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#BRES Blencowe Resources – Appointment of Battery Limits

Blencowe Resources Plc (” Blencowe” or the “Company”) (LSE: BRES) is pleased to announce the appointment of highly regarded Australian Engineering firm Battery Limits to assist the Company in the completion of the Orom-Cross Graphite Project Pre-Feasibility Study.

Highlights

· Battery Limits is a highly experienced graphite project development engineering firm.

· Battery Limits has completed Feasibility Studies for several tier one graphite projects internationally.

· Extensive graphite project experience in East Africa.

Battery Limits is one of the most experienced graphite project development engineers internationally, with extensive experience in East African graphite projects. Battery Limits has been selected to assist the Company on the basis of this relevant project experience which includes:

· Armadale Capital – Lindau Mahenge Tanzania Graphite feasibility study

· MRC – Munglinup Graphite Australia DFS

· International Graphite – downstream processing DFS

· Graphex Chilalo Graphite – PFS update, PFS and scoping studies and DFS metallurgy and process engineering

· Volt Resources – Bunyu Graphite Tanzania FS, PFS, scoping studies

· Armadale Capital – Lindau Mahenge Tanzania Graphite scoping study

· BlackEarth Minerals – Maniry Graphite Madagascar scoping study

· Black Rock Mining – Mahenge Graphite Tanzania PFS

· Magnis Resources – Nachu Graphite Tanzania PFS

· Triton Mineral – Ancuabe Graphite Mozambique scoping study  

 

Blencowe considers this previous project experience, and in particular the East African graphite knowledge, highly beneficial to Battery Limits assisting in the development of Orom-Cross project.

Battery Limits will lead the Pre-Feasibility Study and will ultimately sign off on the Study, thus providing key credibility to all parties concerned. Study aspects of process engineering and process plant design, capital and operating cost estimates, management of ongoing metallurgical testwork, infrastructure and project implementation will all be undertaken by Battery Limits.

Specialised sub-consultants in Uganda and South Africa will be assisting with tailings storage design, geotechnical and hydrological studies under supervision of Battery Limits.

Executive Chairman Cameron Pearce commented:

“We are both pleased and privileged to have a technical partner with the capabilities and experience of Battery Limits helping us to deliver the PFS, due for completion around mid-2022.  Our Orom-Cross graphite project continues to move towards first production in the medium term and their involvement will help provide a stronger operational and commercial model.”

 

 

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

First Equity Limited

Jason Robertson

Tel: +44(0)20 7330 1833

jasonrobertson@firstequitylimited.com

#BRES Blencowe Resources – Graphite Sales and Marketing Expert Appointed

Lone Star Tech Minerals has 25 years direct experience in sales and marketing of all graphite and carbon products as well as expertise for various industrial mineral applications

Highlights :

· Appointment of World Leading Graphite expert

· Robust PEA numbers delivered in October

· PFS now fully funded

Blencowe Resources (LSE: BRES.L) (“Blencowe” or the “Company”) is pleased to announce its engagement with a leading graphite industry specialist, Lone Star Tech Minerals – USA (“Lone Star”), effective immediately.  Lone Star is based in the United States and will assist Blencowe with all parts of its sales and marketing strategy, including analysis of concentrates, technical specifications, review of the broader graphite market, identification of products and opportunities, and assisting in building key relationships with end users that can ultimately lead to key product qualifications and sale of product once mining operations commence.

 

Lone Star is headed by Christopher Whiteley, acknowledged as one of the leading graphite sales and marketing specialists in this industry.  Mr Whiteley has over 25 years of sales and technical graphite and carbon products experience, which Blencowe will draw on as it continues to develop its Orom-Cross Graphite Project in Uganda.  He has held senior positions in a number of industry leading companies in the graphite market and has successfully implemented global marketing and sales initiatives for a wide range of graphite applications including traditional and advanced graphite product end uses.

 

Blencowe is currently building its sales and marketing strategy for Orom-Cross and will draw upon all of Lone Star’s experience as well as its strategic relationships in the industry.  Graphite is a unique product in terms of sale as it has over 150 applications for different uses in various end products, and understanding all of these applications as well as the best mix of end products to produce is critical to the success of the project.  Sales are also made directly into end users, as opposed to selling into a London metals market or similar for other metals, and having the means to tap into end-user relationships via an experienced partner is important.

 

The Company delivered a strong Preliminary Economic Assessment (PEA) for Orom-Cross in October 2021 and has recently announced a successful, over-subscribed £2 million capital raise, which will fund its Pre-Feasibility Study (PFS) that has already commenced and will be due for completion around middle of 2022.  The Sales and Marketing Strategy will form an integral part of the PFS.

 

Cameron Pearce, Executive Chairman commented:

 

“We are extremely fortunate to have a project of the calibre of Orom-Cross, which has the quality and characteristics to attract a partner such as Lone Star, to assist us ahead. Lone Star has already identified that Orom-Cross has a unique blend of traditional graphite products that will likely sit well within the broader graphite market and we will now work closely together to build and then implement the strategy to ensure that we can successfully sell these products into that market.

 

Graphite is a non-replaceable, key component of the lithium-ion batteries that provide the energy to power electric vehicles (EVs), and as EV growth continues to expand exponentially over the next decade demand for graphite is forecast to increase fast in parallel.  In addition Orom-Cross has a good percentage of jumbo and large flake graphite that sell for considerable higher prices into speciality markets, thus providing a valuable mix of end products to achieve higher overall margins.”

 

 

 

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

Brandon Hill Capital Limited

Jonathan Evans

Tel: +44 (0)20 3463 5000

jonathan.evans@brandonhillcapital.com

First Equity Limited

Jason Robertson

Tel: +44(0)20 7330 1833

jasonrobertson@firstequitylimited.com

Blencowe Resources #BRES – Orom-Cross PEA Shows Potential for Long Life, Highly Profitable Graphite Project

Results of internal Preliminary Economic Assessment (“PEA”) demonstrate compelling case for the development of a major new graphite project, paving the way for a Pre-Feasibility Study.

