4 September 2023                     

Blencowe Resources Plc

Completion of 100t Bulk Sample underlines high quality graphite product from Orom-Cross

Highlights:

·    Blencowe has now successfully completed critical pre-qualification metallurgical test work with 100t bulk sample works concluded in China.

·    Commercial scale results continue to confirm that a high-grade, low impurity concentrate (95-97% TGC) can be delivered from Orom-Cross graphite project in Uganda.

·    Increased coarse flake percentage of final mix, together with higher recoveries, will increment the overall weighted average selling price of the Orom-Cross basket of end products.

·    Blencowe now has a considerably larger volume of concentrate product to send to potential end users for further pre-qualification testing.

·    Positive feedback received from end users on Blencowe's high-quality 95-97% TGC product with significant interest from established Chinese industry groups in progressing offtake arrangements.

Blencowe Resources Plc ("Blencowe" or the "Company"), is pleased to announce that additional metallurgical test work on its Orom-Cross graphite project in Uganda has now been completed by leading graphite technical specialist laboratory, Jilin New Technology ("Jilin") based at Yanji in Northern China, following our recent update on 14 August 2023.

This metallurgical test work is critical to understanding the commercial scale process plant components, the quality of the end-product that Orom-Cross can deliver as a high-grade graphite concentrate as well as the flake sizing yield, and the operability of a process plant at Orom-Cross.  The 100t bulk sample also provides significantly greater quantum of end product for end user testing which is critical for the Definitive Feasibility Study.

Executive Chairman Cameron Pearce commented:

"We are very pleased with these results from the 100 tonne bulk sample program.  We utilized the services of a very experienced graphite plant operator at Jilin for the pilot testing as we believed this party's extensive knowledge over decades in the industry would deliver superior net concentrate results, and I delighted to say they have delivered us a great outcome."

Mr Pearce added: "We now have proof we can deliver a very high quality graphite concentrate from Orom-Cross on a commercial scale, which is a key DFS milestone.  In parallel we are testing the upgrade of this concentrate to uncoated battery-ready 99.95% SPG (spheronised, purified graphite) and expandables as the next important step to significantly value-add our end products. 

Finally, we also now have larger quantities of concentrate as bulk samples to deliver to potential buyers and engage with strategic groups. These groups can now proceed to test the concentrate and determine their level of interest for binding offtake agreements which will be crucial for our project financing. We believe these results will be attractive to a range of graphite consumers and that Orom-Cross can help deliver the shortfall of graphite expected in the market in the foreseeable future."

Background to the Test Work

Blencowe commissioned Jilin New Technology in partnership with Wuhan University to undertake metallurgical test work on a 100t bulk sample which covered material from both the Northern Syncline and Camp Lode areas within Orom-Cross. The pilot plant program was designed to deliver the following objectives:

1.    Confirm the commercial scale viability of processing the Orom-Cross ores.

2.    Confirm a 95-97% TGC (Total Graphite Content) pure concentrate is possible with low impurities (in particular thorium and vanadium).

3.    Confirm the laboratory testing models.

4.    Confirm the liberation process in order to maintain a majority of Jumbo/XL/Large flakes within the concentrate.

5.    Confirm the process flow diagram for the pilot plant design as part of the Definitive Feasibility Study.

6.    Deliver significant quantum of bulk concentrate to allow Blencowe to initiate discussions with potential off-take partners.

Blencowe is pleased to announce that the pilot plant process has successfully delivered on all of the above objectives.

The optimisation of the process (on the basis of the previous laboratory testing) has been very successful with the pilot plant methodology further improved and able to deliver a shorter overall processing of the ore, whilst improving the metrics of the concentrate delivered.

A shorter processing cycle has the benefits of lower capital expenditure and lower operating costs, both of which will enhance the overall Orom-Cross project financials.

The streamlined processing design has also realised increased recoveries of the more valuable larger +50mesh flake from 6.5% to 9.5% yield (within overall basket of end products), whilst increasing overall large flake yield by approximately 2% and increasing overall concentrate recoveries to over 94%.  Again, this will add further value to the project financials.

The additional metallurgical test work to date shows a robust flowsheet capable of repeatable metallurgy for a wide range of feed samples from Orom-Cross, which will now be used directly for reference in the actual concentrator engineering design for the Definitive Feasibility Study.

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Background

Orom-Cross Graphite Project

Orom-Cross is a potential world class graphite project both by size and end-product quality, with an estimated 2-3 billion tonnes deposit and a high component of more valuable larger 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 and Blencowe has moved through Pre-Feasibility and into the Definitive Feasibility Study phase as it drives towards first production.

Orom-Cross presents as a large, shallow open-pitable deposit, with a maiden JORC Indicated & Inferred Mineral Resource deposit of 24.5Mt @ 6.0% Total Graphite Content. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.