Blencowe Resourcse (BRES) said metallurgical test work on its Orom-Cross graphite project has returned positive results meaning that offtake discussions can now be advanced rapidly.
The London-listed mining company explained how this metallurgical test work is critical to understanding the quality of the end-product(s) that Orom-Cross can deliver to market as a high grade graphite concentrate, as well as what the process flow will look like to achieve this.
Blencowe appointed SGS Lakefield in Canada to undertake metallurgical testwork on material gathered from its 69 hole, 1950 metre 2020 diamond drilling programme, which covered both the Northern Syncline and Camp Lode areas at the Orom-Cross project in Northern Uganda.
Blencowe said the strong results showed concentrate grades that consistently range at the top end of the spectrum (between 97-98% total graphite content or “TGC”) with low impurities.
Overall, the metallurgical test-work undertaken to date shows ‘a robust flowsheet capable of repeatable metallurgy for a wide range of feed samples from Orom-Cross.’ Blencowe said this consistency is very important in delivering an end product of the highest quality.
The Group said the process also doesn't require grinding or crushing the ore, which can lead to lower capital expenditure and operating costs compared with hard-rock graphite deposits.
Following the results, Blencowe said it is now better positioned to advance discussions with strategic groups in the knowledge it can deliver a range of high grade end products as it can now deliver samples as required to provide evidence for further due diligence or local testing.
In particular, Blencowe said it will mandate an experienced engineering firm to begin formal plant design and this work is expected to be included as part of the Pre-Feasibility Study.
"We are absolutely delighted to share these exceptional metallurgical test results for Orom-Cross. They highlight the fact that we have a very high quality of end products that we will produce, which should not only be in higher demand but should also deliver higher prices. In all facets these results have exceeded our expectations and they underline the world class potential of Orom-Cross,” commented Cameron Pearce, Executive Chairman of Blencowe Resources.
Blencowe’s ongoing drilling programs recently delivered its first 16Mt JORC Resource. The Company said it is now in the process of upgrading this via 2,000m of further infill drilling.
Addressing shareholders, Pearce added, “Now our metallurgical test results have added considerable weight to this by showing what an impressive range of end products we can deliver. The next step is to engage in more detail with strategic groups that have been waiting for the test work result and to begin reviewing the project economics of the mine.”
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In May 2021, Blencowe Resources initiated the second stage of its diamond drilling program at the Orom-Cross Graphite Project which it said would involve drilling 2,200m, or 74 holes.
The program, which has already commenced at the project in Uganda and is fully funded through the Company’s existing cash resources, is designed to in-fill the recently announced JORC Resource and upgrade substantial tonnes into the Indicated and Measured categories.
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 Company said it remains “firm believers'' that the battery metals market is only just beginning its massive growth cycle over the next decade. It said it believes this “once-in-a-generation transformation will continue to expand exponentially into the future.”
In May 2021, analysts at independent broking firm First Equity Limited said they continue to rate Blencowe as a ‘Buy’, with an initial 6-month price target of 21p. Shares in Blencowe Resources were trading 8.00% higher this morning at 6.75p following the announcement.
Blencowe is a mineral resources company focused on fast-tracking its 100% owned Orom Cross Jumbo Graphite Project in Uganda to production. Orom Cross is an advanced exploration stage project which was awarded a 21-year mining licence in October 2019.
The development company which is currently focused on bringing the Orom-Cross graphite project into production, completed its 69-hole (1,950m) diamond drill programme into the Eastern Limb Lode and the High-Grade Camp Lode in September 2020.
The size and scale from exploration work that has already been completed in the licence area has clearly demonstrated that Orom Cross has the potential ‘to become one of the largest graphite projects in the world based on both size and the quality of the end product.’
Blencowe is fast tracking the project through to defining a maiden JORC-compliant resource, completing further metallurgical test work with a plan to deliver a Preliminary Economic Assessment (PEA) in Q1 2021 followed shortly after by a Pre- Feasibility Study (PFS).
Align Research describes Graphite as ‘an important battery metal’ since it represents around 50% of Li-ion batteries by mass, which uses the smaller sized flakes. In recent years there have been some racy growth rates suggested for graphite demand for lithium ion batteries.
Meanwhile, the group said demand for electric vehicles (EV) is rising on the back of green legislation being adopted by the UK, India, Germany, France, Norway and China, which is expected to lead to an increasing demand for Li-ion batteries and in turn for graphite.
Another integral factor is that Uganda’s economy is believed to hold ‘great potential’ with this whole region of East Africa viewed as a key African growth platform by the World Bank, hosting significant natural resources including copper, cobalt, gold, nickel and platinum.
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