Highlights 

Low operating costs and robust financials for mining operation:

· Net Present Value (NPV 8 ) of US$317M / IRR 49% over 13-year life of mine from 2025.

· Average nameplate production of 75,000tpa graphite sold as concentrate, with ability to extend this after further drilling.

· Life of mine C1 operating cost of US$498/t (CIF Mombasa port) which would make Orom-Cross one of the lower cost graphite projects worldwide.

· An initial capital cost of US$80M, inclusive of 15% contingency.

· Orom-Cross will generate an average US$40M pa in EBITDA over life of mine at a weighted average price of US$1,050/t for the full basket of all end-products sold from 2025 onwards.

· Cumulative post-tax net cash flow of US$351M generated over initial 13 years life of mine.

· 4-year payback on capital.

Next Steps:

· Work will now begin on Pre-Feasibility Study (PFS) using an independent consultant, including an upgraded JORC Standard Resource statement.

· Sales and marketing analysis to source potential off-take partners to commence immediately.

Attractive size and scale of deposit with high quality end-product:

· Estimated 2-3 billion tonnes flake graphite deposit at Orom-Cross, with 16.3Mt already drilled to JORC Resource standard, covering initial life of mine.

· High grade 97-98% TGC (Total Graphite Content) concentrate proven, with low impurities, high recoveries and strong mix of jumbo/large flakes within overall end-product.

Low risk operation:

· Shallow, free dig open pit mining operation with low strip ratio.

· Well established, proven plant design and process to deliver high grade concentrates.

· Key infrastructure (roads, electricity, water) all available at mine site.

· Stable jurisdiction to develop a long-term mining venture.

· 21 year mining licence granted in 2019

Cameron Pearce, Executive Chairman commented;

“We are pleased to announce the first full economic evaluation of the Orom-Cross graphite project based on prudent assumptions. The current internal PEA underpins our view that we have a robust Project that we will now advance to the next stage of development. We are confident that the Project economics can improve further, notably by extending the life of mine and/or increasing the levels of production.

The Project has several key attributes that underpin the decision to move forward with its development including the ability to upscale production volumes and/or extend the life of mine; high quality output via purity of end concentrates and a mix of different flakes sizes which delivers an excellent weighted average selling price for the entire basket; plus a low operating cost helped considerably by shallow free-dig mining and processing that does not require excessive crushing and grinding.

The Project will provide a range of high quality end-products that will be sold into what is generally forecast by most leading analysts as a rapidly growing demand for flake graphite ahead, particularly driven by electric vehicle expansion. 

All of these factors combine to deliver a standout PEA result that we believe confirms Orom-Cross as one of the premium graphite projects available worldwide, delivered from one of the safest locations for a long-term mining venture in Africa.

We still have further work ahead to deliver Orom-Cross into first production but we are making considerable progress.  The next step is the revised and upgraded JORC Standard Resource by end-2021 which will then underpin our Pre-Feasibility Study in 1H 2022, where we revisit all of these Project inputs within the model to build further layers of confidence everywhere.” 

Blencowe Resources (LSE:BRES ) is pleased to announce the results of its Preliminary Economic Assessment (PEA) for the Orom-Cross graphite project located in Uganda.  This PEA highlights the potential to deliver a long-life mining operation with strong financial returns.

The PEA indicates that Orom-Cross production is economic at forecast graphite prices and it supports Blencowe’s view that the Project is one of the best undeveloped graphite projects worldwide.

The PEA was compiled and completed internally by Blencowe’s management team using information and data largely provided by third party experts, including the JORC Standard Resource statement, metallurgical test studies, processing and plant design, operating costs (including logistics), product pricing and sales and marketing forecast information.  This PEA is an internal document which has not been reviewed or approved by a third party technical firm as that will be done within the Pre-Feasibility Study, which is the next stage in the development of this Project.

Cautionary Statement:

The PEA is a preliminary assessment based on lower accuracy technical and economic assessments (25-35% range), undertaken internally by Blencowe management to consider the full mining operation and to determine the financial viability of the Project prior to the PFS.  The PEA is insufficient to support the estimation of ore reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the PEA will be realised.  Further work will be undertaken ahead to build the confidence in this model and provide additional reassurance in the outcomes.

The information in the PEA and this RNS that relates to metallurgical testwork and capital costing is based on information compiled and reviewed by Mr David Pass, who is a member of the Australian Institute of Mining and Metallurgy. Mr Pass is an employee of Battery Limits Pty Ltd. Mr Pass has sufficient experience relevant to the mineralogy and type of deposit under consideration and the typical beneficiation thereof to qualify as a Competent Person a defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 Edition). The information in the PEA and this RNS that relates to Mine Reserves, capital and operating costing is based on information compiled and reviewed by Mr Iain Wearing, who is a member of the Australian Institute of Mining and Metallurgy. Mr Wearing is an employee of Blencowe. Mr Wearing has sufficient experience relevant to the mineralogy and type of deposit under consideration and the typical operation thereof to qualify as a Competent Person a defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 Edition). Both Mr Wearing and Mr Pass consent to the inclusion in the PEA and this RNS of the matters based on the reviewed information in the form and context in which it appears.

This RNS includes statements that are, or may be deemed to be, “forward-looking statements”. Such statements appear in a number of places and include statements regarding the intentions, beliefs or current expectations of the Company and the Board concerning, among other things, results of operations, financial condition, capital resources, prospects, capital appreciation of the shares of the Company.  By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward- looking statements are not guarantees of future performances. The Company’s actual performance, results of operations, financial condition, distributions to Shareholders and the development of its financing strategies may differ materially from the forward-looking statements.

