Orom-Cross Graphite Project

21 year Mining License awarded in 2019

JORC Standard Mineral Resource

COMPLETED

This resource is from approx. 2% of the total deposit as drilled out to date, which presents considerable upside potential ahead

 

 

Phase 2 metallurgical test work

COMPLETED

  • 95-97% TGC (total graphite content) as concentrate
  • In situ average grade 6% but pockets of higher grade (>10%)
  • Low impurities (thorium, vanadium, ash, sulphur)
  • High recoveries
  • High proportion Jumbo/XL/Large flakes within concentrate

 

 

 

Pre-Feasibility Study completed in July 2022

  • US$482M NPV8 (post-tax)
  • 49% IRR8 (post-tax)
  • 14 Years Initial Stage Life of Mine (from ~2% of deposit drilled to date)
  • US$62M Initial Capital Required
  • 101,000tpa Average Production of 97% Concentrate over Life of Mine
  • US$100M Average EBITDA pa LOM (US$1.398Bn total LOM)
  • US$499/t Total Operating Cost (FOB port)
  • US$1,307/t Weighted Average Selling Price
  • US$1.1Bn Free Cash returned over Initial 14 years Life of Mine

Definitive Feasibility Study underway

  • Target completion mid-2025.
  • Analysis of full project to DFS standard with sign off from experienced graphite technical engineering firm.
  • Bulk sample testing in China sample testing is now successfully completed.
  • Further testing to 99.95% LOI products (SPG & Expandables) is now successfully completed.
  • EPC contractor.
  • Project funding.
  • Offtake partners.

Blencowe acquired the Orom-Cross Graphite Project in April 2020 via the acquisition of 100% owned Ugandan subsidiary (Consolidated Resources Uganda). The Project lies within the Orom District, of northern Uganda. The Project tenements encompass an area of approximately 520,000 hectares stretching from Latitude 3°18’40’ to 3°30’40’ N and from Longitude 33°31’50’ to 33°45’40’ E. Access to site is approximately 28km via the Kidepo-Gulu road from Orom consisting of unsealed gravel roads.

Work to date has outlined graphite mineralisation at the Project associated with deformed Neoproterozoic graphitic gneisses and schists. The Project’s Exploration Target is centred at Latitude 3º 23’ 30’ N and Longitude 33º 37‘00’ E within Mining Lease (ML1959) and a previous Exploration Licence which is now under application for a Retention Licence (RL1025).

Prior to Blencowe acquiring Orom-Cross in 2021, Consolidated Resources Uganda had previously undertaken the following exploration activities:

  • field mapping;
  • geophysical surveys (VTEM and Aeromagnetic);
  • geological logging and geochemical analyses of drill core samples;
  • geological logging and geochemical analyses of trench samples;
  • metallurgical test work of composites; and
  • determination of Exploration Target ranges.

These activities all highlighted a considerable graphite deposit stretching over some 19kms length and 2 kms width, shallow in nature and containing up to 75% as jumbo-large flake size in situ.

Blencowe acquired the Orom-Cross Graphite Project in April 2020 via the acquisition of 100% owned Ugandan subsidiary (Consolidated Resources Uganda). The Project lies within the Orom District, of northern Uganda. The Project tenements encompass an area of approximately 520,000 hectares stretching from Latitude 3°18’40’ to 3°30’40’ N and from Longitude 33°31’50’ to 33°45’40’ E. Access to site is approximately 28km via the Kidepo-Gulu road from Orom consisting of unsealed gravel roads.

Work to date has outlined graphite mineralisation at the Project associated with deformed Neoproterozoic graphitic gneisses and schists. The Project’s Exploration Target is centred at Latitude 3º 23’ 30’ N and Longitude 33º 37‘00’ E within Mining Lease (ML1959) and a previous Exploration Licence which is now under application for a Retention Licence (RL1025).

Prior to Blencowe acquiring Orom-Cross in 2021, Consolidated Resources Uganda had previously undertaken the following exploration activities:

  • field mapping;
  • geophysical surveys (VTEM and Aeromagnetic);
  • geological logging and geochemical analyses of drill core samples;
  • geological logging and geochemical analyses of trench samples;
  • metallurgical test work of composites; and
  • determination of Exploration Target ranges.

These activities all highlighted a considerable graphite deposit stretching over some 19kms length and 2 kms width, shallow in nature and containing up to 75% as jumbo-large flake size in situ.

The Project is located approximately 6 km east (in a straight line) of the town of Orom and 75 km northeast of the town of Kitgum in northern Uganda. The nearest large settlement to the Project is the village of Orom, located in Chua East Country.

Since acquiring Orom-Cross Company has defined and delivered a substantial a work program that now includes:

  • an initial diamond drilling programme of 2,200m to deliver a maiden JORC Code Inferred Resource
  • a second in-fill diamond drill programme of 2,000m to deliver a substantial JORC 2012 Code Standard Indicated Resource;
  • substantial metallurgical test work to demonstrate upgrading mined graphite to a high grade concentrate for various end products that can be delivered to market
  • 600 tonne bulk sample test program successfully completed through to 96% concentrate and 99.95% SPG (spheronised purified graphite) which completes the pre-qualification process for Orom-Cross
  • Samples have been sent to various tier one offtakers for assessment and negotiations have commenced that will lead to sale agreements
  • Further 6000m drilling program planned as part of DFS targeting substantial increments to both JORC Resources and Reserves
  • completion of a Pre-Feasibility Study on initial 14 years life of mine, including all mine operations, processing, logistics and sales; and
  • commencement of Definitive Feasibility Study with targeted completion mid-2025.

The development work above will underpin decision to mine for the Orom-Cross project (1H 2025) and provide funding options for building all plant and infrastructure (2025) with targeted first production from 2026.

The Project is located approximately 6 km east (in a straight line) of the town of Orom and 75 km northeast of the town of Kitgum in northern Uganda. The nearest large settlement to the Project is the village of Orom, located in Chua East Country.

Since acquiring Orom-Cross Company has defined and delivered a substantial a work program that now includes:

  • an initial diamond drilling programme of 2,200m to deliver a maiden JORC Code Inferred Resource
  • a second in-fill diamond drill programme of 2,000m to deliver a substantial JORC 2012 Code Standard Indicated Resource;
  • substantial metallurgical test work to demonstrate upgrading mined graphite to a high grade concentrate for various end products that can be delivered to market
  • 600 tonne bulk sample test program successfully completed through to 96% concentrate and 99.95% SPG (spheronised purified graphite) which completes the pre-qualification process for Orom-Cross
  • Samples have been sent to various tier one offtakers for assessment and negotiations have commenced that will lead to sale agreements
  • Further 6000m drilling program planned as part of DFS targeting substantial increments to both JORC Resources and Reserves
  • completion of a Pre-Feasibility Study on initial 14 years life of mine, including all mine operations, processing, logistics and sales; and
  • commencement of Definitive Feasibility Study with targeted completion mid-2025.

The development work above will underpin decision to mine for the Orom-Cross project (1H 2025) and provide funding options for building all plant and infrastructure (2025) with targeted first production from 2026.

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CONTACT US

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