flake yield by approximately 2% and increasing overall concentrate recoveries to over 94%.  Again, this will add further value to the project financials.

 

The additional metallurgical test work to date shows a robust flowsheet capable of repeatable metallurgy for a wide range of feed samples from Orom-Cross, which will now be used directly for reference in the actual concentrator engineering design for the Definitive Feasibility Study.

 

#BRES Blencowe Resources PLC – Bulk Sampling Update & China Visit

Highlights:

·    Blencowe has successfully completed a critical component of the Definitive Feasibility Study (“DFS”), with the successful scaled commercialisation of the flowsheet within the bulk sample processing at Chinese pilot plant graphite production facility.

·    Results continue to highlight a high-grade, low impurity concentrate can be delivered in bulk from Orom-Cross.

·    Several meetings held with leading Chinese graphite offtake firms seeking both large flake and fines concentrates.

·    Ugandan mining officials visited China with Blencowe and were shown the process facility in support of the project.

·    Blencowe now approached for downstream processing opportunities.

Blencowe Resources Plc (“Blencowe” or the “Company”), is pleased to provide an update on the 100 tonne bulk sample processing program currently underway. The work is being completed by a leading graphite technical specialist firm, Jilin New Technology, based in Yanji Province in northern China.  This experienced graphite facility has been conducting similar test work on several other leading East African graphite projects over the past few years.

The Company is expecting the bulk sample test program to be completed by the end of August.

Senior Company personnel travelled to China recently to review the progress on the bulk sample processing and broaden relationships in this key market.  Accompanying the COO was the Company’s Ugandan Country Manager and a representative of the Ugandan Directorate of Geological Survey and Mines (DGSM), with the express purpose of evaluating the progress of the processing and to demonstrate the full process for the Ugandan Government.

Following a refinement of the Pre-Feasibility Study processing methodology by Wuhan University specialists, Blencowe wished to confirm directly with the pilot plant operators the expected improvements in both overall recovery and concentrate grades and secure early samples for delivery to potential offtake partners, following a marked increase in interest for the projects’ concentrate within China. The 100 tonne pilot plant process is currently nearing completion and to date it is confirming the commercial processing viability of the Orom-Cross ores. The Company also visited operating graphite plants and graphite processing equipment suppliers.

Following the distribution of concentrate samples to potential end users from the IMO test work and Wuhan University 150kg test work, several large downstream offtake processors requested meetings to discuss timing and availability of the high-grade, low impurity concentrates from the Orom-Cross project. The offtake meetings involved firms seeking substantial quantities of both larger flake concentrates and fines feedstock for the SPG processors. Several downstream processing firms have expressed interest in opportunities to explore in-country downstream processing of the Orom-Cross concentrates and Blencowe will consider this within the DFS that is underway.

Blencowe was pleased to be able to escort a representative of the Ugandan Directorate of Geological Survey and Mines to view the final processing of the bulk sample. Blencowe invited the DGSM representative to view the process in order to continue to develop a better understanding of the processing technology involved, to foster a deeper overall understanding of the project within Uganda, and to continue to work in partnership with the Government in order to develop the project.

 

For further information please contact:

 

 Blencowe Resources Plc

 Sam Quinn

 

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

 

Investor Relations

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

 

Tavira Financial

Jonathan Evans

Tel: +44 (0)20 3192 1733

jonathan.evans@tavira.group

 

First Equity Limited

Jason Robertson

Tel: +44(0)20 7330 1833

jasonrobertson@firstequitylimited.com

 

Blencowe Resources #BRES – CEO Video Interview

Blencowe Resources (BRES:LON), is pleased to share a recent interview with CEO Mike Ralston on the Proactive Investors platform.

Within this video interview, Blencowe CEO Mike Ralston provides further detail relating to the recently announced positive metallurgical test work results from Orom-Cross by the leading Chinese graphite technical specialist laboratory (based at Wuhan University) where open cycle floatation tests produced recoveries between 92-94% (previously 90%) and concentrate grades consistently ranging  between 95-98% for all graphite mesh sizes.

In the interview, Mr. Ralston also updates on progress with securing a $5 million grant from the US International Development Finance Corporation (“DFC”).

