Name of the Project
Orom-Cross graphite project.

Location
Uganda.

Project Owner/s
Graphite, nickel and copper developer Blencowe Resources.

Project Description
A prefeasibility study (PFS) has highlighted an exceptional long-life project that delivers considerable returns over an initial life-of-mine of 14 years.

An estimated 600 000 t/y of ore will be mined from the commissioning date and this will increase to 2.4-million tonnes a year by the time the project is fully ramped up in Year 10.

Mining will be free-dig, with no drill-and-blast required. Initial ore will come from saprolite (clay) at an average depth of about 15 m to 20 m. Both deposits (Northern syncline and Camp lode) identified in the drilling programmes will be mined and a composite blend of both will be fed into the processing plant that will be built on site.

An initial 36 000 t/y of end-product will be delivered from the plant as concentrates, which will increase in two additional stages to 147 000 t/y once the mine is fully ramped up. 

Further resources, higher production volumes and an extended mine life can all be obtained at any stage by drilling additional ready-targets. This, however, is not currently considered a priority.

The processing flowsheet comprises a flash and rougher flotation stage, followed by a primary cleaning circuit with a polishing mill and three stages of cleaner flotation. The intermediate concentrate is classified and then further upgraded in secondary cleaning circuits using stirred media mills, followed by cleaner flotation.

Orom-Cross will deliver at least five different end-products, characterised by size fractions of +50 mesh, + 80 mesh, +100 mesh, +150 mesh and -100 mesh. These products will have different markets and will be branded and packaged on site.

Initially, transport to port will be by road, but it is expected that a rail option might be available by 2025, further reducing logistics costs.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $482-million and an internal rate of return of 50%.

Capital Expenditure
The initial capital requirement has been lowered by 23%, to $62-million, since the preliminary economic assessment was announced in 2021. 

Planned Start/End Date
Blencowe will start the main operations from 2025 at an initial output of 36 000 t/y of end-product.

Latest Developments
Blencowe Resources has signed an agreement with the US International Development Finance Corporation (DFC) to provide $5-million in funding through a technical assistant grant for the definitive feasibility study (DFS) programme on the Orom-Cross project.

An upfront contribution of $1-million, or 20% of the full amount, will be paid immediately, with the remainder of payments to follow certain feasibility milestones being achieved.

DFC is geared to provide funding assistance for Orom-Cross as part of the US government's strategic drive to secure a reliable supply chain of critical minerals and metals within its wider $1-trillion renewables strategy under president Joe Biden.

As part of the agreement, DFC has a right of first refusal on commercial terms to arrange project financing.

The DFC partnership presents the opportunity for Blencowe to consider a larger-scale project with potentially greater returns with regard to the DFS, which will have a material impact on the overall project value ahead.

“To the best of our knowledge, there has been no other graphite project worldwide that has received a similar type of grant to date from the DFC. We believe that having DFC as a strategic project partner substantially derisks Orom-Cross and provides us with the means to deliver a world-class project from here,” executive chairperson Cameron Pearce has said.

The company is confident that it can deliver even greater value within the DFS, as project horizons can be expanded.

With the support of the DFC, Blencowe can address one of the major challenges and risks to any mining operation: the clear pathway to fund the project to production.

Key Contracts, Suppliers and Consultants
Battery Limits (PFS); IMO (technical testwork); and CPC Engineering (DFS).

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