 

Key Performance Indicators (KPIs)

The following KPI’s illustrate the graphite mining operation considered at Orom-Cross:

KPI

Result

Life of Mine (LOM)

Initial 13 years

Further years will be added following additional resource drilling

Average Annual Production

75,000tpa

End-product as concentrate, split into four separate mesh sizes for sales

65% sold into battery metals market

Recovery Rate (end-product)

90%

Composite product – per metallurgical test work

Capital Cost, including 15% contingency

US$80M

Plant, all infrastructure, vehicles and camp

C1 Cash Operating Cost

US$498/t

CIF Mombasa (end-products as concentrate)

Weighted Average Selling Price

US$1,050/t

Using 2025 forecast pricing – overall for all four end-products as assumed sold

EBITDA

US$40M pa

Average pre-tax earnings over life of mine

Cumulative Free Cash

US$351M

Generated over first 13 years life of mine, after repayment of all debt

Net Present Value

US$317M

Pre-tax (8%) , inclusive of Government royalty

IRR

49%

Pre-tax (8%) , inclusive of Government royalty

Payback period on capital invested

4 years

Assumes upfront capital raised as debt: equity Split 60% : 40% respectively

 

 

Orom-Cross Graphite Project

Orom-Cross is a substantial graphite project located in northern Uganda, 100%-owned by Blencowe Resources since April 2020, with a 21-year Mining License awarded in 2019.

Mining & Processing

The Preliminary Economic Assessment conducted by Blencowe management assumes an open pit, owner-operated mining operation using existing resources (Indicated and Inferred) as drilled to JORC Resource Standard, delivering 1.4Mtpa ore on average for processing through the plant.  Strip ratio is 1: 1.1 which is low.  Plant recoveries are considered at 90% based upon the composite material most likely to be fed into the plant, as derived from metallurgical test work conducted by graphite expert SGS in Toronto.  Initial life of mine as contemplated within the PEA is just 13 years (18Mt total throughput into plant) but this will almost certainly be extended as Blencowe has only drilled a small percentage of the total graphite available, and further drilling in subsequent years will provide additional JORC Resources when considered necessary.

The plant will be located near to the first two major deposits of graphite to be mined and t he 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 followed by cleaner flotation.

The plant will feature separate circuits that ultimately deliver an average of 75,000tpa, made up from four separate end-products, being jumbo, large, medium and small flakes size concentrates.

The split of mesh sizes / respective tonnages within each of the four end-products is illustrated below:

End Product

(Flake size)

Mesh Size

Purity

% TGC

% of End Product

Tonnes pa

End Product

1

Super Jumbo/Jumbo

+32

+48

98.1%

98.0%

13.7%

10,275

2

X-Large/Large

+80

97.7%

22.5%

16,875

3

Medium

+100

+150

97.5%

97.0%

24.7%

18,525

4

Small

+200

+325

-325

96.9%

96.6%

95.7%

39.2%

29,400

Total

75,000

 

Manpower and Management

Orom-Cross will be owner-operated and managed by a workforce comprising of both national and expatriate personnel.  Wherever possible locals will be employed, but the quality and experience of senior executives will not be compromised as necessary to ensure that all objectives are delivered.

A work force of ~45 will be on-site at any one time, some of whom will be fly-in, fly-out from international locations.

Logistics

End-product as concentrate will be bagged at site and loaded into containers for bulk transport by road through Uganda and Kenya, to Mombasa port, and thereafter shipped to final destination(s).  Orom-Cross benefits from substantial container freight entering landlocked Uganda and South Sudan by road transport that currently returns under-utilised (imports exceed exports) and as such Blencowe may receive more favourable terms on backfill transport to port.

It is possible that the standard gauge rail line currently under construction between Mombasa and Kampala (via Nairobi) will be completed by anticipated 2025 Orom-Cross start-up date, but the PEA has not considered this rail option; for now only road transport has been included.  Presently this new rail line is around 60% completed.

When this rail option is completed it may potentially reduce logistical costs further, which are currently ~18% of the total operating cost for the end-product as delivered to port (CIF Mombasa).

Sales and Marketing

Sales and marketing are at a preliminary stage within Orom-Cross development as specific end-product specifications have only recently been formalised through metallurgical test studies.  Blencowe has identified several experienced sales and marketing consultants worldwide and has engaged with each to identify the most likely channels to locate potential offtake partners. Once end users are identified the Company will engage with each to assess their interest in Orom-Cross offtake.

Product pricing has been evaluated using advice and reports generated by industry accepted graphite experts including Benchmark Minerals Intelligence (BMI) and UBS, taking into consideration potential premiums that may be achieved for higher grade concentrates that Orom-Cross can deliver and future pricing as forecast from 2025 onwards.  Graphite pricing is largely opaque so forecast prices should be considered with some caution and Blencowe has chosen to adopt a conservative view on what prices may be achieved, to ensure reliability and credibility.

It is assumed for the PEA that 100% of the end-product that will produced at Orom-Cross will be sold, although there are no off-take agreements currently in place with Blencowe that can confirm this.  As the majority of end-product sold from the Project will be in the category that is required for the battery metals market (for use within the anode inside lithium-ion batteries), and as most leading analysts forecast that demand will outstrip supply in this category by the 2025, the anticipated Orom-Cross start date, it is assumed within this PEA that all end-product produced will be sold.

Infrastructure

There are existing roads all the way from the Orom-Cross site through Uganda/Kenya to Mombasa port.  The only section that is not currently a bituminised road is the final 90kms from Kitgum to Orom. Blencowe is currently in discussions with the relevant Ugandan Government departments to assist the Orom-Cross development by upgrading and bituminising this section of road.  Currently hydro-generated electricity comes into Orom village approximately 4kms from the proposed mine site so the Project will connect into the grid (with other redundancy power options as backup), and abundant fresh water is freely available in the area.

All key infrastructure is therefore either in place or readily available which makes a significant difference in cost savings to forecast capital expenditure to bring Orom-Cross into production.

Operating Estimate

Blencowe management has built the PEA model based on these above assumptions, with an expected life of mine operating cost (C1) of US$498/t (CIF Mombasa port).