 

Click on the link below to watch: https://www.youtube.com/watch?v=tgdVG1lvlZM&ab_channel=ProactiveInvestors

Interested investors can also sign up to the Blencowe Newsletter at the following link:

https://blencoweresourcesplc.us13.list-manage.com/subscribe?u=ba87c801d05702dc7b8d75a3b&id=bd90aec04f

For further information, please contact:

Blencowe Resources Plc

Sam Quinn (London Director)

www.blencoweresourcesplc.com

 

+44 (0)1624 681 250

info@blencoweresourcesplc.com

Investor Enquiries

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

Tavira Financial

Jonathan Evans

Tel: +44 (0)20 7100 5100 jonathan.evans@tavira.group

First Equity Limited

Jason Robertson

Tel: +44 (0)20 7330 1883

jasonrobertson@firstequitylimited.com

 

 

Twitter: https://twitter.com/BlencoweRes

 

LinkedIn: https://www.linkedin.com/company/blencowe-resources/

#BRES Blencowe Resources PLC – Investor Webinar & Updated Presentation

Blencowe Resources (LSE:BRES), is pleased to announce that it will host a shareholder webinar and Q&A on Tuesday 9 May 2023 at 12:00pm UK time (19:00pm WST time).

The call will be hosted by Blencowe’s CEO, Mike Ralston who will discuss the Company’s recently announced news relating funding assistance for the further development of Blencowe’s Orom-Cross graphite project from the United States Government’s Development Finance Corporation.

Registration Details:

 

A recording of the webinar will also be made available on the Company’s website following the event. Investors are invited to register using the following link:

 

https://us02web.zoom.us/webinar/register/WN_AuIvebCoTJ-neLmgOWOaYQ

 

Shareholders who wish to do so are invited to submit questions via email to: info@blencoweresourcesplc.com

 

Latest Corporate Presentation:

 

An updated copy of the Company’s corporate presentation can be found on the Company’s website at:

https://blencoweresourcesplc.com/presentation/

 

Video Interview:

 

A link to a recent video interview Mike Ralston on the Proactive Investors platform is below:

 

https://www.proactiveinvestors.co.uk/companies/news/1013613/blencowe-resources-passes-key-milestone-with-dfc-1013613.html

 

Company Newsletter

 

Interested investors can also sign up for the Company Newsletter here:

https://blencoweresourcesplc.com/contact/

 

Contacts

Blencowe Resources Plc

Sam Quinn (London Director)

www.blencoweresourcesplc.com

info@blencoweresourcesplc.com

+44 (0)1624 681 250

Investor Enquiries

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

Tavira Financial

Jonathan Evans

Tel: +44 (0)20 7100 5100 jonathan.evans@tavira.group

First Equity Limited

Jason Robertson

Tel: +44 (0)20 7330 1883

jasonrobertson@firstequitylimited.com

VOX Market Podcast – Alan Green talks about #BOOM Audioboom, #ONDO Ondo InsurTech & #BRES Blencowe Resources

Alan Green, CEO of Brand Communications talks about the constant woes of being a Tottenham supporter, seizing the day and mentions the following companies:

Audioboom

Ondo InsurTech

Blencowe Resources

#BRES Blencowe Resources PLC – Warrant Expiry Extension

The Company has granted the board of directors an extension of 3 months for the expiry of certain warrants granted on 27 June 2018 and due to expire on 18 April 2023. The warrants will now expire on 18 July 2023 with the same exercise price of 4p as originally granted. The extension is given on the basis that the directors cannot currently exercise these warrants due to being in a closed period.

A further 2,250,002 4p warrants, which were granted to investors on 27 June 2018, have now expired and been cancelled.

Director

Amount

Price

Cameron Pearce

2,500,000

4p

Sam Quinn

1,750,000

4p

Michael Ralston & Sharon Ralston ATF the Ralston Family Trust

1,000,000

4p

Alexander Passmore

750,000

4p

For further information, please visit https://blencoweresourcesplc.com or the following:

Blencowe Resources

Sam Quinn

www.blencoweresourcesplc.com

Tel: +44 (0) 1624 681 250

info@blencoweresourcesplc.com

Investor Enquiries

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

Tavira Securities Limited

Jonathan Evans

Tel: +44 (0)20 7100 5100

jonathan.evans@tavira.group

First Equity Limited

Jason Robertson

Tel: +44 (0)203 192 1733

jasonrobertson@firstequitylimited.com

#BRES Blencowe Resources PLC – Appointment of Leading Engineering Firm to DFS

Highlights

·    Blencowe continues to progress the Orom-Cross project with appointment of a notable engineering firm to manage the Definitive Feasibility Study (“DFS”).

·    Appointment of CPC Engineering (“CPC”) of Perth to lead and develop the DFS for Orom-Cross.

·    CPC have extensive experience in African graphite projects and Blencowe will leverage this knowledge to refine the delivery of the Orom-Cross DFS.

