Blencowe Resources PLC Stage Two Drilling Program Commences (3283X)
May 04 2021 - 1:00AM
UK Regulatory
TIDMBRES
RNS Number : 3283X
Blencowe Resources PLC
04 May 2021
Date: 4th May 2021 Blencowe Resources Plc
("Blencowe" or the "Company")
Stage Two Drilling Program Commences at Orom-Cross Graphite
Project
Highlights
-- Stage Two 2,200m (74 holes) diamond drilling program underway in Uganda.
-- Designed to define a +10Mt TGC Measured and Indicated Resource from existing 16.3Mt.
-- Fully funded through existing cash resources.
-- Previously drilled high grade zones in Northern Syncline and
Camp Lode to be included in new upgraded resource.
-- Additional in-fill drilling to provide basis for mine
planning, delivery of geotechnical and other information, for
inclusion in Pre-Feasibility Study (PFS).
Blencowe Resources Plc ("Blencowe Resources" or the "Company")
(LSE: BRES) is pleased to announce the commencement of the Stage
Two drilling program at Orom-Cross, designed to in-fill the
recently announced JORC Resource and upgrade substantial tonnes
into the Indicated and Measured categories. This additional program
will progress Orom-Cross along its development path towards first
production, and will be executed using the Company's in-country
technical partners, ADT Drilling and Minrom Consulting. Additional
resources will also be targeted in the current programme, with
drilling also focusing on proven high grade areas, as yet not
included in the maiden JORC Resource.
On 13 April 2021, Blencowe announced its maiden JORC Resource
estimate for Orom-Cross, less than one year after acquiring the
Project. The commencement of Stage Two, so soon after the highly
successful maiden drilling programme, underlines the Company's
focus to add significant value efficiently and cost-effectively
within this development phase. The drilling campaign will progress
in parallel with the ongoing metallurgical test work, with leading
graphite expert SGS Lakeside in Toronto/Canada, the results of
which are expected later this quarter. The drilling program will
take approximately 2-3 months to complete, with a similar amount of
time thereafter to prepare samples, complete all assaying and
provide a JORC Resource update. The Company will provide updates
during the drilling campaign as appropriate.
The maiden JORC Resource delineated a 16.3Mt TGC resource at
Orom-Cross, almost twice the size as the originally targeted. 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 Stage One drilling program also located higher grade
graphite in the Camp Lode, which was only partially explored. Stage
Two will therefore also target parts of the Camp Lode to bring it
into the overall JORC Resource for the first time, which is likely
to have a material positive impact on both grade and tonnes.
Cameron Pearce, Executive Chairman commented;
"I am delighted to announce the commencement of our fully funded
Stage 2 drilling program, which we expect will add further material
value to the Orom-Cross graphite project in Uganda. We are moving
quickly towards the feasibility studies phase and this current
drill program is designed not only to expand the resource's size,
grade and classification, but also ensure that all necessary
geological and mining information required for those studies is
subsequently available. We have already come a long way in a short
period of time at Orom-Cross. We look forward to the results of
this next phase of drilling and the results of the ongoing
metallurgical studies with great optimism.
"We remain firm believers that the battery metals market is only
just beginning its massive growth cycle over the next decade. We
believe this once-in-a-generation transformation will continue to
expand exponentially into the future. Benchmark Minerals
Intelligence recently announced that over two hundred lithium-ion
battery Megafactories are now in the pipeline worldwide, a
significant growth from just seventy factories three years ago.
These represent millions of tonnes of future graphite demand in the
years ahead and support the positive outlook for the graphite
market.
Accordingly, we are resolute in our position that Orom-Cross
offers significant value and the ability to play a substantial role
in helping to ease the significant forecast deficit of graphite in
the future. We have already been issued a 21-year mining license at
Orom-Cross, which not only considerably de-risks our work ahead,
but also should help the Company advance the asset into production
in an expeditious manner.
I look forward to updating the market on the results of the
metallurgical test work later this quarter."
For further information please contact:
Blencowe Resources Plc
Sam Quinn www.blencoweresourcesplc.com
Investor Relations Tel: +44 (0)1624 681 250
Sasha Sethi info@lionsheadconsultants.com
Tel: +44 (0)7891 677 441
sasha@flowscomm.com
Brandon Hill Capital Limited Tel: +44 (0)20 3463 5000
Jonathan Evans jonathan.evans@brandonhillcapital.com
First Equity Limited Tel: +44(0)20 7330 1883
Jason Robertson jasonrobertson@firstequitylimited.com
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.
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