Research Note on Orom-Cross Graphite Project
02 Mar 2023
Blencowe Resources Plc
(“Blencowe” or the “Company“)
Blencowe Resources Plc (LSE: BRES) is pleased to note the publication of a new research Initiation report by Resolve Research Limited (“Resolve”) on the Company’s Orom-Cross graphite project, located in Uganda.
The Resolve note, titled “Blencowe Resources – Walking with Elephants” states that “Orom-Cross is fast becoming a Tier 1 project at an inflection point for graphite demand” and applies a “highly conservative discounted cash flow analysis using a 12% discount rate” to its valuation model.
The report (compiled using publicly available information) and which applies a 23p target price with a “Strong Buy stance” is available on the Company’s website at the following link:
https://blencoweresourcesplc.com/wp-content/uploads/2023/03/Blencowe-Resources-Initiation-Report.pdf
For further information, please contact:
Blencowe Resources Sam Quinn | Tel: +44 (0) 1624 681 250 |
Investor Enquiries Sasha Sethi | Tel: +44 (0) 7891 677 441 |
Tavira Securities Limited Jonathan Evans | Tel: +44 (0)20 7100 5100 |
First Equity Limited Jason Robertson | Tel: +44(0)20 7330 1833 |
Twitter https://twitter.com/BlencoweRes
LinkedIn https://www.linkedin.com/company/blencowe-resources/
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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 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 and Blencowe completed a successful Pre-Feasibility Study in 2022. The Company has now moved 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, with only a small percentage of the overall deposit drilled to date. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.