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#BRES Blencowe Resources PLC – Metallurgical Test Work Update

Larger sample confirms same high quality end product as previous metallurgical test work.

Highlights:

·   Blencowe successfully completes critical metallurgical test work on substantially up-scaled quantities of Orom-Cross composite mix, as per what was previously tested by SGS in Canada.

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

·    Duplication of bench scale testing results now completed through to bulk sample test stage.

·    Test work completed by leading Australian metallurgical test firm IMO.

·    Blencowe now has considerably more volume of end product to send to interested end users for testing.

Blencowe Resources Plc (“Blencowe” or the “Company”), is pleased to announce that additional metallurgical test work on its Orom-Cross graphite project in Northern Uganda has been completed by leading technical specialist firm IMO based in Perth, Australia. This work is critical to understanding the quality of the end-product that Orom-Cross can deliver as a high-grade graphite concentrate, as well as what the process flow will look like to achieve this on a pre-commercial scale.  It also provides significantly greater quantum of end product for end user testing which is critical for the Definitive Feasibility Study.

Blencowe appointed IMO to undertake metallurgical test work on material gathered from its drilling campaigns which covered both the Northern Syncline and Camp lode areas within Orom-Cross. The program was designed to deliver the following objectives:

1.  Confirm a 95-97% TGC (Total Graphite Content) pure concentrate is possible with low impurities (Thorium and Vanadium).

2.    Confirm ~90% recovery is achievable for this concentrate.

3.  Confirm the liberation process in order to maintain a high percentage of Jumbo/XL/Large flakes within the concentrate.

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

5.    Deliver bulk concentrate samples to allow Blencowe to initiate discussions with potential off-take partners.

Blencowe is pleased to announce that all 5 objectives have been met or exceeded in this latest round of test work.  Open cycle floatation testing produced recoveries between 90-92% and concentrate grades consistently range between 95-98% which are battery grade.

The additional metallurgical test work was commissioned to test the upgradeability of the bench scale test work completed by SGS in Lakefield. A total of 1,400kg was processed (as compared to 100kg within SGS test work) and all metallurgical test-work undertaken to date shows a robust flowsheet capable of repeatable metallurgy for a wide range of feed samples from Orom-Cross.

A total of eight rougher and cleaner flotation tests were carried out on the Master composite that culminated in the flowsheet that is atypical of similar graphite projects.  The flowsheet consists of a flash and rougher flotation stage followed by a primary cleaning circuit with a polishing mill followed by three stages of cleaner flotation. The intermediate concentrate is classified and then further upgraded in secondary cleaning circuits with stirred media mills (SMM) followed by cleaner flotation.

The proposed flowsheet was employed in a continuous pilot operation to determine the metallurgical response under typical operating conditions. The final concentrate graded 96.4% C(t) at 90.6% total carbon recovery which exceeded the company’s expectations and places the end product recovered at the higher end of the spectrum in comparison to its peers. 

Test work was focussed on the 5 points above and not geared towards optimising the flake size fractions.  As the resultant splits using an unoptimised circuit are within 5% of the fractions as determined by the original SGS bench scale works there may be further incremental value to be added by optimising ahead. The key takeaway from these results is that the scaling factors in the metallurgical testing will likely replicate the original test work and results through to commercial scale production.

At the end of this larger scale metallurgical program, approximately 80kg of concentrate was produced (versus 5-8kgs from SGS in Canada) which will be forwarded to potential end-users and project partners for additional test work on screening splits and grade analysis, as well as suitability for further downstream processing of the concentrate.

The design of the processing plant will be based on both the SGS and IMO test-work and best practice in similar operations. Importantly, the process requires no primary crushing or grinding of the ore, thus preserving the larger flake sizes, which is a material advantage over hard-rock graphite deposits.

 

Executive Chairman Cameron Pearce commented:

“We are delighted with these IMO met test results as they not only continue to underpin Orom-Cross concentrate as high quality in all key areas relevant to end users but the test work has highlighted that we can now deliver these end results on a much greater scale of raw material as processed.  This is a key steps towards commercial stage production testing in a pilot plant facility.  It also highlights the potential to increase the percentage of the more valuable coarse flake products through further optimisation of the processing circuits and this will be considered in the next round of testing. 