Ongoing capital required to maintain the Project has been included as well as a 5% royalty to Government of Uganda.  A further amount has also been included for community welfare projects as Blencowe takes its ESG (environmental, social & governance) responsibilities seriously.

Operating Item

US$ / tonne

% Total

Mining

103/t

20.7%

Processing

181/t

36.3%

Transport and logistics

92/t

18.5%

Corporate, admin & personnel (includes ESG)

65/t

13.1%

Sales commissions

10/t

2.0%

Royalties

47/t

9.4%

Total Cost (C1)

US$498/t

100%

Capital Expenditure

The design and capital requirement for the plant has been derived from external technical firm Battery Limits / Mining Metals Technology Limited, a company with considerable graphite plant design experience.  A suitable contingency has been applied to ensure adequate provision for a plant that can deliver ~1Mtpa throughput.

Further capital has been considered for all associated infrastructure required, including the following non-process infrastructure that will be constructed to support operations:

· Power sub-station and power distribution

· Raw water supply and water treatment

· Accommodation village

· Airstrip

· Offices, stores, and workshops

· Communications

· Bulk fuel storage

· Secondary roads (on-site)

A sustaining capital is included within the operating cost to ensure necessary maintenance and refurbishment of items where necessary.  Capital costs are estimated to an accuracy of 25-35%.

A breakdown of the key capital cost items is shown below:

Capital Item

Cost

(us$ Millions)

Processing Plant/tailings

52

Site construction/EPCM

15

Vehicles & equipment

2

Camp & offices

5

Additional Resource Drilling

2

Mobilisation/demob & first fill

3

Community

1

TOTAL

US$80M

 

Note: 15% Contingency included in all items shown above

Project Economics

Financial analysis on Orom-Cross has been undertaken using a discount cash flow model with various sensitivities, and an 8% discount value has been used for this analysis which is consistent with current resource model forecasting and future anticipated rates pertaining to cost of capital.

It is assumed within the PEA that all upfront capital is raised from both equity and debt (35%: 65%).

A project Net Present Value of US$317M highlights the considerable value within the initial 13-year Orom-Cross Project and the IRR of 49% illustrates the attractive return on capital invested.  Payback on all capital employed is four years which is exceptional as the Orom-Cross Project is ultimately expected to run for a considerable period beyond this initial 13-year life of mine as considered.

US$40M pa EBITDA is returned on average over life of mine, with overall cumulative free cash of US$351M returned over the Project life of mine. 

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

Brandon Hill Capital Limited

Jonathan Evans

Tel: +44 (0)20 3463 5000

jonathan.evans@brandonhillcapital.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 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 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 16.3Mt @ 6.0% Total Graphite Content. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.

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END

#BRES Blencowe Resources Plc – Update on Orom-Cross Graphite Project

Blencowe is pleased to deliver an update to the market in regards to work streams progressing on the Company’s flagship Orom-Cross graphite project in Uganda.

Highlights

  • Phase Two drilling program was completed in early August; all samples have been prepped and are in transit to laboratories in Australia for assaying.
  • Blencowe continues to target a revised, upgraded JORC Standard Resource statement in Q4 2021.
  • Preliminary Economic Assessment (“PEA”) for the initial proposed mining operation at Orom-Cross is considerably advanced and should be completed before 30 September 2021 with public release shortly thereafter.
  • Forthcoming PEA to be first full commercial model for entire project and will indicate how valuable the Orom-Cross project is on a global scale.

The Orom-Cross project is now developing into an outstanding graphite project based on the recent project milestones achieved and other factors including:

  • Significant size and scale of the overall deposit will allow substantial future uplifts to production levels to meet anticipated surges in graphite demand;
  • Highest quality 97-98% concentrate verified by leading independent metallurgical test expert, SGS Lakefield in Canada;
  • Low risk location to develop a long-term mining operation, with stable Government in Uganda supportive of the mining industry;
  • Strong community support;
  • Advanced project, with 21-year Mining License already awarded; and
  • Opportunity to develop Orom-Cross into a battery metals market that is forecast to grow considerably over next decade, as lithium-ion batteries become highly sought after to power exponential growth in electric vehicles (EVs). Graphite is a key component of the lithium-ion battery.

Cameron Pearce, Executive Chairman commented:

“The Company has made considerable progress over the past sixteen months since Orom-Cross was acquired and is now about to deliver a first economic model to share with the market. 

We are confident that the PEA will underline the value that has been built to date and outline further upside that Orom-Cross can become a globally significant graphite project due to its scale and mineralogy.

The PEA will also begin the process of allowing investors to assess the project in the context of it’s global peer group and provide a robust framework for us to progress strategic discussions already initiated with a range of parties such as potential offtake agreements and strategic partnerships.  We also look forward to delivering our revised JORC Resource Statement in the fourth quarter of this year.

Following delivery of the PEA we will then seek to progress to a pre-feasibility study (“PFS”) to ensure that we further de-risk the investment decision as we drive towards first production.”

Background to PEA

The completion of the PEA by the end of month comes as a result of a range of key achievements Blencowe has delivered on to date, both in terms of timing and budget, and most specifically the initial JORC Standard Resource statement, the second drilling campaign to further delineate a greater part of these resources to a lower risk category (Indicated and Measured status) and the exceptional metallurgical test results announced in the middle of the year.

The PEA has been built up internally by Blencowe’s management team who have significant experience in this regard, with a stated purpose to be accurate but conservative. However all key numbers within the PEA have been generated via the involvement of third party technical experts to ensure credibility and integrity.

The next step beyond PEA will be for the PFS to commence, which will ultimately be signed off by a third party technical firm.  As part of the PFS Blencowe will be opening dialogue with potential offtake partners on quantity, quality and pricing of end products as available for sale.

