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Blencowe Resources #BRES – Final Infill Results Confirm Continuity and Scale at Orom-Cross
Blencowe Resources Plc (LSE: BRES) is pleased to announce the final assay results from its Stage 7 drilling programme at its Orom-Cross graphite project in northern Uganda. These results mark the completion of the infill drilling phase and they provide the last data required to finalise the JORC Resource and Reserve update, which is a key input into the Definitive Feasibility Study (DFS) due for completion by December 2025.
The Northern Syncline represents Orom-Cross’s largest deposit and the bulk of the long-term mine plan. The latest infill assays have returned strong graphite intersections across the full depth of the oxide zone, highlighting the remarkable continuity of this orebody. The strategy was to close gaps from earlier campaigns to improve geological confidence and to upgrade the classification of Resources to Reserves.
These results follow the strong Camp Lode assays reported earlier this month, which confirmed a series of high-grade, near-surface zones ideal for early-stage mining and cash flow generation. Together, these deposits provide both high-grade starter feed and long-life scalability, strengthening overall project economics and underpinning a robust mine plan for Orom-Cross.
Highlights:
· Final infill assay results from the Northern Syncline deposit completes all drilling required for the JORC Resource and Reserve update (now in progress).
· JORC update expected within approximately two weeks, feeding directly into the Definitive Feasibility Study (DFS) which remains on track for completion before year-end.
· Northern Syncline infill drilling confirms broad, consistent mineralisation throughout the oxide zone, demonstrating strong grade continuity and the large-scale nature of the orebody.
· Camp Lode and Northern Syncline together underpin the DFS mine plan, balancing high-grade near-surface ore with larger-scale bulk tonnage for long-term production.
· Step-out exploration drilling at the new Lyan (Northern Syncline western limb extension) and Beehive deposits has concluded, with assay results expected to follow post-DFS to provide additional exploration upside.
Selected Northern Syncline Drill Results:
· Hole L2301: 20.57m @ 6.52% TGC.
· Hole L2302: 25.08m @ 4.98% TGC, including 4.9m @ 7.90% TGC and 4.1m @ 9.30%TGC
· Hole L1901: 23.07m @ 4.36% TGC, including 7.45m @ 6.53% TGC and 4.87m @ 6.37%TGC.
· Hole: L2202: 21.52m @ 5.01% TGC, including 8.24m @ 7.51%TGC and 3.27m @ 6.33%TGC.
· Hole L2102: Mineralisation from surface to 30.4m, including 7.02m @6.01%TGC.
Significance: These results confirm continuous mineralisation and add additional tonnes to the Northern Syncline, optimising mine scheduling for early production phases.
Further Assays and Next Steps
The Stage 7 drilling programme, totalling 7,750 metres, is now concluded. It combined infill and geotechnical drilling across Camp Lode and Northern Syncline with step-out exploration at Lyan, Beehive and the deep holes.
All infill and geotechnical data are now being incorporated into the updated geological model, which will underpin detailed mine design, pit optimisation and sequencing for the DFS. This information will also feed into the JORC Resource upgrade, which is expected to deliver a material increase in Reserves to support a longer mine life at higher production rates.
While the Lyan, Beehive and deep holes assay results will not form part of the imminent JORC update, these zones have shown promising continuity along strike and at depth, confirming significant exploration upside. Their results will be reported post-DFS and will support the definition of a new Exploration Target as the basis for further growth in the JORC Resource in 2026.
Blencowe now has four active graphite deposits at Orom-Cross, being Northern Syncline, Camp Lode, Lyan and Beehive, with each continuing to demonstrate outstanding scale, grade and continuity.
Executive Chairman Cameron Pearce commented:
“We are pleased to share these latest results from the Northern Syncline, which underline the incredible continuity within this orebody. The length of these intersections and their shallow nature combine to allow for low strip ratios and an overall reduction in mining costs, which is a critical requirement for success ahead.”
This drill programme continues to highlight that Orom-Cross has substantial volume of graphite near to surface, it has high grade zones, it continues at depth, and it has continuity. When we add the very high quality end products confirmed by international test work, we believe we are developing one of the premier graphite ore bodies in the world.
What also makes this so remarkable is that we have still only drilled a small fraction of Orom-Cross overall which provides huge upside potential ahead.