This latest set of results sets us up nicely for the bulk sample trial we will be conducting on 100 tonnes of Orom-Cross composite in 1H 2023 and if these same results are produced from that exercise we will be largely pre-qualified in terms of end products delivered as concentrate.”

 

 

 

 

 

 

 

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 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 moving into the Definitive Feasibility Study phase shortly 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.

Blencowe Resources #BRES – Approach from Potential Strategic Party in China

Blencowe Resources Plc (“Blencowe Resources” or the “Company”) (LSE: BRES) is pleased to announce it has received an approach from a group in China that has the potential to ultimately provide an offtake, funding and development scenario for its 100% owned Orom-Cross graphite project in Uganda.

Highlights:

  • Approach received from a strategic party in China with extensive experience in graphite.
  • Potential to provide offtake contracts and project funding solution for Orom-Cross.
  • Additional bulk samples to be delivered to China for further off-site testing.
  • Pilot plant strategy in Uganda suspended, removing material near-term capital requirement.
  • End-product samples as 96% LOI concentrate to be shipped to Chinese and European firms for trials to lift to 99.9995% LOI product for batteries.
  • Technical Data Sheets sent to prospective end users to confirm interest and support for Orom-Cross concentrates. Feedback, interest and discussions already underway.

Based on these discussions, the Company has agreed to send a bulk sample of ~100 tonnes from Orom-Cross to China as soon as possible to enable further metallurgical test work to be undertaken by the potential strategic party.  This is subject to the Company receiving necessary permits to move this raw material from Uganda, which are being sought immediately.

Blencowe has already been able to share significant data with the potential strategic party having previouslycompleted 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, would be done on a considerably larger scale which will give all parties more knowledge of the end product that can be produced in an enlarged scenario 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 a solution to the CAPEX requirement to production.

Given this interest out of China and the relatively short period to complete this test work over the next 6-9 months the Company has taken the decision to postpone its plans to build an on-site pilot plant facility of 2,000tpa at Orom-Cross. Binding offtake contracts to purchase Orom-Cross graphite would likely remove the need for a pilot plant, as the principal rationale for its implementation was to provide product to would-be offtakers to enable them to assess its viability for their own uses. A direct impact of this decision is that there is no longer a requirement to raise substantial cash (circa US$10M) in the near term via the equity markets to fund the on-site pilot plant.

The Company will continue to keep the market informed of progress on these discussions, as well as further key milestones achieved from the ongoing DFS (please see RNS of 26 September 2022 for further information).

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 NPV8 of US$482M based on a 14-year mine life from just 2% of our broader graphite resource as currently drilled out. 

We believe this bulk sample trial will prove highly significant and is potentially a precursor to a full offtake agreement and subsequent project funding, which in turn would enable us to kick start production with a critical mass of product sold to drive profitability and cash flow”.

The graphite market is evolving very quickly and we will see a lot of change ahead as the world drives towards 100 million expected electric vehicles by 2030. The Chinese market remains the largest by far, and will remain so for some time. Establishing a strong and commercial relationship with Chinese partners is therefore decisive and is a natural progression for the Company. Given this positive development we have elected to postpone any decision on a pilot plant on-site until these trials and discussions have reached a conclusion as it is expected a positive result will remove the need for a pilot plant, with the project instead moving straight into full development.  This decision will not only save us considerable cash outlay right now, but potentially expedite the development of Orom-Cross.”

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 Securities 

Jonathan Evans

Tel: +44 (0)20 3192 1733

jonathan.evans@tavirasecurities.com

 

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 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.

Blencowe Resources #BRES – Definitive Feasibility Study Commences on Orom-Cross Graphite Project

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.

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;

Offtake

Funding

EPC (Engineering, procurement and construction of plant)

This follows outstanding Pre-Feasibility Study results (NPV8 US$482M: IRR8 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

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@tavirasecurities.com

 

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 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.

Blencowe Resources #BRES relinquishes Akelikongo Nickel Project to focus on Orom-Cross

Blencowe Resources Plc (“Blencowe Resources” or the “Company”) (LSE: BRES) announces that is has terminated its agreement with SIPA Resources (“SIPA”) with respect to the Akelikongo nickel project.