 

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

 

Brandon Hill Capital Limited

Jonathan Evans

Tel: +44 (0)20 3463 5000

jonathan.evans@brandonhillcapital.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 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 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 16.3Mt @ 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 – Orom-Cross Graphite Project – Drilling Progressing to Plan

Highlights

  • Stage Two drilling programme over halfway completed and ahead of schedule
  • Expected to define a +10Mt TGC Measured and Indicated Resource with increased tonnage and grades expected from the high-grade Northern Syncline and Camp Lode zones

Blencowe Resources Plc (“Blencowe Resources” or the “Company”) (LSE: BRES) is pleased to announce that the Stage Two drilling program that commenced in June is over halfway through, with full completion and demobilisation expected before end-July.

To date 41 holes out of 74, for circa 1,200m of overall 2,000m diamond drilling, have been completed and the first batch of 554 samples has left site for to Mwanza in northern Tanzania where the regional JORC-accredited laboratory is located.

Most of the current drilling program has taken place at the higher grade Camp Lode deposit, which required further drilling in order to bring it into the JORC Standard Resource.  To date 29 holes of planned 36 are completed at Camp Lode and Blencowe Resources is happy to report that the continuity of both grade and geology is strong within the Camp Lode.  This bodes well for a JORC Resource upgrade once all the drilling and assaying is completed.

Blencowe Resources has also undertaken further drilling at the nearby Northern Syncline deposit where 12 of the planned 38 holes are completed.  Grade and continuity are also maintaining and a resource upgrade will be likely there too.

The Company designed this Stage Two in-fill drilling program primarily to upgrade a significant portion of the 16Mt Inferred Resource as announced previously into an Indicated or Measured category, which can then be used for mine planning and design within the Pre-Feasibility Study.  Two further benefits will be firstly to add more tonnes into the overall JORC Resource and secondly to raise the overall grade of the JORC Resource by bringing in the Camp Lode deposit for the first time.

Cameron Pearce, Executive Chairman commented;

“Blencowe is making excellent progress everywhere and the continued good work in the field by our technical partners within Uganda will allow us to upgrade our JORC Resource for Orom-Cross in Q4 2021.  This drill program is being done in parallel with metallurgical test work to determine our optimal end product, the results of which are due shortly from SGS in Canada, and together they will provide the Company with the foundation upon which it can shortly commence its first commercial studies of the project.

Our team has delivered considerable value uplift on Orom-Cross in just fifteen months since we acquired the project and in the next few months we believe we will add considerably more value as the Stage Two drilling and metallurgical test work programs complete. 

Orom-Cross is shaping up to be an outstanding graphite project and we will continue to develop it in all facets towards first production, while momentum gathers all the time for our end-product, being one of the critical input materials into lithium-ion batteries used to power electric vehicles.”

For further information please contact:

Blencowe Resources Plc

Sam Quinn

 

 

Investor Relations

Sasha Sethi

 

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

 

Tel: +44 (0)7891  677 441

sasha@flowscomm.com

 

Brandon Hill Capital Limited

Jonathan Evans

Tel: +44 (0)20 3463 5000

jonathan.evans@brandonhillcapital.com

 

 First Equity Limited                                                   Tel: +44(0)20 7330 1883

Jason Robertson                                                        jasonrobertson@firstequitylimited.com

 

Twitter https://twitter.com/BlencoweRes

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

Background

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 studies phase shortly as it drives towards first production.

Orom-Cross presents as a large, shallow open pitable deposit, with an estimated overall resource between 2-3 billion tonnes of graphite. 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 – Metallurgical Test Work delivering Positive Results for Blencowe’s Orom-Cross Project

Blencowe Resources Plc (“Blencowe Resources”) (LSE: BRES) is pleased to announce that metallurgical test work currently underway at graphite specialist SGS Lakefield (Toronto) is going
according to plan and results to date confirm the exceptional nature of the end product quality. This is considered critical to the overall Project as a high quality end product provides the basis for more significant offtake interest as well as overall better pricing in the market.
Highlights:
  • Preliminary tests within stage two at SGS Lakefield have confirmed the potential to achieve a concentrate grade between 95-96% TGC with low impurities and high recoveries, from both the Northern Syncline and Camp lodes
  • Further test work will commence on the quality of a sphericalised product from the smaller fines – a product in high demand in the EV sector
Test work to date previously completed during in stage one last year delivered a 94% TGC concentrate with modest recoveries, but in preliminary tests within stage two at SGS Lakefield have confirmed the potential to achieve a concentrate grade between 95-96% TGC with low impurities and high recoveries, from both the Northern Syncline and Camp lodes.
Additionally, the higher grade and recoveries have not impacted the recovery of the large to jumbo flakes and a revised approach to the processing methodology has enabled these higher value larger flake sizes to be mostly preserved in the upgrading. The process to deliver this concentrate is similar to other graphite projects and the relatively simple design circuit lends additional credence to the proposed Blencowe approach of a modularised plant that is easily expandable. This would allow for a more modest start-up position to ensure lower risk via a lower capital requirement for initial production, but would allow for a quick ramp up process at any stage thereafter if market demand increases as forecast and requires higher production levels of graphite concentrate.
Blencowe and SGS Lakefield will continue to build on these results to achieve the optimal outcomes as final stages of test work nears completion. Thereafter further test work will commence on the quality of a sphericalised product from the smaller fines. High quality sphericalised graphite is used within the anode for lithium-ion batteries and supply is forecast to be in a significant deficit to demand ahead as the electric vehicle (EV) expansion gathers pace over the next decade.
Executive Chairman Cameron Pearce commented; “We entered this metallurgical test work with the goal of achieving best possible results for each of the four critical items under review, namely delivery of a high grade concentrate with low impurities, high recoveries, and the preservation of large flakes. To achieve all of these together in an end product would be a stellar result as it would put Orom-Cross right up there with the better graphite projects worldwide. We are working through each parts of this exercise and the results to date are positive and we are very encouraged with the test work results”
For further information please contact:
Blencowe Resources Plc
www.blencoweresourcesplc.com
Sam Quinn
Tel: +44 (0)1624 681 250
info@blencoweresourcesplc.com
Investor Relations
Tel: +44 (0)7891 677 441
Sasha Sethi
sasha@flowscomm.com
Brandon Hill Capital Limited
Tel: +44 (0)20 3463 5000
Jonathan Evans
jonathan.evans@brandonhillcapital.com
First Equity Limited
Tel: +44(0)20 7330 1883
Jason Robertson
jasonrobertson@firstequitylimited.com
Background
Orom-Cross is a potential world class graphite project both by size and end-product quality, with a
high component of larger flakes identified from previous work performed. A 21-year Mining Licence
was issued by the Ugandan Government in 2019 following extensive historical work on the deposit.
Orom-Cross presents as a large, shallow open pitable deposit, with an estimated total resource in
excess of three billion tonnes of graphite. Development of the resource is expected to benefit from a
low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.
Phase two drilling is underway to upgrade the JORC Standard resource estimate already achieved
and this will be completed in parallel to metallurgical test work underway to deliver a high grade end
product. With both of these Orom-Cross will move into feasibility study stage over the next 6-12
months.

