Name of the Project
Orom-Cross graphite project.

Location
Uganda.

Project Owner/s
Blencowe Resources.

Project Description
Orom-Cross is a large, shallow openpit deposit with an estimated overall resource of between two-billion and three-billion tonnes of graphite. A total of 16.3-million tonnes have been drilled to Joint Ore Resource standard.

A preliminary economic assessment (PEA) envisages an openpit, owner-operated mining operation.

The project will use existing indicated and inferred resources as drilled to Joint Ore Reserves Committee resource standards, delivering an estimated 1.4-million tonnes a year of ore for processing through the plant over a 13-year mine life. The strip ratio is 1: 1.1, which is low. 

The plant will contain separate circuits that will, ultimately, deliver an average of 75 000 t/y, comprising four separate end-products – jumbo, large, medium and small flake-size concentrates.

Potential Job Creation
A workforce of about 45 will be on site at any time, some of whom will be a fly-in, fly-out contingent from international locations.

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8% discount rate, of $317-million and an internal rate of return of 49%, with a payback on capital of four years.

Capital Expenditure
The project has an initial capital cost of $80-million, inclusive of 15% contingency.

Planned Start/End Date
Not stated.

Latest Developments
Blencowe is awaiting the revised Joint Ore Reserves Committee- (Jorc-) compliant resource estimate for Orom-Cross, based on the extensive 2021 infill drilling programme. Blencowe’s geological partner Minrom will provide this update in due course. 

This Jorc resource is expected to add to the 16.3-million tonnes at 6% total graphitic carbon that was announced to the market in 2021, and provide additional tonnes that can be used for a much longer mine life than previously indicated in the PEA. In parallel, work is being completed on Phase 3 metallurgical testwork to refine the end-products that will be delivered as concentrate from Orom-Cross: these results are expected shortly. 

Phase 2 metallurgical testwork has indicated a high-quality array of end-products that should be sought after in the market, and Phase 3 is expected to further highlight this by confirming the marketable characteristics of the different mesh-size products and producing concentrates for consumer testing prior to pilot plant production.

One of the key additions within the PFS (from the 2021 PEA) is the expectation that Blencowe will deliver a pilot plant by 2023 to produce small quantities of these same end-products to prequalify sales to end-users. This is considered a necessary and integral step to sell higher quantities of graphite concentrate from 2025, when the main plant is expected to be commissioned.

Blencowe is also investigating all options to deliver green graphite products through a project that leans heavily on renewable-energy and other sustainable components. This is considered as a very important objective within the PFS and the strategy going forward.

All other areas within the PFS are going to plan, with work under way on all key areas, including infrastructure, energy, roads, water, tailings, logistics, sales and marketing, plus plant and camp design.

Key Contracts, Suppliers and Consultants
Battery Limits (PFS).

Contact Details for Project Information
Blencowe Resources, tel +44 1624 681 250 or email info@blencoweresourcesplc.com.