As we move toward the DFS release and project financing discussions, we continue to see exceptional technical validation and growing interest from institutional and strategic partners worldwide.”
Preliminary drill results Northern Syncline
Further Drilling Detail
The Company drilled 39 diamond drillholes in the Northern Syncline deposit as part of a resource infill and upgrade exercise. At Northern Syncline these holes have fulfilled the intended purpose by infilling the gaps from the previous drill programs as the Company takes a measured and methodical approach to the confirmation and upgrade of the resource classification for the deposit.
Blencowe is extremely buoyed by these results as they indicate the consistent and continuous nature of the mineralisation along the strike of the deposit but also over the depth of the oxide zones to 30 meters. This bodes well for a reduction in operational costs with good indicators for a lower stripping ratio and the thus more efficient utilisation of the equipment and lower costs with associated waste handling.
The intersections from the program all indicate the consistent and known nature of the Northern Syncline deposit as a large volume deposit averaging 5-6%TGC and this confirms the expectations of Blencowe and enables optimisation of the processing to reduce costs and increase recovery of the graphite flakes.
As highlighted previously the ability to mine substantial volume of graphite from shallow depths contributes to Orom-Cross having operating costs sitting within the lowest percentile of graphite projects worldwide, which is considered a major advantage as Blencowe drives towards first production. The consistent nature of the grade and ore characteristics within the deposit benefits the Company in that it will be able to ensure that regular, reliable high quality products are delivered long-term to offtakers, and these are factors that offtakers require above all else.
Figures 1: Map showing the 4x Orom-Cross deposits, including Camp Lode, Northern Syncline, and new Lyan (NS western limb) and Beehive (GT 01a) deposits.
For further information please contact:
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Blencowe Resources Plc Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250
|
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Investor Relations Sasha Sethi |
Tel: +44 (0) 7891 677 441 sasha.sethi@blencoweresourcesplc.com
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Tavira Financial Jonathan Evans |
Tel: +44 (0)20 3192 1733
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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 finalising 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 – First Offtake MOU Signed for 15,000 Tonnes of Large Flake Per Annum
Blencowe Resources signs its first non-binding Memorandum of Understanding (“MOU”) for natural large flake concentrate offtake from the Orom-Cross Graphite Project. Partnering with Jilin New Technology Graphite Co. (“Jilin”), a prominent global graphite consumer, this initial MOU is the first of several offtake agreements anticipated to complete in the near future ahead of completing the DFS.
Highlights:
- Agreement provides for sale of significant percentage of large flake end products
- Offtake Supply Agreement: MOU to supply 15,000t/annum of blended large flake graphite, covering 66% of Orom Cross initial large flake production for up to three years from start.
- Industry Leader Jilin is a leading processor of battery anode materials and expandable graphite based in north east China.
- Pricing Terms to Follow: Pricing to be agreed under the terms of a formal agreement to be
entered into following completion of the Orom-Cross Definitive Feasibility Study (“DFS”). - Higher Revenue Contribution: As large flake concentrate commands substantially higher
prices than small flakes this MOU covers approx. 50% of the total revenue from Orom-Cross. - Product Validation through Testing: Initial offtake MOU follows substantial test work,
validating product quality. - Advanced Pilot Plant Progress: 600-tonne bulk sample test program nearing completion,
facilitating direct engagement with potential customers for small flake concentrate. - Ongoing Tier-One Discussions: Following successful trip to China and South Korea, Blencowe maintains positive discussions with tier-one offtakers worldwide for the balance of its planned
annual graphite production.
Jilin MOU
The Jilin MOU follows extensive discussions between Blencowe senior management during the recent visit to China, and follows successful bulk testing of graphite concentrate produced by Orom-Cross.
Jilin, a leading vertically integrated graphite producer, is the parent company of the group that completed the 100 tonne bulk sample for Blencowe in 2023 and is currently undertaking the 600t bulk sample processing program which is nearing completion.
The 600t bulk sample will generate commercial scale graphite concentrate divided into large and small flakes. The small flake concentrate will be upgraded to 99.95% by a leading Chinese SPG (spheronised purified graphite) producer, to be distributed to OEMs thereafter for their own testing. Completion of this exercise will be in Q3 2024, facilitating qualification of Orom-Cross small flake products with tier-one offtakers and paving the way for offtake agreements (currently under discussion). This small flake qualification process leading to offtake agreements, which often takes several years, has been expedited by Blencowe who will have completed it in a much shorter timeframe than other graphite companies.
