Blencowe Resources PLC (LSE:BRES) said it is working closely with the US agency DFC on preparing a definitive feasibility study (DFS) for its Orom-Cross graphite project in Uganda.
To date, US$3 million of grant funding has been received from DFC with Blencowe expecting a final US$2 million over the next six months for further work and ultimately completion of DFS.
“In addition, DFC is mandated to play a role as lead partner in a funding solution for Orom-Cross implementation ahead, and management is working closely with DFC to ensure that this will happen,” said a statement alongside its interim results.
At the request of a potential offtake partner, Blencowe said it recently mined a further 600-tonne bulk sample and sent it to China for testing.
“This latest sample will also be beneficiated beyond 96% concentrate to a 99.95% uncoated SPG (spheronised, purified graphite) which is very near to what is used in the lithium-ion battery as graphite content, said the statement.
“Ultimately Blencowe is seeking offtake contracts and this commercial scale test work is designed to provide the samples and the results to qualify Orom-Cross product for these contracts, which themselves form an integral part of the DFS.
Other work continues within Uganda, it said, on infrastructure, community relations, environmental updates and all other key aspects of the DFS. Blencowe added it is working towards end-2024 as the delivery date for the DFS subject to all necessary funding received to deliver as such.
Specialist technical work has also been underway in this period in the US, considering the beneficiation of Orom-Cross concentrates to various high-end products, up to 99.99% which is military grade.
“To date all work has been successful and provided evidence Orom-Cross has one of the most pure concentrates and upgraded products and this will bode well in future offtake discussions,” said the statement.
Results for the half year to end March 2024 showed a loss of £725,000 (2023: £486,000).