Blencowe Resources delivers further ‘excellent’ assay results at Orom-Cross
The results from the program (Figure 1) will underpin Blencowe’s maiden JORC (2012) Standard Mineral Resource Estimate and Reserve Determination scheduled for release this month. This will then underpin a Pre-Feasibility study which is currently scheduled for 2H21.
The results, which come from the weathered, close-to or at-surface zone of the Eastern Syncline Lode deposit, have highlighted the quality of the Project’s mineralisation.
The results identified substantial graphite at shallow depths which Blencowe said underlines the Project’s ability to be a low-cost producer. Higher grade near-surface intercepts also confirm the geological interpretations as well as grade continuity in the main lodes.
Figure 1: Map of the Drilling Programme
(Source: Blencowe Resources)
The diamond drill program on the Eastern Syncline Lode Deposit was based on a 50 metre by 12.5 metre grid. The program was designed to outline the main production area for an initial 10-year mining phase to be incorporated into a Pre- Feasibility study in 2H21.
Similar to the holes in the previously announced Camp Lode, the holes drilled in the Eastern Syncline Lode have returned visible grade graphite over the majority of 30m of intersection, with weathering extending to within 5m of the base of the holes in most cases.
Based on the received samples to date, the Company outlined the expectation of average grades of 6-8% TGC in the Eastern Syncline Lode which is ‘consistent with earlier modelling.’
Blencowe outlined that the identification of higher-grade zones within the Eastern Syncline Lode ‘may present the Company with additional high-grade ore for the initial mining phase which could have significant advantages to both mining costs and product quality.’
‘Subsequent logging by company geologists has also identified zones of large to jumbo flakes in the core, which is very positive in lieu of producing an end-concentrate of high quality that can attract higher prices,’ the Company highlighted to investors.
The Company said it has received all the sample assays for the diamond drill hole program and geological block models have been developed for both the Eastern Syncline and Camp Lode deposits. Meanwhile, it is now proceeding to finalise the Mineral Resource Estimate.
“Our drilling program has so far confirmed everything it was meant to in terms of location of graphite, shallow depths of the ore body, significant grade and evidence of larger flake sizes. These factors all combine to underline our belief that Orom-Cross is emerging as an outstanding graphite project,” commented Executive Chairman, Cameron Pearce.
He said, “We are within the early stages of a once-in-a-lifetime extraordinary passage where an entire (auto) industry begins to shift from fossil fuel energy to electrification, and this will require a material amount of graphite to support the lithium-ion batteries used to power electric vehicles (EVs).”
“Graphite makes approximately half the weight of each Li-ion battery, some 50kgs on average per battery, and analysts are all predicting substantial demand for high quality graphite. Orom-Cross is fast shaping up to be a robust graphite project in terms of size, scale, quality and location to meet the future supply requirements of graphite,” he added.
Shares in Blencowe have risen by nearly 10% since delivering ‘outstanding’ high grade graphite results from the Camp Lode deposit at the Orom-Cross graphite project which confirmed the quality of the Project’s mineralisation and its ability to be a low-cost producer.
These former results will join today’s additional “excellent” high-grade assay results to be incorporated in the broader maiden JORC Mineral Resource and Reserve Estimate. The results further highlight to investors the quality of the project's mineralisation and underpins Blencower’s aim to become a low-cost producer for the rapidly expanding Graphite markets.
Reasons to Follow BRES
Blencowe is a mineral resources company focused on fast-tracking its 100% owned Orom Cross Jumbo Graphite Project in Uganda to production. Orom Cross is an advanced exploration stage project which was awarded a 21-year mining licence in October 2019.
The development company which is currently focused on bringing the Orom-Cross graphite project into production, completed its 69-hole (1,950m) diamond drill programme into the Eastern Limb Lode and the High-Grade Camp Lode in September 2020.
The size and scale from exploration work that has already been completed in the licence area has clearly demonstrated that Orom Cross has the potential ‘to become one of the largest graphite projects in the world based on both size and the quality of the end product.’
Blencowe is fast tracking the project through to defining a maiden JORC-compliant resource, completing further metallurgical test work with a plan to deliver a Preliminary Economic Assessment (PEA) in Q1 2021 followed shortly after by a Pre- Feasibility Study (PFS).
Align Research describes Graphite as ‘an important battery metal’ since it represents around 50% of Li-ion batteries by mass, which uses the smaller sized flakes. In recent years there have been some racy growth rates suggested for graphite demand for lithium ion batteries.
Meanwhile, the group said demand for electric vehicles (EV) is rising on the back of green legislation being adopted by the UK, India, Germany, France, Norway and China, which is expected to lead to an increasing demand for Li-ion batteries and in turn for graphite.
Another integral factor is that Uganda’s economy is believed to hold ‘great potential’ with this whole region of East Africa viewed as a key African growth platform by the World Bank, hosting significant natural resources including copper, cobalt, gold, nickel and platinum.
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