Blencowe Resources Plc (“Blencowe Resources” or the “Company”) (LSE: BRES) is pleased to announce it has engaged leading engineering firm CPC Engineering to lead, deliver and sign off on the DFS for the Orom-Cross Graphite Project.

CPC has extensive experience in other leading graphite projects in East Africa, having completed the DFS for the Maniry Graphite Project (Black Earth Minerals, ASX: BEM) in Madagascar, as well as both the Mahenge (Black Rock Mining Ltd, ASX: BKT) and Chilalo Graphite (Evolution Energy Minerals, ASX: EV1) Projects in Tanzania and the scoping study for the Ancuabe Graphite Project (Triton Minerals, ASX: TON) in Mozambique. CPC also completed the detailed engineering, procurement, construction support and commissioning services for the Syrah Resources (ASX: SYR) Balama Graphite Project in Mozambique.

Blencowe is pleased to have partnered with a firm with extensive experience in both graphite and flotation circuits. CPC will work with the Company and various other Ugandan service providers in the delivery of the DFS for Orom-Cross Graphite in 2023.

The CPC works will include:

·    Optimisation of the process plant design, incorporating results of the various testwork programs from SGS, IMO and the pilot plant works (Jilin/China) along with CPC’s expertise in design and construction of graphite process plants.

·    Provide updated and optimised CAPEX and OPEX for project cost and schedule certainty;

·    Provide updated project costs and schedule for the Project non-processing Infrastructure.

·    Sign off on full DFS once completed to provide the third party approval from a recognised leading technical firm as required to ensure project funding support.

Cameron Pearce, Executive Chairman commented;

We are pleased to add another high-quality partner to the Orom-Cross Project.  CPC has a very impressive track record within the graphite market and we are now able to leverage off their skills, experience and relationships to ensure we deliver a first class DFS.

 

He continued “The graphite market continues to shift in our favour and we expect the supply-demand imbalance to widen further, as demand for graphite accelerates, given its material role within lithium-ion batteries. Orom-Cross has continued to exceed our expectations and we remain focused on delivering a world class project. CPC are recognised as one of the top tier engineering firms within the graphite sector and their sign off on the DFS will not only help optimise the Project, but also provide the credibility required for project funding and market support.” 

 

For further information please contact:

 

 

Blencowe Resources Plc

Sam Quinn

 

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

Investor Relations

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

 

Tavira Financial 

Jonathan Evans

Tel: +44 (0)20 3192 1733

Jonathan.evans@tavira.group

 

First Equity Limited

Jason Robertson

Tel: +44(0)20 7330 1833

jasonrobertson@firstequitylimited.com

 

Twitter https://twitter.com/BlencoweRes

LinkedIn https://www.linkedin.com/company/72382491/admin/

About CPC Engineering

CPC Engineering is a privately owned, Perth-based engineering company with 50 years’ experience providing reliable and practical engineering solutions to the resources industry, both nationally and internationally. CPC employs over 350 personnel and specialises in engineering design, construction and maintenance.

CPC Project Design is located at CPC Engineering head office in West Perth and is a multidiscipline engineering design, procurement, construction and project management team which has developed a reputation for delivering practical and cost-effective services to the resource industry.

CPC has extensive resource engineering experience with clients that include Syrah Resources, BlackEarth Minerals, Black Rock Mining, Albemarle, First Quantum, AngloGold Ashanti, Tronox Limited OceanaGold, Newmont, Barrick Gold and Sandfire Resources.

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 completed a successful Pre-Feasibility Study in 2022.  The Company has now moved 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, with only a small percentage of the overall deposit drilled to date. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.

#BRES Blencowe Resources PLC – Final Metallurgical Testing Programs

Commencement of Final Metallurgical Testing Programs for Orom-Cross Graphite Project as samples sent to both China and USA.

Highlights

·    20kgs of concentrate sent by air to technical experts Wuhan University of Technology (“WUT”) in China to begin final metallurgical test procedure.

·    This concentrate is the end product recently produced by IMO in Perth, which demonstrated high grade and low impurity chemical characteristics.

·    Preliminary testing on the 20kg sample to commence immediately in China ahead of 100-tonnes bulk sample studies, which will be sent to China in the near term.

·    Additional 5kgs of concentrate sent to leading US graphite technical firm American Energy Technologies Co. (“AET Co”) for SPG and expandables testing and to confirm Orom-Cross concentrate further upgrades efficiently to a >99.95% battery grade product.

