Last checked at 25 Jan 2024 07:00
Date: 25 January 2024 Blencowe Resources Plc
("Blencowe" or the "Company")
Second tranche US$1 million Grant Funding received from US International Development Finance Corporation
Funds paid to Blencowe for Orom-Cross Project Definitive Feasibility Costs
Blencowe Resources Plc ("Blencowe" or the "Company") (LSE: BRES) is pleased to announce it has received its second tranche US$1 million funding payment from the United States International Development Finance Corporation ("DFC"). This represents a further 20% of the full US$5 million DFC grant to be utilised for Orom-Cross Definitive Feasibility Study ("DFS") costs, with US$2 million received in total to date since this agreement was signed in 2023.
This tranche was disbursed on the completion of several key goals as delivered within the DFS, namely;
· Tailings processing and disposal options study completed.
· Spheronised purified graphite ("SPG") test work completed (both coated and uncoated products).
· Processing plant flowsheet finalised through 100 tonne pilot plant testing.
· Further 600 tonnes bulk sample mined and ready for export to China for stage two commercial scale testing.
Blencowe can report that all of the above tasks were successfully completed with results reported to market in 4Q 2023. The SPG test work completed by a leading US graphite technical expert was particularly noteworthy as results indicate Orom-Cross graphite can be purified up to a 99.995% product, which is rare and puts the graphite quality from Orom-Cross at the very highest level.
This is of great significance when considering niche markets, product pricing and offtake relationships.
The Company is well on its way to completing the milestones as required for disbursement of the third DFC tranche of grant funds, which will deliver another US$1 million for additional DFS work.
Additionally the Company is continuing to see strong levels of serious interest from a range of high quality offtake groups and strategic parties.
Cameron Pearce, Executive Chairman commented;
"Following successful completion of key feasibility study milestones this latest tranche of grant funding we have received from DFC is valuable to Blencowe and we extend our sincere appreciation to the DFC for their ongoing support. The DFC remains a critical strategic partner of Blencowe with discussions underway as to potential funding support from the DFC for the full Orom-Cross graphite project implementation ahead."
Mr Pearce added, "I would also like to extend our thanks to our entire operational team both in-country and beyond for their steadfast commitment to achieving objectives and driving progress with the Orom-Cross feasibility study. Orom-Cross is a unique graphite project with its rare suite of key attributes amongst its peers. The DFC identified these outstanding characteristics in their due diligence process when assessing Orom-Cross and investors should note that other strategic parties are also taking notice, which provides a strong platform for activities in 2024."
For further information please contact:
Blencowe Resources Plc Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250 info@blencoweresourcesplc.com
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Investor Relations Sasha Sethi | Tel: +44 (0) 7891 677 441 sasha@flowcomms.com
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Tavira Financial Jonathan Evans | Tel: +44 (0)20 3192 1733 jonathan.evans@tavira.group
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First Equity Limited Jason Robertson | Tel: +44(0)20 7330 1833 jasonrobertson@firstequitylimited.com
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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.