Blencowe Resources Plc (BRES) – Stage Two Drilling Program Commences

Stage Two Drilling Program Commences at Orom-Cross Graphite Project

Highlights:

  • Stage Two 2,200m (74 holes) diamond drilling program underway in Uganda.
  • Designed to define a +10Mt TGC Measured and Indicated Resource from existing 16.3Mt.
  • Fully funded through existing cash resources.
  • Previously drilled high grade zones in Northern Syncline and Camp Lode to be included in new upgraded resource.
  • Additional in-fill drilling to provide basis for mine planning, delivery of geotechnical and other information, for inclusion in Pre-Feasibility Study (PFS).

Blencowe Resources Plc (“Blencowe Resources” or the “Company”) (LSE: BRES) is pleased to announce the commencement of the Stage Two drilling program at Orom-Cross, designed to in-fill the recently announced JORC Resource and upgrade substantial tonnes into the Indicated and Measured categories. This additional program will progress Orom-Cross along its development path towards first production, and will be executed using the Company’s in-country technical partners, ADT Drilling and Minrom Consulting. Additional resources will also be targeted in the current programme, with drilling also focusing on proven high grade areas, as yet not included in the maiden JORC Resource.

On 13 April 2021, Blencowe announced its maiden JORC Resource estimate for Orom-Cross, less than one year after acquiring the Project. The commencement of Stage Two, so soon after the highly successful maiden drilling programme, underlines the Company’s focus to add significant value efficiently and cost-effectively within this development phase.  The drilling campaign will progress in parallel with the ongoing metallurgical test work, with leading graphite expert SGS Lakeside in Toronto/Canada, the results of which are expected later this quarter.  The drilling program will take approximately 2-3 months to complete, with a similar amount of time thereafter to prepare samples, complete all assaying and provide a JORC Resource update. The Company will provide updates during the drilling campaign as appropriate.

The maiden JORC Resource delineated a 16.3Mt TGC resource at Orom-Cross, almost twice the size as the originally targeted. This next phase of development will bring the drill spacing closer together to ensure continuity of both product and grade, as required for mine planning within the PFS that will follow.

The Stage One drilling program also located higher grade graphite in the Camp Lode, which was only partially explored. Stage Two will therefore also target parts of the Camp Lode to bring it into the overall JORC Resource for the first time, which is likely to have a material positive impact on both grade and tonnes.

Cameron Pearce, Executive Chairman commented;

“I am delighted to announce the commencement of our fully funded Stage 2 drilling program, which we expect will add further material value to the Orom-Cross graphite project in Uganda. We are moving quickly towards the feasibility studies phase and this current drill program is designed not only to expand the resource’s size, grade and classification, but also ensure that all necessary geological and mining information required for those studies is subsequently available.  We have already come a long way in a short period of time at Orom-Cross. We look forward to the results of this next phase of drilling and the results of the ongoing metallurgical studies with great optimism.

“We remain firm believers that the battery metals market is only just beginning its massive growth cycle over the next decade. We believe this once-in-a-generation transformation will continue to expand exponentially into the future.  Benchmark Minerals Intelligence recently announced that over two hundred lithium-ion battery Megafactories are now in the pipeline worldwide, a significant growth from just seventy factories three years ago. These represent millions of tonnes of future graphite demand in the years ahead and support the positive outlook for the graphite market.

Accordingly, we are resolute in our position that Orom-Cross offers significant value and the ability to play a substantial role in helping to ease the significant forecast deficit of graphite in the future.  We have already been issued a 21-year mining license at Orom-Cross, which not only considerably de-risks our work ahead, but also should help the Company advance the asset into production in an expeditious manner.

I look forward to updating the market on the results of the metallurgical test work later this quarter.”

 

For further information please contact:

  Blencowe Resources Plc

Sam Quinn

Investor Relations

Sasha Sethi

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@lionsheadconsultants.com

Tel: +44 (0)7891  677 441

sasha@flowscomm.com

Brandon Hill Capital Limited

Jonathan Evans

Tel: +44 (0)20 3463 5000

jonathan.evans@brandonhillcapital.com

 First Equity Limited                                                            Tel: +44(0)20 7330 1883

 Jason Robertson                                                                  jasonrobertson@firstequitylimited.com

Background

Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of larger flakes identified from previous work performed. A 21-year Mining Licence was issued by the Ugandan Government in 2019 following extensive historical work on the deposit.

Orom-Cross presents as a large, shallow open pitable deposit, with an estimated resource in excess of 3 billion tonnes of graphite. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

Blencowe Resources #BRES warrant exercise raises £26,250

Blencowe Resources, the natural resources company focused on development of the Orom-Cross Graphite Project in Uganda, is pleased to announce that it has received warrant exercise notices in respect of 437,500 ordinary shares (the “Warrant Shares”) from warrant holders. The aggregate proceeds from the exercise of the Warrant Shares are £26,250.

An application has been made for the 437,500 ordinary shares of 0.5p to be admitted to trading on the London Stock Exchange with effect from 8.00 a.m. on 30 March 2021 (“Admission”).

