REG - Blencowe Resources - 600 tonne Processing Graphite to Battery Ready SPG

Blencowe ResourcesAnnouncement

02/09/2024 07:00

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RNS Number : 4474C  Blencowe Resources PLC  02 September 2024

Date: 02 September
2024
 

Blencowe Resources Plc

("Blencowe" or the "Company")

 

600 tonne Commercial Scale Processing of Graphite Successfully Completed to
Final Battery-Ready SPG Product

Orom-Cross Project Advances on several Definitive Feasibility milestones

 

Blencowe Resources Plc (LSE: BRES) announces the successful completion of the
last internal stage of the graphite pre-qualification test program, being
upgrading of substantial quantity of small flake concentrate into battery
ready 99.95% uncoated SPG by leading SPG producer, Qingdao TaiDa Carbon
("TaiDa").

 

Definitive Feasibility Study Progress

Key DFS milestones now achieved, including:

·    Metallurgical testing: Completion of 600 tonne commercial scale test
work on Orom-Cross concentrate.

·    SPG Production: Large volume of battery-ready uncoated SPG
successfully produced by TaiDa and now sent for testing by potential tier one
Asian customers.

·    Water Borefield Completion: Essential water borefield at Orom-Cross
now completed.

·    Micronisation Testing: Successfully completed at AETC in Chicago
producing all five key product ranges.

·    ESIA Update: Updated Environmental and Social Impact Assessment
submitted for local authority approval.

·    ESG Update: Successful certification of Environmental and Social
Governance ("ESG"), policies and procedures.

 

SPG Product Samples Shipped - Final Step Toward Offtake Agreements

Blencowe has processed fine flake concentrate into commercial scale volumes of
high quality uncoated SPG (99.95% spheronised, purified graphite) via graphite
industry leader TaiDa, and commenced delivery of samples to potential tier one
customers in South Korea and Japan for their in-house testing. This is the
final step for qualification of Orom-Cross material for commercial use by
these potential customers and is the pathway toward securing future offtake
agreements. Samples are also being supplied to major Chinese battery
manufacturers.

Senior management are currently visiting the testing firms along with various
Asian OEMs to advance discussions towards offtake agreements.

 

Additional Value-Added Testing Completed

Blencowe has successfully concluded further testing with leading US graphite
expert American Energy Technologies ("AETC") in Chicago to further beneficiate
fines concentrate into a range of high value specialised micronised products.
These niche products, offering up to 10 times the value of basic fines
concentrate, can add significant additional value to Orom-Cross ahead and are
thus being integrated into the DFS plant design and overall production
strategy.  Samples will now be tested by potential offtakers as the next step
towards sale agreements.

 

Uganda Operations Update

Blencowe has submitted an updated ESIA to reflect the revised Orom-Cross
operation plan, enhancing content of environmental and social commitments to
align with guidelines from potential funding parties.

A water borefield at Orom-Cross has also been completed, ensuring sustainable
life-of-mine water supply for the project and local communities. The project
also included refurbishing bores and establishing water supplies for the local
school and clinic as part of Blencowe's social commitment.

Blencowe has also successfully achieved ESG accreditation through well-known
industry agency, Digbee ESG, for its current policies and planning on ESG.
This certification is a major step towards satisfying both the investment
community and industry expectations for sustainable and environmentally
responsible operations at Orom-Cross.

Significant progress continues within the DFS, including plant design, power
supply studies, and infrastructure development.

 

Cameron Pearce, Executive Chairman commented;

"We continue to make solid progress, including the completion of the 600-tonne
bulk sample metallurgical test work from source material to battery-ready
products. We aim to build on our initial offtake agreement already announced
(for 15,000tpa large flake concentrate) and gain further endorsement from
potential tier one consumers of SPG. Once we have assembled a range of
customers and offtake agreements, we have effectively de-risked the project
ahead of project financing and construction, therefore the next few months
will be highly value accretive for the Company.

 

 We expect this final external customer testing, including shipping product
within Asia, to take approximately one month to complete, and thereafter we
will be able to discuss offtake agreements with our senior management team
visiting various Asian parties regularly."

 

 

 

 

 

 

 

 

 

For further information please contact:

 

   Blencowe Resources Plc    www.blencoweresourcesplc.com

 Sam Quinn                   Tel: +44 (0)1624 681 250

                             info@blencoweresourcesplc.com (mailto:info@blencoweresourcesplc.com)

 Investor Relations          Tel: +44 (0) 7891 677 441

 Sasha Sethi                 sasha@flowcomms.com (mailto:sasha@flowcomms.com)

 Tavira Financial            Tel: +44 (0)20 3192 1733

 Jonathan Evans              jonathan.evans@tavira.group (mailto:jonathan.evans@tavira.group)

Twitter https://twitter.com/BlencoweRes (https://twitter.com/BlencoweRes)

LinkedIn https://www.linkedin.com/company/72382491/admin/
(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.

 

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