Blencowe Resources Plc (“Blencowe Resources” or the “Company”) (LSE: BRES) is pleased to announce it has air-freighted 20kgs of concentrate from its Orom-Cross Graphite Project (“Orom-Cross”) to WUT in China, to commence final stage metallurgical testing.  Studies on this 20kgs concentrate, which was recently processed through the IMO test facility in Perth, will further define the characteristics of the Orom-Cross graphite product and is expected to ultimately lead to identifying offtake parties and thereafter signing binding offtake agreements for the sale of graphite concentrate.

WUT specialises in testing final concentrate products and defining their characteristics, in order to fine tune processing options and assess upgradability for use in batteries and other high value end applications. WUT works in close association with Jilin Huiyang New Material Technology Company (“Jilin”) who, as announced on 11 January 2023, are to receive 100 tonnes of raw material from Orom-Cross over the next few months to process through their existing processing facilities.  Blencowe will also send 150kgs of raw material to Jilin by air-freight as a precursor to the main bulk sample.

By sending this 20kgs prior to the 100 tonnes bulk sample Jilin will be able to better understand the properties and chemical characteristics of the Orom-Cross concentrate and will be able to adjust their pilot processing facility accordingly to take in the larger scale raw product when it arrives later. This testing by WUT/Jilin is expected to reconfirm historic results, which have demonstrated the concentrate from Orom-Cross is of a consistently high quality.

Once the 100 tonnes raw material is processed through Jilin’s facility it is anticipated that ~6 tonnes of high quality concentrate will be produced. This will represent a sample scale that is ~600 times larger than the 4Q 2022 IMO testing done in Perth and will confirm a high quality concentrate can be delivered in bulk from the Orom-Cross Project.  This is key to pre-qualification and securing future offtake agreements.

Jilin is also expected to use some of the ~6 tonnes concentrate to conduct spheronised purified graphite (SPG) testing, where the Orom-Cross concentrate is lifted from a 96-97% LOI to a >99.95% end product.  Once this is achieved and the OEM’s complete their own testing then Orom-Cross product may be deemed as pre-qualified and the Company will look to enter into binding offtake agreements for sale of products.

Blencowe is also now sending an additional 5kgs of concentrate to Chicago-based graphite specialist AET Co, which is a recognised industry expert in SPG and expandability testing.  AET Co has been directly involved in the upgrading of graphite concentrates for over a decade and is generally accepted as one of the leading technical specialists in graphite worldwide.  Blencowe will have a parallel test process occurring to ensure that it ultimately achieves the best possible outcome for upgrading concentrate to the >99.95% SPG product.  The AET Co testing is expected to take around 3 months to complete, after which Blencowe will know its end product has been tested all the way through to (lithium-ion) battery grade product.  Testing will also be done on the coarse flake products to ensure they are suitable for expandability, which will ultimately lead to offtake contracts for this higher-value product class also.

As lithium-ion batteries are expected to be the single most important demand pull for graphite ahead, completing QAQC to become certified as battery grade will be a significant milestone. Blencowe is confident its concentrate will successfully be highlighted as a low cost and pure SPG product once these tests have been completed, thereby commanding the best pricing.

 

Cameron Pearce, Executive Chairman commented;

We are now moving into the final stage of the Orom-Cross metallurgical work within the Definitive Feasibility Study, where our high quality 96-97% LOI concentrate will be upgraded to a more purified >99.95% product.  Beyond that there is only testing as required from the OEMs themselves to verify all data and if successful thereafter we can move to offtake agreements.  We are confident that our Orom-Cross concentrate will be verified ahead as a high-quality end-product and look forward to sharing the results of all of these tests once they are completed.

 

He added “Graphite demand is lifting fast and we believe it will continue to do so ahead.  The higher the quality of the end product the more likely we can lock in sales agreements and the better the prices we will achieve.  We expect graphite demand to continue to rise and shortages to unfold as there are only a limited number of new graphite projects with suitable, qualified end product moving into production over the medium term, and most resource analysts are forecasting a substantial deficit from 2025 which they predict will become even more pronounced by the end of the decade.”

 

For further information please contact:

 

 

Blencowe Resources Plc

Sam Quinn

 

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

Investor Relations

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

 

Tavira Financial 

Jonathan Evans

Tel: +44 (0)20 3192 1733

Jonathan.evans@tavira.group

 

First Equity Limited

Jason Robertson

Tel: +44(0)20 7330 1833

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 completed a successful Pre-Feasibility Study in 2022.  The Company has now moved 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, with only a small percentage of the overall deposit drilled to date. 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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