Unlike small flake product, large flake products do not require the same qualification process, hence the more rapid move to signing this first MOU.
Orom Cross Production
The Pre-Feasibility Study envisages Orom-Cross initially delivering 50,000tpa of concentrate post commencement of full mining operations. Approximately 45% of this will be delivered as large flake products which means that the Company will have up to 22,500t per annum of large flake capacity to sell.
This Jilin MOU thus encompasses two-thirds of the company’s proposed steady state production of large flake graphite products (+100mesh, +80mesh and +50mesh) within the first three years. Thereafter it is anticipated the overall production volume will ramp up substantially. Given that large flake concentrate commands substantially higher prices than small flakes, this 15,000tpa to Jilin represents nearly 50% of the anticipated initial total revenue from Orom-Cross, underscoring the MOU’s significance in the context of future project financing and returns.
Other MOUs
Blencowe is currently in advanced negotiations with multiple leading OEMs in China and South Korea regarding the sale of its remaining large flake products and smaller flake products utilised in batteries. These discussions have been positive and the Company anticipates delivering further MOUs with leading buyers of graphite products worldwide with the aim of securing offtake partners for the entire production output from Orom-Cross.
Executive Chairman Cameron Pearce commented:
“This MOU is a key milestone for the Company and it is just the beginning. We anticipate announcing several more agreements over the next few months. Jilin is a leading graphite company globally and this is a strong endorsement of the graphite product from Orom-Cross. The 600-tonne bulk testing program will allow us to provide concentrate to qualify our small flake products through a rigorous qualification process so that we can progress offtake discussions with other tier-one consumers of graphite. We have been able to fast-track what is typically a lengthy process and look forward to completing this qualification process shortly by delivering the relevant concentrate and SPG to these groups.”
“This key milestone reflects the rapid progress we have made. Over the coming months we expect to maintain momentum by securing further MOUs and advancing the DFS. Each step brings us closer to unlocking more value and further de-risking the Orom-Cross project. We look forward to delivering further updates on project key components particularly results of our 600-tonne testing programme and further on offtakes.”
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
Tel: +44 (0)20 3192 1733
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 has moved into the Definitive Feasibility Study phase as it drives towards first production.
Orom-Cross presents as a large, shallow open-pitable deposit, with a maiden JORC Indicated & Inferred Mineral Resource deposit of 24.5Mt @ 6.0% Total Graphite Content. 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 – Placing to Raise £235,000
Blencowe Resources, the natural resources company focussed on the development of the Orom-Cross Graphite Project in Uganda, is pleased to announce that it has raised £235,000 in a placing at 6 pence per share through the issue of 3,925,000 new ordinary shares (“Placing”). Also, the placees will receive one warrant per every two placing share to Each Placing shares will to subscribe for shares at 8 pence per share for a period of three years (“Warrant”).
The fundraise will be used to advance the development of the Orom-Cross Project and the Pre-Feasibility Study which is due to commence following confirmation of the updated JORC Resource in late Q3 2021.
The Company has made an application for 3,925,000 ordinary shares to be admitted to trading on the official list and the London Stock Exchange with effect from 8.00 a.m. on 20 July 2021 (“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 121,929,950 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.
Cameron Pearce Executive Chairman commented:
“Following the announcement of our recent Metallurgical Test Work we are keen to keep progressing the Orom-Cross Graphite project at a rapid pace and have taken this opportunity to raise some additional capital to fund ongoing operations. We look forward to updating the market on further developments over the coming weeks and months.”
For further information please contact:
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Blencowe Resources Plc Sam Quinn
|
Tel: +44 (0)1624 681 250 |
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Investor Enquiries Sasha Sethi |
Tel: +44 (0) 7891 677 441 Email: sasha@flowcomms.com |
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Brandon Hill Capital Limited Jonathan Evans |
Tel: +44 (0)20 3463 5000 |
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First Equity Limited Jason Robertson |
Tel: +44 (0)20 7330 1883 |
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.