In accordance with the FCA’s Disclosure Guidance and Transparency Rules, the Company confirms that following the issue of the Warrant Shares, the Company’s enlarged issued ordinary share capital will comprise 117,318,283 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.

For further information please contact:

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

Brandon Hill Capital Limited

Jonathan Evans

Tel: +44 (0)20 3463 5000 jonathan.evans@brandonhillcapital.com

First Equity Limited

Jason Robertson

Tel: +44 (0)20 7330 1883

jasonrobertson@firstequitylimited.com

Background

Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of larger flakes identified from previous work performed. A 21-year Mining Licence was issued by the Ugandan Government in 2019 following extensive historical work on the deposit.

Orom-Cross presents as a large, shallow open pitable deposit, with an estimated resource in excess of 3 billion tonnes of graphite. 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 CEO Mike Ralston talks to StockBox Media

Blencowe Resources #BRES CEO Mike Ralston talks to StockBox Media. Mike delivers a visual overview of the Orom-Cross Graphite Project and the progress made towards declaring a maiden JORC resource number.

Cadence Minerals and the next Commodity Supercycle

There is little doubt that historians will conclude that the global impact of COVID-19 represents the worst crisis since the Great Depression. The pandemic is leaving deep and enduring scars on the global economy, taxing health and medical services to the limit, depriving children of education, while decimating sectors of commerce and industry and in particular leisure and travel.

But history has shown on numerous occasions that the indomitable human spirit has a remarkable capacity for survival and evolution amidst existential crises. As areas such as traditional High St retail and seem to be drawing to a close, sectors such as commodities and mining are booming thanks to a near perfect storm created in part by the COVID crisis.

In October 2020, the IMF stated that the total bill for the global pandemic would reach some $28tn (£21.5tn) in lost output. The rapid intervention by global Governments with rate cuts, looser monetary policies and fiscal stimulus have certainly avoided a financial catastrophe, but at the same time these actions have effectively weakened fiat currencies and increased demand for commodities.

Historically the consequences of such events invariably see a strong recovery in commodity markets. This factor was clearly in evidence as 2020 progressed, and as the COVID noose tightened, prices of commodities such as Iron Ore, Copper and Nickel, along with precious metals including Gold and Silver, all increased in value.

As a consequence, as 2020 progressed prices of commodities such as Iron Ore, Copper and Nickel, along with precious metals including Gold and Silver, all increased in value.

In the wake of the sharp economic contractions in 2020, the IMF forecast that only China was expected to emerge with any economic growth during the year. 2021 is set to be a different story however, and with the vaccine rollout accelerating globally, there are expectations for sharp recoveries across most of the leading economies. Added to this, the new $1.9tn stimulus package in the US from the Biden administration will see heavy investment into ageing US infrastructure. These factors should ensure sustained demand and pricing for iron ore and base metals.

There is also the revolution taking place within the automotive industry to consider. The move towards EV’s is accelerating rapidly, with a plethora of commitments from key automotive manufacturers such as Ford, Volvo, BMW and Jaguar to switch to electric only production in the next few years. This move of course sounds the death knell for the internal combustion engine, but at the same time is driving the cost of battery metals and component commodities such as lithium, nickel, cobalt and graphite

The net effect is that mining, specific commodities and minerals, along with the sector’s nebulous support service industries are undergoing a significant global resurgence. Projects considered uneconomical to develop, and that have remained dormant for years are returning to life, newly financed and fast tracked thanks to the array of modern desktop technologies, data and modelling tools.

Iron Ore

In a note published last December, Goldman Sachs outlined their expectations for another substantial deficit next year (27Mt, GSe), supported by a combination of gradually decelerating China steel demand growth, sharply re-accelerating demand for Western steel and tepid supply growth. GS added that the weighting of the 2021 deficit to the front half of the year points to fundamental support for a sustained price path higher over Q1 and Q2, revising near-term targets for the benchmark 62% iron ore price to 3M $140/t and 6M $150/t.

These numbers of course imply material upside longer term, and GS have also upgraded full year forecasts for 2021 to $120/t ($90/t previously) and for 2022 to $95/t ($75/t previously).

GS sees four core drivers supporting this bullish view:

  1. Chinese steel production has remained strong & production in 2021 remains supported by a healthy infrastructure and property project pipeline, alongside a resurgence in China’s manufacturing capex cycle and steel exports.
  2. With construction and heavy industry remaining relatively less affected by second-wave lockdowns, Western steel demand is also recovering ahead of expectations. Significant regional price strength in the US and Europe is likely to spur further blast furnace restarts (and hence iron demand) after an aggressive suspensions phase in 2020 contributed to the current steel supply shortfalls as demand recovers.
  3. Iron ore supply growth is likely to stagnate in 2021. The limited growth that exists next year is concentrated with Vale Brazil operations, which is why their recent substantive downgrade to production guidance has had such an outsized positive impact on price.
  4. Chinese mill iron ore inventories remain low, raising the prospect of restocking bursts through the year.

For Cadence Minerals, this bullish outlook for iron ore puts two very firm ticks in the box, firstly for what is widely regarded as the company’s flagship Amapa Iron Ore project in Brazil, and secondly the investment in ASX and TSX listed Macarthur Minerals, with whom Amapa shares numerous infrastructural and evolutionary similarities.

Amapa Project

Bringing a project the size and scale of Amapa back to life has as expected proved to be a complex and challenging process. Nonetheless, DEV Mineração, Cadence and Indo Sino Pty Ltd are reaching a legal settlement with the project creditors, and with the ruling in February by the Commercial Court of São Paulo that port operations and the shipment of iron ore stockpiles can begin, the company is set to take the first practical step towards bringing the project back to life, which will in turn bring benefits to the Amapa region in terms of employment, health and education.

