Blencowe Resources (BRES ) has delivered ‘outstanding’ high grade graphite results from the Camp Lode deposit at the Orom-Cross graphite project in Uganda which have confirmed the quality of the project's mineralisation and its ability to be a low-cost producer.
The “excellent” results uncovered from the Company’s drilling programme at Camp Lode (Fig.1) will now be incorporated in the broader maiden JORC Mineral Resource and Reserve Estimate at the Orom-Cross graphite project which is scheduled for release in March 2021.
Figure 1: Map of the Drilling Programme
(Source: Blencowe Resources)
The drilling targeted both infill zones and strike extensions to existing high-grade oxide mineralization and confirmed the geological interpretations as well as grade continuity.
The programme was shown to deliver high grade graphite results with the expectation for the average grade to be around double the already high average Orom-Cross grade.
The holes to date have returned visible grade graphite over the majority of 30m of intersection, with weathering extending to within 5m of the base of the holes in most cases. The expectation is for grades to be up to double the 7-8% average Orom-Cross grade.
‘This may present Blencowe with high grade ore for initial mining which could have significant advantages for both mining costs and product quality,’ the Group noted.
The mineral explorer told investors that the results, which come from the weathered, close-to or at-surface zone of the Camp Lode deposit at Orom-Cross, highlight the quality of the project's mineralisation and ultimately its ability to be a low-cost producer.
Specifically, the Camp Lode Deposit was subjected to a diamond drill hole program on a 50 metre by 12.5 metre grid. The Company noted that the drilling was designed to qualify the initial production area for the deposit as a high-grade supplement to the main deposit.
Blencowe said it continues to receive the sample assays for a 53 diamond drill hole program undertaken on the Eastern Syncline Lode and QA/QC checks are expected to be completed shortly enabling the Group to proceed to finalising the Mineral Resource Estimate.
Subsequent logging by company geologists has also identified zones of large to jumbo flakes in the core. The core has now been assayed at SGS in Johannesburg using the method C-IR18. The method is appropriate for understanding graphite deposits and is a total method.
Commenting on the results, Executive Chairman Cameron Pearce, stated that. "We have always believed that this Camp Lode offered a very valuable source of graphite to mine in the initial phase of development. These assay results have proven this and delivered a great result, which can underpin our mine plan and ultimately deliver considerable value.
As the growth in electric vehicle (EV) and new generation battery demand continues to gather momentum worldwide, the Blencowe team are working hard to develop our 100% owned Orom-Cross graphite project into a valuable mining prospect and future supply hub that can deliver significant tonnes of high quality end-product into several key markets."
These impressive the results, which come from the weathered, close-to or at-surface zone of the Camp Lode deposit at Orom-Cross, highlight to investors both the quality of the project's mineralisation and underpins the Company’s aim to become a low-cost producer for the rapidly expanding Graphite markets. Shares in Blencowe Resources have increased by nearly 25% since the beginning of November 2020 to open 3.45% higher this morning at 7.375p following the news.
Reasons to BRES
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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