Date: 25 January 2024
Blencowe Resources
Plc
("Blencowe" or the "Company")
Second tranche US$1 million
Grant Funding received from US International Development Finance
Corporation
Funds paid to Blencowe for Orom-Cross
Project Definitive Feasibility Costs
Blencowe Resources Plc ("Blencowe" or the
"Company") (LSE: BRES) is pleased to announce it has received its
second tranche US$1 million funding payment from the United States
International Development Finance Corporation ("DFC"). This
represents a further 20% of the full US$5 million DFC grant to be
utilised for Orom-Cross Definitive Feasibility Study ("DFS") costs,
with US$2 million received in total to date since this agreement
was signed in 2023.
This tranche was disbursed on the completion of
several key goals as delivered within the DFS, namely;
·
Tailings processing and disposal options study
completed.
·
Spheronised purified graphite ("SPG") test work completed
(both coated and uncoated products).
·
Processing plant flowsheet finalised through 100 tonne pilot
plant testing.
·
Further 600 tonnes bulk sample mined and ready for export to
China for stage two commercial scale testing.
Blencowe can report that all of the above tasks
were successfully completed with results reported to market in 4Q
2023. The SPG test work completed by a leading US graphite
technical expert was particularly noteworthy as results indicate
Orom-Cross graphite can be purified up to a 99.995% product, which
is rare and puts the graphite quality from Orom-Cross at the very
highest level.
This is of great significance when considering
niche markets, product pricing and offtake
relationships.
The Company is well on its way to completing
the milestones as required for disbursement of the third DFC
tranche of grant funds, which will deliver another US$1 million for
additional DFS work.
Additionally the Company is continuing to see
strong levels of serious interest from a range of high quality
offtake groups and strategic parties.
Cameron Pearce, Executive Chairman
commented;
"Following successful completion of key feasibility study
milestones this latest tranche of grant funding we have received
from DFC is valuable to Blencowe and we extend our sincere
appreciation to the DFC for their ongoing support. The DFC
remains a critical strategic partner of Blencowe with discussions
underway as to potential funding support from the DFC for the full
Orom-Cross graphite project implementation
ahead."
Mr Pearce added, "I would also like to extend our thanks to
our entire operational team both in-country and beyond for their
steadfast commitment to achieving objectives and driving progress
with the Orom-Cross feasibility study. Orom-Cross is a unique
graphite project with its rare suite of key attributes amongst its
peers. The DFC identified these outstanding characteristics
in their due diligence process when assessing Orom-Cross and
investors should note that other strategic parties are also taking
notice, which provides a strong platform for activities in
2024."
For further information please
contact:
Twitter https://twitter.com/BlencoweRes
LinkedIn https://www.linkedin.com/company/72382491/admin/
Background
Orom-Cross Graphite
Project
Orom-Cross is a potential world class graphite
project both by size and end-product quality, with a high component
of more valuable larger coarse flakes within the
deposit.
A 21-year Mining Licence for the project was
issued by the Ugandan Government in 2019 following extensive
historical work on the deposit. Blencowe completed a
successful Pre-Feasibility Study on the Project in July 2022 and is
now within the Definitive Feasibility Study phase as it drives
towards first production.
Orom-Cross presents as a large, shallow
open-pitable deposit, with an initial JORC Indicated & Inferred
Mineral Resource of 24.5Mt @ 6.0% TGC (Total Graphite Content).
This Resource has been defined from only ~2% of the total tenement
area which presents considerable upside potential ahead.
Development of the resource is expected to benefit from a low strip
ratio and free dig operations together with abundant inexpensive
hydro-electric power off the national grid, thereby ensuring low
operating costs. With all major infrastructure available at
or near to site the capital costs will also be relatively low in
comparison to most graphite peers.