Once the creditor settlement agreement has been signed, an initial $2.5m investment will be released from escrow, meaning that the Pedra Branca Alliance (Cadence & Indo Sino JV co) will own 99.9% of DEV, the owner of the entire Amapa mining and processing assets,. At this point Cadence will proportionately own 20% of Amapa. The next step will involve a further $3.5m investment following the granting of the necessary environmental licenses required to operate the mine, which will see Cadence move to a 27% stake, with an option to increase to 49% once project financing has been raised to complete recommissioning and commence production.

Last November Cadence completed an updated Mineral Resource Estimate for Amapa, which increased the 2012 Anglo American MRE estimate by 21% to 176.7 million tonnes (“Mt”) grading 39.7% Fe in the Indicated category. With a production capacity of 5.3Mt per annum, the survey also noted there was significant potential to increase the resource base after the completion of metallurgical and optimisation studies.

Lake Giles Iron Project

Cadence also has a stake (c1%) in ASX and TSX listed Macarthur Minerals, owner of the Lake Giles Iron Project near Kalgoorlie in Western Australia. The Lake Giles project consists of the Moonshine magnetite deposit and the Ularring hematite deposit, which together have an indicated Mineral Resource Estimate of 218Mt grading 27.5% Fe in the Indicated category.

Lake Giles and Amapa share many similarities in regard to facilities and production routes, and with the Feasibility Study already underway, Lake Giles has a 3.4 Mt per annum production target with potential to scale-up operations.

Lithium

A recent paper published by commodities expert Fastmarkets FB noted that global lithium supply was developing at accelerating pace due to strong and continually growing demand. In particular the demand for compounds used in lithium-ion (li-ion) batteries such as lithium carbonate and lithium hydroxide has prompted lithium producers to expand total production while diversifying their investments in different lithium operations to ramp up production and diminish asset risk.

Despite an effective over supply in 2018-2019 that saw a price moratorium and a 50% fall in the price of battery-grade lithium carbonate in China, the subsequent seismic shift to bring forward EV production and commitments from major automotive manufacturers around the world saw the price of Lithium in China surge to an 18 month high of $9450 per tonne in January 2021.

The Fastmarkets’ research team expects global lithium demand to grow to at least 1.1 million tonnes per year of lithium-carbonate equivalent (LCE) by 2025 from an expected 300,000 tonnes of LCE in 2019, with Global lithium producers set to boost output year on year to maintain pace with growing demand. Despite this, as can be seen from the table above the numbers still don’t add up, with massive shortfalls projected by Benchmark Intelligence in lithium and other key constituent metals by 2030.

Over 2018, China emerged as the world’s leading lithium-processing hub with the rapid growth of companies like Ganfeng Lithium, which specialise in converting lithium concentrate from hard rock.

Cinovec – European Metals Holdings

The Cinovec project is the largest hard rock lithium resource in Europe and 4th largest non-brine resource in the world. Perfectly located to become the central lithium supply hub for the European EV industry, Cadence owns a 12% stake in AIM listed European Metals Holdings (EMH), which in turn owns 49% of the Cinovec project, (51% owned by utilities giant CEZ Group).

Cinovec is a potential low-cost producer at the bottom of the cost curve, and will sustainably supply 25,267 tpa lithium hydroxide or 22,500 tpa lithium carbonate into the European battery market.

Sonora Lithium Project

Cadence is a 30% joint venture partner with Bacanora Lithium (BCN) on the Fleur Lease (Mexalit & Megalit) at the Sonora Lithium Project in Mexico. A completed feasibility study values Sonora Mexico at US$1.25bn NPV, with some of the lowest production costs at $4,000/t in the industry.

AIM listed Bacanora is focused on building a 35,000 tpa lithium carbonate operation at Sonora with 50% owner and take off partner Ganfeng Lithium.

Australia Hard Rock Lithium Projects

Cadence owns three dormant hard rock lithium assets in Australia. These are Picasso (Western Australia – WA), Litchfield (Northern Territories – NT) and Alcoota (NT) all of which are in regions with proven lithium mineralisation and supportive mining infrastructure.

The Litchfield project, located near Darwin (NT), has an exploration license granted and is contiguous to Core Lithium’s (ASX: CXO) territory. Core has a JORC compliant mineral resource of 8.55Mt @ 1.33% Li2O for its Finnis project (for all six deposits).

Yangibana Rare Earths Project

Operated by ASX listed Hastings Technology Metals, Yangibana is a substantial Rare Earths deposit near Gascoyne in Western Australia. Drilling and sampling have revealed high concentrations of Neodymium and Praseodymium (NdPr), essential components in permanent magnets used in electric vehicles.

Cadence is a 30% joint venture partner with Hastings on part of the Yangibana Rare Earth Element Project. Probable Ore Reserves within the tenements held by Cadence are just over 2m tonnes with TREO of 1.66%.

The current mine plan anticipates production to start from the joint venture areas (Yangibana) in year 6.

A Key Role?

Around the world today there are countless mining exploration companies, commodity investors and mine operators with projects offering scope for development and potential for investment. The challenge with any project of this nature is matching the opportunity with the macro backdrop, projected demand for the commodity alongside capex vs. return, production routes, shipping and completion of cycle to bring the product to the customer.

Rarely if ever has the industry been presented with so compelling a backdrop for the commodity market as a whole. The significant global resurgence seen in the mining sector at present given is entirely sustainable given the level of asset purchases and spending by Governments to rejuvenate damaged economies and the inevitable resulting erosion in fiat currency value.

As economies emerge from the havoc wrought by the COVID virus and restrictions on spending are lifted, it is clear that in many cases demand will outstrip availability. This will apply almost without exception across the commodity spectrum – iron ore for steel to fund reconstruction – lithium, nickel, cobalt, graphite and rare earths to address the burgeoning demand for lithium-ion battery production.

There is no doubt that the recovering global economy is embarking on the next great Commodity Supercycle. Many mining groups and commodity project investors will benefit from this phenomenon by owning the right projects, at the right stage of evolution at the right time. On the evidence available today, Cadence Minerals is certainly one of them.

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