Blencowe Resources PLC (LSE:BRES) has told investors that assay results from shallow drilling at the Iyan deposit, at the Orom-Cross graphite project in Uganda, have confirmed thick and continuous near-surface graphite mineralisation.
“We are seeing even the Orom-Cross's bulk-tonnage mineralisation deposits delivering multiple higher-grade zones, which is a standout characteristic for a graphite project of this scale and consistency," said executive chair Cameron Pearce.
"These initial Iyan results reinforce the underlying quality of the Orom-Cross asset and its suitability for long-life, low-cost production."
The company completed 72 shallow drill holes at Iyan as part of its Stage 7 drilling programme. Results have been received from the first 15 holes. These are considered representative of the wider programme.
Most holes intersected graphite mineralisation from surface to the planned end-of-hole depth of around 30 metres, it added.
Several holes ended in mineralisation, indicating potential for continuation below current drilling depths. Selected results included intercepts of more than 30 metres, with average grades broadly consistent with assumptions used in the definitive feasibility study. The drilling also identified multiple higher-grade zones within broader bulk mineralisation.
Blencowe said the results support the potential to add near-surface tonnage within trucking distance of planned processing facilities. The Iyan deposit has been defined over a strike length of about 1,800 metres, with scope for extensions to the south and west.
Cameron Pearce added: "The exceptional results in all of the six deep holes we drilled underline the massive potential for depth extensions across the system, which could contribute to additional resources and further extension of mine life as the geological limits to this project continue to be evaluated.
"With further results progressing through independent validation and a resource update to follow, these outcomes come at an important time as we advance funding and downstream discussions.
"In a market increasingly focused on securing sustainable, high-grade, non-Chinese graphite via new critical mineral supply chains, Orom-Cross stands out for both scale and product quality, supported by renewable hydroelectric power."
Further assay results are expected following independent validation by geological consultants, the company noted.