London-listed Blencowe Resources has increased its total resource by 50% to 24.5-million tonnes grading 6% total graphite content, which contains sufficient measured and indicated resources for the first 15 years of the life-of-mine at the Orom-Cross graphite project, in Uganda.
Particularly, the company has increased indicated and measured resources by 340% to 13.2-million tonnes, providing a higher level of accuracy and confidence in the deposits to be mined.
The company completed a comprehensive infill drilling programme in the second half of 2021 and the results have significantly increased the mineral resource potential, as well as confirmed the robustness of the two higher-grade zones within the main Northern Syncline deposit on the project.
The measured, indicated and inferred resources start from the surface outcrop to at least a depth of 30 m, and the orebody remains open below, representing future exploration potential.
The company says the quality of the Orom-Cross project’s mineralisation lends itself to low-cost production. “The nature of the orebody will enhance the commercial outcome for the early years of operations at the project by mining this higher-grade ore.”
Blencowe initially targeted a mineral resource of 20-million tonnes from Phase 6 of its infill drilling programme, with ten-million tonnes being in the measured and/or indicated categories. However, this expectation has been exceeded and will contribute to a positive prefeasibility study once published in mid-2022.
The company aims to produce its first graphite concentrates from a pilot plant by 2023, while full production from a main plant is expected from 2025.
PLACEMENT ANNOUNCEMENT
Blencowe also announced on April 11 a placing of 16-million new ordinary shares at 5p apiece, exclusively, with specialist mining investor RAB Capital.
This placement raises gross proceeds of ￡800 000 for the company.
RAB is receiving one warrant per two placing shares, exercisable at a price of 8p apiece valid for three years from admission, to which end eight-million warrants have been issued to RAB.
Coupled with its existing shareholding of 1.8-million shares, RAB now owns 10% of Blencowe’s enlarged share capital.
The shares will list on the LSE on April 19.
Blencowe will use the proceeds to enhance project development at Orom-Cross, as well as the Akelikongo nickel project, also in Uganda.
The Akelikongo project is currently undergoing airborne electromagnetic work.
RAB CEO Philip Richards commented that the Orom-Cross graphite project is clearly of significant quality and at global scale already.
It can play a material role in helping meet the expected supply deficit for graphite, he notes.
“While the Akelinkongo project is still at an early stage in its development, it also appears to carry significant promise,” he adds.