The decision by Blencowe to terminate the agreement means it is no longer required to issue US$350,000 of shares  to SIPA as part of the consideration following the completion of Stage 1.  It also means that the US$500,000 spend obligation by February 2023, for Stage 2, is no longer required.

The decision to relinquish its exposure to the Akelikongo project has been driven primarily by the truly exceptional results from the Pre-Feasibility Study (PFS) on the Company’s flagship Orom-Cross graphite project, which yielded a post-tax NPV8 of US$482M and an IRR 49% (for more information please see 19 July 2022 RNS). Accordingly, the Company believes it is in the best interests of its shareholders to focus all of its attention and resources on unlocking the inherent value at Orom-Cross.

Blencowe has targeted bringing Orom-Cross into initial production before the end of 2023, in order to commence the pre-qualification process of selling end product as concentrate into offtake parties.  Given the disconnect between plc market valuation (US$5M market cap) and the value of the Orom-Cross Project (NPV US$482M) the Company is focused on completing an asset-level transaction to fund the project through development and into production. Further updates will be provided as and when appropriate.

Cameron Pearce, Executive Chairman commented;

“We have considered the merits of running two projects in parallel and at this particular point we believe that concentrating solely on our priority graphite project makes most sense.  The excellent PFS results for Orom-Cross reaffirmed its value. Whilst this has yet to be reflected in our public markets valuation, we are now seeing heightened interest from industry and private equity. Accordingly we believe now is the appropriate time to focus solely on Orom-Cross, whilst removing any unnecessary plc dilution at this depressed level. 

We do still see the synergistic benefits of another battery metal project near to Orom-Cross and we may revisit a nickel strategy in the future. However, we are seeing a fundamental shift in the graphite market right now with the price of small fines rising substantially over recent months as projected demand-supply issues finally begin to impact. The resource used in our US$482M NPV represents less than 2% of the total Orom-Cross resource base. We believe the scalability of Orom-Cross will hold significant appeal for prospective partners, particularly given a mining licence is already in place. We are focused on reaching this milestone and unlocking the value for all our stakeholders and look forward to updating shareholders in due course.”

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 Securities 

Jonathan Evans

Tel: +44 (0)20 3192 1733

jonathan.evans@tavirasecurities.com

 

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 is moving into the studies phase shortly 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.

Sovereign Metals #SVML – Kasiya Expanded Scoping Study Presentation

Sovereign Metals Limited (Company) is pleased to advise that an the Kasiya Expanded Scoping Study Presentation is available to download from the Company’s website at: http://sovereignmetals.com.au/company-presentations/ .

ENQUIRIES

 

Dr Julian Stephens (Perth)
Managing Director

+61(8) 9322 6322

Sam Cordin (Perth)
+61(8) 9322 6322

Sapan Ghai (London)
+44 207 478 3900

 

Nominated Adviser on AIM

 

RFC Ambrian

 

Bhavesh Patel / Andrew Thomson

+44 20 3440 6800

 

 

Joint Brokers

 

Berenberg

+44 20 3207 7800

Matthew Armitt

 

Jennifer Lee

 

 

 

Optiva Securities

+44 20 3137 1902

Daniel Ingram

 

Mariela Jaho

 

Christian Dennis

 

#SVML Sovereign Metals – Leading Market Position for Kasiya’s Graphite

·    

Graphite planned to be produced as a co-product from the Kasiya rutile operation is estimated to sit at the lowest end of the global flake graphite cost curve

·    

As one of the world’s largest flake graphite deposits, Kasiya has potential for a dominant market position due to production scale of a coarse flake, high purity and highly crystalline product which should be suitable for lithium-ion batteries and wider traditional industrial uses 

·    

Kasiya’s graphite flake size distribution compares favourably to industry peers suggesting potential to achieve a high graphite basket price

·    

Independent Life Cycle Assessment Study demonstrates Kasiya’s high quality natural graphite concentrate should have a significantly lower carbon footprint than Chinese-produced natural graphite

 

