Date: 15 April
2024
Blencowe
Resources Plc
("Blencowe" or the "Company")
Bulk Sample Processing
underway at Pilot Plant Facility in China
Progression towards Product
Qualification and Offtake Contracts
Blencowe Resources Plc (LSE: BRES) is pleased
to report significant progress on the Definitive Feasibility Study
("DFS") works for the 100%-owned Orom-Cross graphite project in
Uganda including commencement of the 600 tonne bulk sample test
work at the Jilin Huiyang New Material Technology Company Ltd
("Jiliin") facility in China.
Highlights:
· Bulk Sample Processing
- commencement of the 600-tonne commercial scale processing
at Jilin in China marks a significant step forward for Orom-Cross
DFS.
· Off-take Agreements
Progress - senior management and potential
offtake partners to meet during April 2024 to advance off-take
discussions following strong interest in the large-scale test work,
samples delivered to date, and Orom-Cross products across the
board.
· Final Sample Delivery
- both 96% concentrate and 99.95% spheronised purified
graphite ("SPG") provided from this latest bulk sample testing are
expected to be delivered in Q2 2024 to potential off-taker parties
in sufficient quantity for review, leading to product qualification
and ultimately contracts.
Following the delivery of the 600 tonne bulk
sample materials to China, processing has commenced at the Jilin
facility. This same facility previously
conducted successful bulk metallurgical test work for
Blencowe on the 100-tonne Orom-Cross sample in 2023.
Blencowe plans to utilise this product to
generate large volumes of both 96% concentrate and 99.95% uncoated
SPG product for final qualification with potential off-take
partners. This process aims to maintain the same consistently
high quality as previously delivered via this commercial-scale
production process in 2023.
Senior management will visit both China and
South Korea over the next few weeks to continue discussions on
offtake agreements. Strong interest has been shown to date
and Blencowe is confident that this will continue with the ongoing
large-scale test work.
Cameron Pearce, Executive Chairman
commented;
"This latest 600 tonne bulk sample testing is a critical part
of our DFS. We aim to demonstrate that end products maintain the
same high quality and purity in commercial scale processing that
have already been achieved in all previous testing to date.
The 100 tonne testing last year confirmed this quality maintains to
scale and we are confident we can achieve similar results from this
latest 600 tonne testing. Thereafter we will have sufficient
quantity of 99.95% SPG to provide for testing with tier one
offtakers for product qualification."
Mr Pearce added "We are making significant progress across
all DFS objectives. Orom-Cross is a world class graphite
project with unique characteristics, and its potential is becoming increasingly
evident as we deliver each milestone."
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.