Blencowe Resources PLC (LSE:BRES) is moving to complete a pre-feasibility study on its Orom-Cross graphite project in Uganda by mid-year.
The plan is to put the project into production via a pilot plant in 2023.
Blencowe acquired Orom-Cross less than two years ago, and has been fast-tracking it to development ever since.
An extensive infill drilling programme was completed in 2021 to provide an updated resource estimate for use in the pre-feasibility study, and phase three metallurgical test work is near completion.
Orom-Cross is a substantial graphite deposit containing an estimated two-to-three billion tonnes of ore.
The first 20 years life of mine has already been drilled out, but this represents less than 1% of the estimated graphite within the tenements.
Furthermore, the graphite is shallow and Blencowe will be mining to just 25 meters which means low cost mining from a free dig open cut operation.
Although it could produce at a greater rate, at this stage Blencowe has indicated that it will go for a lower risk, lower capex start-up, producing around 25,000 tonnes per year of high grade concentrate.
There will be provision for ramping this plant size and production rate up quickly over the first ten years to accommodate what is expected to be a surge in demand for flake graphite, predominantly for use within lithium-ion batteries for electric vehicles.
The company is working closely with its specialist technical partner Battery Limits to deliver a low cost mining operation that will put Orom-Cross in the lowest percentile of worldwide graphite producers.
Currently Blencowe is awaiting the revised JORC Resource estimate for Orom-Cross, based on the extensive infill drilling programme from 2021, and its geological partner Minrom will provide this update shortly.
"Blencowe is moving quickly to establish itself as a producer of premier grade green graphite products, delivered at a low operating cost to both de-risk and to ensure highest possible margins,” said Blencowe’s chairman Cameron Pearce.
“The PFS is exploring all options, including a pilot plant from 2023 as a precursor to the main plant commissioned by 2025. Graphite demand is forecast to expand considerably from 2025 onwards and Blencowe wants to be positioned by then not only as a producer but also ready and able to expand quickly and cost-effectively to take advantage of growing worldwide demand.”