 China currently produces over 75% of the world’s natural graphite, almost 80% of the world’s synthetic graphite and 100% of the world’s natural graphite anodes used in lithium-ion batteries

 

 Each tonne of graphite produced from Kasiya is expected to have a Global Warming Potential of only 0.2 tonnes CO2e which represents 5x less greenhouse gas emissions compared to natural graphite produced in the Heilongjiang Province, China

·    

Recent independent studies published in the Journal of Industrial Ecology estimates global warming potential of synthetic graphite to be 20.6 t CO2e i.e., 103x that estimated for Kasiya’s natural graphite

·    

Updated Scoping Study for Kasiya on track and due for completion shortly

 

Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to report recent analysis of Kasiya Rutile Project’s (Kasiya) graphite co-product, one of the critical raw materials contained with the Kasiya deposit.

Natural graphite concentrate would be produced as a co-product from Kasiya, the world’s largest rutile deposit. Benchmarking of characteristics of Kasiya’s natural graphite demonstrate that it can be produced in line with the 2021 Scoping Study with:

·      one of the lowest potential production costs globally

·      extremely low carbon footprint versus hard-rock operations or synthetic graphite production

·      favourable flake size distribution suitable for a wide range of end uses including feedstock for the lithium-ion battery sector – technology crucial to tackling global climate change.

Sovereign’s Managing Director, Dr Julian Stephens commented: “Not only is Kasiya the world’s largest rutile deposit and one of the largest flake-graphite resources, but our latest graphite industry benchmarking also demonstrates the potential for Kasiya to be a globally dominant supplier and low-cost flake graphite producer at scale. Importantly, the very low graphite production costs at Kasiya should allow Sovereign to compete aggressively on price point across global graphite markets.

 

 

ENQUIRIES

Dr Julian Stephens (Perth)
Managing Director

+61(8) 9322 6322

Sam Cordin (Perth)
+61(8) 9322 6322

Sapan Ghai (London)
+44 207 478 3900

 

 

Nominated Adviser on AIM

 

RFC Ambrian

 

Bhavesh Patel / Andrew Thomson

+44 20 3440 6800

 

 

Joint Brokers

 

Berenberg

+44 20 3207 7800

Matthew Armitt

 

Jennifer Lee

 

Varun Talwar

 

 

 

Optiva Securities

+44 20 3137 1902

Daniel Ingrams

 

Mariela Jaho

 

Christian Dennis

Sunday Times – Who owns the Earth? The scramble for minerals turns critical

China controls the metals that are vital to the modern economy. Is the West’s fightback too late?

by Jon Yeomans and Fred Harter

Passengers passing through the new, £300 million terminal of Addis Ababa airport in Ethiopia are greeted by an array of signs in Chinese, directing them to their connecting flights across the continent.

Groups of transiting Chinese workers and engineers traipse through the arrivals and departures areas, often wearing matching hazmat suits and plastic goggles to guard against Covid-19.

They, and the Chinese-built airport, are a fitting symbol of the billions of dollars that China has ploughed into Ethiopia — and Africa — over two decades to fund giant infrastructure projects.

Addis is just one hub in a global web of Chinese influence, control and money that has arisen as the world’s second largest economy races to secure the minerals needed for the future generations ofelectric cars, wind turbines and batteries to drive the green revolution.

To a great extent, it is a race Beijing has already won….

…theoretically at least, in the most important minerals for the future green economy — nickel, cobalt, graphite, lithium and so-called rare earth metals — China could effectively turn on, and turn off, the world’s supply at will…

Ben Stoikovich, chairman of Aim-listed graphite miner Sovereign Metals #SVML, noted the contradiction in using China to process metals intended to drive the net-zero agenda. “We don’t know how it’s produced, we don’t know what chemicals they use, we don’t know just how polluting it is. So the upshot is our very clean ambitions are driven by quite dirty production methods,” he told a parliamentary meeting earlier this year.

Fight back

Belatedly, the response from the West has been to go shopping for assets — or to throw money at smaller miners. In 2019 the US merged its international development arms into the International Development Finance Corporation (DFC), charged with investing in projects across the globe and furthering US foreign policy, with the power to lend $100 billion.

