Blencowe Resources PLC Recommencement of metallurgical test work (3639M)
May 11 2020 - 1:00AM
UK Regulatory
TIDMBRES
RNS Number : 3639M
Blencowe Resources PLC
11 May 2020
Date: 11 May 2020 Blencowe Resources
("Blencowe" or the "Company")
Recommencement of Phase Two Metallurgical Test Work for
Orom-Cross Graphite Project
Blencowe Resources Plc, is pleased to announce it has now
recommenced key metallurgical test work on its Orom-Cross graphite
project in Northern Uganda. The test work, which began in South
Africa at the start of 2020, had been placed on hold for six weeks
from late March due to a nationwide lockdown introduced by the
government to help combat Covid-19. Blencowe is pleased to report
these restrictions have now been partially lifted, allowing for
labs to recommence the processing of existing samples from
Orom-Cross. This work is being undertaken by technical experts
Metanza.
The objective of the ongoing metallurgical test work is to
further understand the quality of the end-product that Orom-Cross
can deliver, as well as what the process flow will look like.
Blencowe believe Orom-Cross has the potential to deliver a high
grade graphite concentrate, which would prove desirable to
potential offtakers and the broader market.
The Company recently announced that its ongoing 59 hole and 1800
metre diamond drilling programme in Uganda was also due to
recommence in the near term, following Covid-19 related shutdown.
The drill programme (of which circa 25% has already been completed)
is designed to deliver a maiden JORC Resource for Orom-Cross during
the middle of 2020. Both the drilling and the metallurgical test
work are fully funded and form integral parts of the development of
this project. The Company looks forward to both sets of results
ahead of the commencement of a feasibility study later in the
year.
Phase 2 Metallurgical Testwork Program
In the second half of 2019 Metzana Minerals in South Africa was
commissioned to undertake a first phase confirmatory metallurgical
test work program to confirm Total Graphite Content (TGC) of at
least 94%, and to consider recoveries, impurities and retention of
flake size within the concentrate. This was successfully achieved
along with confirmation of low impurities.
In February 2020 a resultant second phase test work campaign
commenced to build on the positive findings in phase one and to
confirm the liberation pathway for increased recoveries and an even
higher grade within the concentrate.
The first two (of six) stages for this work was completed prior
to Coronavirus lockdown in South Africa, and work is now resuming
on the remaining stages as that country re-opens.
The key objectives of the Phase Two metallurgical test work are
as follows:
-- Confirm a 95-97% TGC pure concentrate is possible with low
impurities (particularly thorium and vanadium).
-- Confirm 80% recovery is achievable for this concentrate.
-- Confirm the liberation process in order to maintain a
majority of Jumbo/XL/Large flakes within the concentrate.
-- Confirm the process flow diagram for plant design as part of
the forthcoming Feasibility Study.
-- Deliver bulk concentrate to allow Blencowe to initiate
discussions with potential off-take partners.
If Blencowe is able to deliver a concentrate with these
properties it will have a graphite product of considerable value.
Early results are encouraging with both recovery and grades at
higher levels than the first stage testwork program.
Upon completion Blencowe will be able to initiate discussions
with various potential offtake parties as regards sale of product,
which is a critical part of the overall process to bring Orom-Cross
into production.
Likely timing to complete this exercise is approximately three
months but this remains dependant on business practises returning
to normal in South Africa to allow for work there to continue
unhindered.
Cameron Pearce Executive Chairman commented;
"The first phase of metallurgical test work completed during the
Orom-Cross due diligence exercise provided evidence that the
graphite concentrate could achieve a 94% TGC, which was a highly
encouraging result for a first pass, being an acceptable level for
sale of product. This next phase of work is designed to take the
product to the next level by targeting a higher grade 95-97% TCG as
well as increased recoveries. If successful it will significantly
increase the desirability and value of the Orom-Cross product.
Understanding both the end product and the process flow to deliver
this, is a significant step forward in terms of value creation.
We are confident we can achieve our stated objectives and thus
deliver a quality product that will be higher up the price curve as
well as in greater demand. I look forward to providing further
updates in due course."
For further information please contact:
Blencowe Resources Plc
Sam Quinn (UK Director)
www.blencoweresourcesplc.com
Tel: +44 (0)1624 681 250
info@blencoweresourcesplc.com
Brandon Hill Capital Limited www.brandonhillcapital.com
Jonathan Evans (Corporate Finance) Tel: +44 (0)20 3463 5000
jonathan.evans@brandonhillcapital.com
About Orom-Cross Project
Orom-Cross is a substantial graphite project in northern Uganda.
Blencowe Resources acquired 100% of this asset in April 2020
following extensive due diligence and a capital raise of GBP 2
million in the UK. These funds will be utilised to advance
Orom-Cross through to a maiden JORC Resource, followed by a
feasibility study and ultimately to a decision to mine.
Orom-Cross has several key characteristics that suggest it can
be a standout graphite project; namely considerable size and scale,
significant graphite near to surface that suggests low strip ratio
for mining and a low cost operation, predominantly large flakes
which may yield a high grade, highly sought after concentrate as
its end-product, and a lower sovereign risk location as considered
in relation to many other similar large graphite projects in
Africa.
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END
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