London-listed Blencowe Resources has completed all major infrastructure workstreams within the definitive feasibility study (DFS) for its Orom-Cross project, in Uganda, alongside the recent drilling campaign, which was the largest in the company's history. 

This drill programme was designed to increase the mineable reserves base, as well as explore a new deposit and it exceeded expectations.

Blencowe says much of this DFS work also fed into milestones set by the US International Development Finance Corporation (DFC) for grant funding, which the company says further validates Orom-Cross as a “world-class graphite project”. 

The DFC has invested $4.75-million to date of the total $5-million total grant funds with the remainder due on DFS completion.

DFS INFRASTRUCTURE PROGRESS

Blencowe notes that two separate substations on either side of Orom-Cross will provide access to abundant hydropower from Uganda's national grid, ensuring both low-cost renewable energy and redundancy.

The company says this positions Orom-Cross as a future supplier of "green graphite" with strong environmental, social and governance (ESG) credentials, which is a key requirement for battery offtakers.

A UK government-sponsored programme is under way to upgrade, widen and seal the Kitgum-to Kidepo road that passes near the project, with a major intersection designed to provide direct access to Orom-Cross.

Once completed, Blencowe says the route from site to Kenyan port access will be fully sealed, providing a significant long-term logistics advantage, particularly when Orom-Cross scales up.

Water, communications and camp facilities are all currently being established, with rail access from Gulu being considered as an option ahead. Together all these factors reduce upfront capital intensity and accelerate the pathway to production, the company notes.

The first permanent camp is being constructed at Orom-Cross with a view to providing initial accommodation for the first production phase ahead.

Blencowe notes that the Orom-Cross prefeasibility study delivered one of the lowest capital cost estimates to bring any significant new graphite project into production worldwide, and the DFS is expected to deliver a similarly positive result.

This advantage stems from all major infrastructure required for mine startup already being available and close to site including roads, power, water and communications.

The company explains that the result is threefold: substantial upfront capital cost savings, shorter timelines to reach first production and substantially less debt to service and repay over life-of-mine.

The company has also provided detailed reports to the DFC demonstrating how this infrastructure can be fully operational for startup, noting that this further validates Orom-Cross as a low-cost, fast-to-market project with unique logistics and ESG credentials.

In parallel, following further guidance from the laboratories, first assay results from the 6 750 m drilling programme are expected shortly.

Blencowe says these results will underpin what is anticipated to be a material upgrade to the Joint Ore Reserves Committee- (Jorc-) compliant resource, reflecting the “exceptional” drill campaign that has already indicated both extended mineralisation and a brand-new graphite deposit nearby at Beehive.

Executive chairperson Cameron Pearce says completing the infrastructure workstream is a major de-risking milestone for Orom-Cross.

He notes that having hydropower, water, communications and upgraded road access effectively in place translates into lower capital expenditure, shorter development timelines and a sustainable, ESG-compliant operation.

“We are also very encouraged by progress on the UK government-backed road programme, which will deliver sealed access to site and provide a significant logistics advantage as Orom-Cross scales into production.

“Our DFS is progressing well, and we look forward to showcasing something special. We anticipate being able to update the market on a completion date in the near future following the delivery of remaining technical work,” he says.

In the meantime, Pearce says the company has received guidance that the first assays from its drilling programme are expected shortly, feeding into what it expects to be a material uplift to the Jorc resource.

“With DFS, assays . . . and further offtake developments all ahead, we believe Orom-Cross is on the cusp of a major value inflection."