Link here for the full Sunday Times article

#BRES Blencowe Resources – Placing

Highlights

 

· RAB Capital to invest £800,000 to become largest shareholder in Blencowe

· 16,000,000 new ordinary shares to be issued at 5p

· RAB Capital will hold 17,800,000 shares, being 10% of the enlarged share capital

· Blencowe to use funds to fast-track Pre-Feasibility Study (“PFS”) at Orom-Cross graphite project and ongoing exploration work at Akelikongo nickel project

Blencowe Resources is pleased to announce a placing of 16,000,000 new ordinary shares at 5 pence per share (“Placing Shares”) exclusively with specialist mining investor RAB Capital (“RAB”), to raise gross proceeds of £800,000. In addition, RAB will receive 1 warrant per 2 Placing Shares, exercisable at 8p for 3 years from admission. Therefore, 8 million investor warrants have been issued to RAB as part of this placing, which was arranged by Tavira Securities Limited.

Use of Proceeds

These proceeds will be used to enhance project development at both of the Company’s projects, namely Orom-Cross Graphite Project and Akelikongo Nickel Project.

Blencowe is targeting completion of the Orom-Cross Pre-Feasibility Study by mid-2022 and these funds will assist to drive towards that goal.  Furthermore, Blencowe will shortly be underway on initial exploration work at the Akelikongo Nickel Project, with a view to finding drill targets via airborne EM (electromagnetic) work.

Holdings

RAB currently holds 1,800,000 Blencowe shares and following admission of the placing shares it will hold 17,800,000 shares, being 10% of the enlarged share capital.

This Placing is deemed a related party transaction as defined under DTR 7.3. The independent director Sam Quinn considers the terms of the Placing as fair and reasonable insofar as the Company’s shareholders are concerned.

 

 

Admission

The Company has made an application for 16,000,000 ordinary shares to be admitted to trading on the official list and the London Stock Exchange with effect from 8.00 a.m. on 19 April 2022 (“Admission”).

In accordance with the FCA’s Disclosure Guidance and Transparency Rules, the Company confirms that following Admission, the Company’s enlarged issued ordinary share capital will comprise 177,929,950 Ordinary Shares. The Company does not hold any Ordinary Shares in Treasury.

Therefore, following Admission, the above figure may be used by shareholders in the Company as the denominator for the calculations to determine if they are required to notify their interest in, or a change to their interest in the Company, under the FCA’s Disclosure Guidance and Transparency Rules.

Chief Executive Officer of RAB Capital Philip Richards commented:

“I am pleased to have taken a long-term and strategic stake in Blencowe Resources. The priority Orom-Cross graphite project is clearly of significant quality and global scale already and it can play a material role in helping to meet the expected supply deficit forecast ahead for graphite. Whilst at an earlier stage in its development, the Akelikongo nickel sulphide project also appears to carry significant promise and I look forward to the results of the ongoing exploration campaign.”

Executive Chairman of Blencowe Cameron Pearce commented:

“I am delighted that resource specialist fund RAB Capital has elected to materially increase its shareholding in the Company at this time. This is a validation of the work we have undertaken over the last few years and the subsequent value we have created. RAB Capital have confirmed they share our belief in the robust economics and investment proposition of Orom-Cross, as well as the broader outlook for global graphite demand and the expected significant supply deficit.

 

 

For further information please contact:

 

  Blencowe Resources Plc

Mike Ralston

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 Securities

Jonathan Evans

Tel: +44 (0)20 7100 5100

jonathan.evans@tavirasecurities.com

First Equity Limited

Jason Robertson

Tel: +44(0)20 7330 1833

jasonrobertson@firstequitylimited.com

#BRES Blencowe Resources – Updated Presentation

Blencowe Resources is pleased to announce the release of an updated presentation for the Company, highlighting ongoing work at both the Orom-Cross graphite project as well as the Akelikongo nickel project.

The presentation can be found at this link: http://www.rns-pdf.londonstockexchange.com/rns/8784H_1-2022-4-10.pdf

CEO, Mike Ralston, will be delivering a live webinar at 12 noon Monday 11 April, where he will discuss this presentation along with the recently announced JORC Resource update, and the new strategic investment into Blencowe.

