KEY POINTS
- Orom-Cross is one of the world’s largest graphite deposits.
- Blencowe secured $5 million in funding for the DFS.
- A planned processing facility will deliver value-added graphite products.
Blencowe Resources, a London-listed emerging graphite miner, has provided updates to shareholders following a £1.6-million capital raise. The funds will support the completion of a definitive feasibility study (DFS) for its Orom-Cross graphite project in Uganda, targeted for completion by the second quarter of next year.
Orom-Cross: A globally significant graphite deposit
Orom-Cross contains two to three billion tonnes of graphite, mostly near-surface, making it one of the largest deposits globally. The high-value jumbo and large-flake graphite dominate the resource, with 24.5 million tonnes grading 6% of total carbon confirmed from just 2% of the deposit drilled so far. Blencowe owns 100% of the project, backed by a 21-year mining license and all necessary permits and agreements.
The Orom-Cross project has already secured a $5-million grant from the U.S. Development Finance Corporation to assist with DFS costs. Blencowe plans to fund the project through a combination of debt and equity, with most financing expected to come from debt. Discussions are ongoing with several institutions to finalize funding after the DFS.
According to Mining weekly, graphite demand is projected to triple by 2030 due to its irreplaceable role in lithium-ion batteries for renewable energy storage. Orom-Cross is positioned to meet this demand, with Blencowe stating that graphite is essential for energy transition technologies, including lithium-ion, sodium, and vanadium redox batteries.
Blencowe has conducted extensive geological exploration, completing over 6,000 meters of drilling in two phases, with additional drilling underway. Metallurgical testing confirms the high quality of Orom-Cross’s graphite, with bulk sample testing in China pre-qualifying the material for offtake agreements with original equipment manufacturers (OEMs).
Global energy transition boosts demand for critical minerals
The prefeasibility study highlights a low-cost, high-margin, and long-life operation, estimating a $482-million net present value over an initial 14-year mine life. The project benefits from existing infrastructure, including roads, rail, hydroelectric power, and communications, which significantly reduce capital costs.
Blencowe plans to establish a downstream processing facility in Uganda in partnership with a spherical purified graphite (SPG) producer. This joint venture aims to deliver 99.95% SPG, attracting OEMs eager to diversify supply chains away from China.
In September, Blencowe received accreditation from the Minerals Security Partnership, recognizing Orom-Cross’s potential in the global energy transition. This prestigious award underscores the project’s significance in reducing reliance on China for critical minerals.
Blencowe’s optimized DFS includes plans to further purify graphite beyond concentrate and expand reserves through additional drilling, reinforcing the project’s long-term value and positioning it as a leader in the graphite market.
