Blencowe Resources (LSE:BRES) shares climbed close to 20% in Monday morning's trade, changing hands at 9.5p, after it released results of the definitive feasibility study for the Orom-Cross graphite project in Uganda.
The study assumes a 15-year mine life and indicates that only about 2% of the deposit has been drilled to date.
Blencowe highlighted that the project delivers an NPV of US$1.087 billion and an internal rate of return of 96%. Initial capital requirements are estimated at US$40 million for phase one, and US$120 million for phase two, with operating costs of US$485 per tonne over the mine life. Non-binding offtakes are already in place for phase one volumes.
The company added that it will now focus on securing financing for phase one, with discussions underway with development finance institutions, strategic partners and institutional investors.
The company targets first production in the first half of 2027 and plans to expand production through a downstream facility producing purified graphite products.