The link for this call is https://us02web.zoom.us/webinar/register/WN_PcAeugdNQs2oZksABsUD1A

 

For further information please contact:

 

  Blencowe Resources Plc

Mike Ralston

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 Securities

Jonathan Evans

Tel: +44 (0)20 7100 5100

jonathan.evans@tavirasecurities.com

First Equity Limited

Jason Robertson

Tel: +44(0)20 7330 1833

jasonrobertson@firstequitylimited.com

#BRES Blencowe Resources – Updated JORC Resource

Highlights

· 24.5Mt at 6.0% TGC contains sufficient Measured and Indicated Resource for the first 15 years life of mine

· 340% (9.4Mt) increase in Indicated and Measured Resources to 13.2Mt, giving a higher level of accuracy and confidence in the deposits to be mined

· Grade remains consistent over the extended zones drilled at both deposits

· High-grade zones evident within the Northern Syncline, including 3.4Mt @ 8.4% TGC

· The Mineral Resource now circa three times larger than initial 8-10Mt targets for the Northern Syncline deposit.

· Drilling at Camp Lode delivers consistent outstanding high grade graphite results in the oxide zone including:

o  OREA-L1302, 11 metres at 9.73%TGC from 3 metres including 6 metres at 10.97% TGC

o  OREA-L1401, 5 metres at 10.30% TGC from surface

o  OREA-L1501, 14 metres at 11.81% TGC from 4 metres

o  OREA-L701, 19 metres at 9.78%TGC from 2 metres

o  OREA-L1201, 17 metres at 10.35% TGC from 2 metres including 7m @12.21% TGC

o  OREA-L401, 19 metres at 9.49% TGC from surface

· 100% conversion of potential mineralisation from the weathered zones in the Camp Lode into JORC Standard Indicated Resource.

· Further 4.2Mt potential resource available at Camp Lode with additional drilling.

Blencowe Resources (Blencowe or the Company) is pleased to report that results for its revised JORC Standard Resource estimation for the Orom-Cross Graphite Project located in northern Uganda have substantially exceeded expectations.

A comprehensive infill drilling programme (Phase 6) was completed in 2H 2021 and the results have significantly increased the previously reported Mineral Resource to a position where sufficient ore tonnes required for the first 15 years life of mine are now available within the Indicated and/or Measured category. The modelling has also confirmed the robustness of the two higher grade zones within the main Northern Syncline deposit which surround a zone of medium grade graphite.  The Measured, Indicated and Inferred Resources commence from surface outcrop to depth of current drilling at 30m, and the ore body remains open below this which represents considerable future potential tonnes into the future.

These results, which come from the weathered, close-to or at-surface zone of the deposit, highlight the quality of the Project’s mineralisation and its ability to be a low-cost producer. The nature of the ore body will enhance the commercial outcome for the early years of operations at Orom-Cross by mining this higher-grade ore.

Blencowe had initially targeted a Mineral Resource of 20Mt from Phase 6, with 10Mt in the Measured and/or Indicated categories, in order to provide the start-up ore for a 25Kt per annum operation with potential for expansion subsequent to commencement of production. The 24.5Mt overall, with 13.2Mt as Measured and/or Indicated Resources has outperformed this expectation.  The Company is happy with the initial assessment of Resources located in an area specifically targeted as close to the potential plant site within an extensive mineral field.

Furthermore, Blencowe is also looking at all options to deliver green graphite products via a Project that will utilise renewable energy and other sustainable components.  This is seen as a very important objective within the Pre-Feasibility Study (“PFS”) and the strategy moving beyond.

All other areas within the PFS are going to plan, with work underway on all key areas including infrastructure, energy, roads, water, tailings, logistics, sales and marketing, plus plant and camp design.  Completion is targeted for mid-2022.

Executive Chairman Cameron Pearce commented;

“Our Phase 6 exploration results have added considerable further value to the Orom-Cross Graphite Project as all of the Key Performance Indicators for this latest drilling programme were either met or exceeded. 

