Blencowe Resources Plc (LSE: BRES) is pleased to provide the final assay results from shallow drilling at the Company’s new Beehive deposit, one of two substantial new deposits (together with Iyan) recently delineated at the Company’s Orom-Cross Graphite Project in Uganda.  

As part of the Stage 7 drilling programme, the Company completed 110 shallow drill holes at Beehive, to test the continuity, thickness and near-surface extent of graphite mineralisation. This announcement reports the final batch of assay results received (40 holes), positioned predominately to the south of the target area, completing the shallow assay dataset for Stage 7 ahead of the Company’s next major resource milestones.  This will include a maiden JORC Mineral Resource for Beehive and an updated JORC Mineral Resource for the wider Orom-Cross system.

The shallow Beehive programme was designed to define near-surface, bulk minable graphite mineralisation, with holes drilled to a planned depth of approximately 30 metres.  Importantly, the majority of reported holes intersected graphite mineralisation from near surface to end-of-hole, with many holes ending in mineralisation, supporting potential for continuation below the current shallow drilling depth.  This interpretation remains consistent with the previously reported deeper drilling at Beehive, which demonstrated mineralisation continuing to approximately 100 metres depth.

The Company notes that, while this shallow programme was not intended to close out the southern extent of the deposit, results continue to support potential extensions within the broader target area, particularly toward the western end of the deposit.

With assaying now complete, the Company’s independent geological consultants have progressed a preliminary mineralisation model highlighting potential extents of the deposit in the hinge area at Beehive.  This is in addition to advanced modelling for the upcoming maiden JORC for Beehive where a material update is expected.

Beehive Drilling Highlights (final 40 shallow holes)

·      Final assays before JORC: this batch completes the remaining shallow results ahead of a maiden Beehive JORC Resource and a wider Orom-Cross JORC Resource upgrade

·      Thick near-surface mineralisation: multiple holes deliver long intervals from surface within the near-surface envelope

·      High-grade zones within bulk mineralisation: strong grades continue to occur within the broader mineralised package

·    Average grades are consistent with DFS assumptions, with multiple higher-grade zones within bulk mineralisation.

·    Step-out upside: drilling indicates potential extensions to the west and south of the target area.

·    Selected significant intercepts include:

o  BHDD-L327: 0-30.8m | 22.23m true width (TW) @ 7.73% total graphitic carbon (TGC)

o  BHDD-L331: 3.68-31.0m | 20.85m TW @ 7.67% TGC

o  BHDD-L335: 2.0-31.0m | 22.64m TW @ 6.30% TGC

o  BHDD-L402: 9.04-31.4m | 18.88m TW @ 6.67% TGC

o  BHDD-L404: 15.25-31.5m | 11.88m TW @ 6.68% TGC

o  High-grade zone: BHDD-L310: 0-3.3m | 2.9m TW @ 10.30% TGC

o  BHDD-L307: 0.78-18.32m | 13.79m TW @ 6.89% TGC

o  BHDD-L403: 0-9.0m | 6.94m TW @ 7.68% TGC

(TGC refers to Total Graphitic Carbon. TW = true width.)

Interpretation and Next Steps

These results continue to support the interpretation of a thick graphite system at shallow depths, while previously reported deeper drilling demonstrates mineralisation continuing to approximately 100 metres depth. Together, the shallow and deep datasets provide the basis to define the near-surface component and the wider vertical growth runway at Beehive.

Beehive has been defined over approximately 1,200 metres of strike and 480 metres of width to date and remains open for step-out extensions to the north and west (particularly toward the western end of the deposit), and to the south; this is in addition to depth continuity below the current shallow ~30m drilling horizon.

Modelling is now at an advanced stage and the Company expects to issue a maiden Beehive JORC Mineral Resource shortly (subject to finalisation of the model and reporting). Based on the thickness, continuity and grade profile demonstrated across the programme, together with the defined footprint of the deposit to date, the Company believes Beehive has the potential to represent a material addition to the Orom-Cross resource inventory.  The Company will also provide an updated total Orom-Cross JORC Mineral Resource at the same time.

Blencowe Resources Executive Chairman, Cameron Pearce commented:

“Beehive continues to deliver thick mineralisation from surface with strong continuity and higher-grade zones within the broader envelope. Standout results in this batch include BHDD-L327: 22.23m TW @ 7.73% TGC, BHDD-L331: 20.85m TW @ 7.67% TGC and BHDD-L402: 18.88m TW @ 6.67% TGC, alongside BHDD-L310: 2.9m TW @ 10.30% TGC.  These all have long intersections of shallow high grade graphite which support low cost mining.  Through extensive metallurgical testing via experts worldwide we have already proven the high quality of Orom-Cross graphite as both concentrates and purified products.  Scale and quality together are very valuable.

With mineralisation previously demonstrated to around 100 metres depth and the deposit open for step-outs to the north and west and to the south, we believe Beehive has the potential to be a material addition to Orom-Cross, subject to JORC reporting. Modelling is now well advanced and we expect to issue a maiden Beehive JORC Mineral Resource shortly, which will also provide an updated Orom-Cross JORC Resource. We continue to progress strategic and funding discussions in parallel, with offtake interest remaining strong.”

Beehive Deposit – Preliminary Mineralisation Model

.

Beehive Deposit – Key Drill Results

Figures 1-2: Beehive Deposit drill sections showing thick, continuous graphite mineralisation remaining open at depth.