We have now included the higher-grade Camp Lode deposit into the overall JORC Resource for the first time; we significantly increased the overall JORC Resource tonnage by 50%; we re-classified a full 13.2Mt into the higher confidence Indicated and Measured categories, and we maintained our in situ grade throughout.”

As a result of this programme we now have enough tonnes ready to mine that will cover our first fifteen years life of mine, which is an exceptional position for Orom-Cross as we head towards delivering our Pre-Feasibility Study by mid-year, and thereafter our first sale of graphite concentrates from a pilot plant from 2023 onwards.  Full production from the main plant is targeted from 2025.”

 

Mineralisation Zones

The Orom-Cross Graphite Project is located in the Kitgum District in north-eastern Uganda. Previous exploration activity identified and named at least five major graphite mineralised zones within the Project property which are underpinned by 21-year Mining Licence (ML) already awarded, namely:

o  Northern Syncline

o  Camp-Lode

o  Central Anticline

o  Synformal Saddle

o  Southern Anomaly

The Phase 6 Resource Delineation Programme (2021) targeted:

1.  Confirming and upgrading the resources in the Camp Lode to include within the JORC Resource.

2.  Upgrading the resource classifications in the Northern Syncline and;

3.  Completing the investigation of the near surface, free dig graphite mineralised material within a portion of the overall Northern Syncline Lode and the Camp-Lode mineralised zones.

The Phase 6 drilling was based upon each mineralised zone being divided into four sub-zones based on the subsurface level of oxidation and weathering. Field observations, phase 5 drilling and the phase 6 drilling results confirmed the initial analysis suggesting a mean global weathering depth of ~15m (with a range of ~9m to ~25m in some instances) and a transition zone approximately 6 to 10m in depth. 

The Graphitic Carbon grade population within the investigated mineralised zones indicates that thegraphitegrade for the deposit ranges from 0.01% to 24.1% GC with a mean grade of 5.6% GC and a mode of 6.0% GC.

The JORC compliant resource estimate for these two graphite mineralised areas has been completed and is based on the drill hole spacing, grade variability and geological confidence. The resultant of the modelling and estimation process is the declaration of Mineral Resources as noted.

 

Resource Estimates

Blencowe undertook an additional drill program (Phase 6) in August 2021 which consisted of an additional 38 holes into the Northern Syncline for 1,140 metres and 36 additional holes into the Camp Lode for 1,080 metres. Geostatistical analysis of the data allowed for both the Camp Lode and Northern Syncline to be estimated and reported according to the JORC code. 

A Resource block model was constructed for both which was dependant on the data spacing and a final block size of 10m x 20m x 3m was selected with a rotated grid to match the orientation of the graphite mineralisation zones. An Ordinary Kriged estimation was performed and resulted in the reporting of Inferred, Indicated and Measured Resources for the Camp Lode and Northern Syncline. The Resources for the Northern Syncline have been tabulated at various cut-off grades starting at 3% GC through to 10% GC.

The previous drilling at the Camp Lode was focussed on delineation of the lode and to check the presence, depth and general shape of the deposit. The majority of the Phase 5 drilling was in the central areas of the Camp Lode in a line which passed through a good patch of mineralisation but since it was the only information available at that stage it introduced a high bias on the mean grades in the reporting of the mineralisation.

With the infill drilling Blencowe defined the high-grade zone and surrounds and in so doing applied better definition on both tonnes and grade and removed the high-grade zone basis.

Table 1: Phase 6 – Revised (2022) JORC Standard Mineral Resources, Orom-Cross Project

Mineral Resources – 2022 Block Model

Area

Material

Resource Category

Cut-off Grade

Tonnage (t)

SG

%GC

%TC

Contained Graphite (Kt)

% of Resource

Northern Syncline

Weathered

Inferred

3.5% GC

2,363,000

2.33

5.60

5.75

132

36%

Indicated

3.5% GC

4,269,000

2.32

5.70

5.90

243

64%

Measured

Not Reported

0

0%

Subtotal

3.5% GC

6,632,000

2.32

5.66

5.85

376

100%

Fresh

Inferred

3.5% GC

8,269,000

2.67

5.61

5.80

464

54%

Indicated

3.5% GC

5,982,000

2.70

5.60

5.80

335

39%

Measured

3.5% GC

1,043,000

2.71

5.50

5.70

57

7%

Subtotal

3.5% GC

15,294,000

2.69

5.60

5.79

856

100%

Camp Lode

Weathered

Inferred

3.5% GC

632,000

2.38

7.00

7.50

44

25%

Indicated

3.5% GC

1,903,000

2.25

6.90

7.40

131

75%

Measured

Not Reported

0%

Subtotal

3.5% GC

2,535,000

2.28

6.92

7.42

175

100%

Fresh

Inferred

No Resources Reported – See Potential Mineralisation

Indicated

Measured

Subtotal

0%

TOTALS

Inferred

3.5% GC

11,264,000

2.59

5.69

5.88

640

46%

Indicated

3.5% GC

12,154,000

2.50

5.84

6.08

709

50%

Measured

3.5% GC

1,043,000

2.71

5.50

5.70

57

4%

Inferred, Indicated & Measured

 

3.5% GC

24,461,000

2.55

5.75

6.00

1,407

100%

Total (Weathered)

Inf. + Ind.

3.5% GC

9,167,000

2.31

6.01

6.28

551

37%

· GC – Graphitic carbon, TC – Total carbon. 

· No geological loses applied.

· A conservative cut-off grade of 3.5% GC has been applied based on metallurgical testing & preliminary mining parameters.

· Mineralised tonnes have been rounded off and contained graphite metal tonnages have been rounded off to the nearest 1000 (Kt).

· Contained graphite has been reported without the application of cut-off grades, loss factors, or beneficiation yields.  

Potential (Additional) Mineralisation

The Phase 6 drill program was focused on a clearer delineation of the resources and an upgrade of resource classification. To this end the program was successful in being able to fully upgrade the previously reported Northern Syncline potential mineralisation of 6,995,000t, in the weathered zone into JORC 2012 reportable Resources.

The program was also successful in upgrading the full weathered potential mineralisation in the Camp Lode into reportable Resources. As the focus in the Camp Lode area was at understanding the geological complexity of the deposit and defining the graphitic carbon units this meant that the majority of drilling was in the weathered zones. A potential further mineralisation of some 4.2Mt higher grade graphite in the Camp Lode remains to be added ahead, which the Company will consider converting into JORC Standard Resource as part of the DFS works. The better understanding built from the 100% conversion of the weathered material is expected to also result in the full conversion of this remaining 4.2Mt.

Therefore, the Potential Mineralisation for both areas can be summarised as follows:

Potential Mineralisation – Grade Tonnage Curves

Area

Material

Avg. depth

investigated

Cut-off

Grade

Tonnage (t)

Mt

Mean

SG

Mean

%GC

Mean

%TC

 

Northern Syncline

Weathered

0 – 13m

Insitu

13 – 36 m

Not reported as potential mineralisation – see Mineral Resources

Subtotal

 

Camp Lode

Weathered

0 – 17m

Insitu

17 – 40m

4 220 000

4.2

2.35

8.35

8.67

Subtotal

4 220 000

4.2

2.35

8.35

8.67

 

Total

4,220,000

4.2

2.35

8.35

8.67

GC – Graphitic carbon, TC – Total carbon

** Mineralised tonnes have been rounded off

Competent Person’s Statement

The information in this release, which is related to Mineral Resource estimation, was compiled under the supervision of Mr JP van den Berg who is an employee of Minrom Consulting (Pty) Ltd; he is Member of the Geological Society of South Africa (GSSA) and a Certified Professional Natural Scientist (Pr.Sci.Nat) with the South African Council for Natural Scientific Professions (SACNASP). 

Mr Van den Berg has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity that he has undertakento qualify as a Competent Person as defined by the JORC (2012) Code. Mr Van den Berg consents to the inclusion in this report of the matters based on his information in the form and context in which it appears

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 Securities

Jonathan Evans

Tel: +44 (0)20 7100 5100

jonathan.evans@tavirasecurities.com

First Equity Limited

Jason Robertson

Tel: +44(0)20 7330 1833

jasonrobertson@firstequitylimited.com

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