Name of the Project
Orom-Cross graphite project.

Location
Uganda.

Project Owner/s
Graphite, nickel and copper developer Blencowe Resources.

Project Description
A prefeasibility study (PFS) has highlighted an exceptional long-life project that delivers considerable returns over an initial life-of-mine of 14 years.

An estimated 600 000 t/y of ore will be mined from the commissioning date and this will increase to 2.4-million tonnes a year by the time the project is fully ramped up in Year 10.

Mining will be free-dig, with no drill-and-blast required. Initial ore will come from saprolite (clay) at an average depth of about 15 m to 20 m. Both deposits (Northern syncline and Camp lode) identified in the drilling programmes will be mined and a composite blend of both will be fed into the processing plant that will be built on site.

An initial 36 000 t/y of end-product will be delivered from the plant as concentrates, which will increase in two additional stages to 147 000 t/y once the mine is fully ramped up. 

Further resources, higher production volumes and an extended mine life can all be obtained at any stage by drilling additional ready-targets. This, however, is not currently considered a priority.

The processing flowsheet comprises a flash and rougher flotation stage, followed by a primary cleaning circuit with a polishing mill and three stages of cleaner flotation. The intermediate concentrate is classified and then further upgraded in secondary cleaning circuits using stirred media mills, followed by cleaner flotation.

Orom-Cross will deliver at least five different end-products, characterised by size fractions of +50 mesh, + 80 mesh, +100 mesh, +150 mesh and -100 mesh. These products will have different markets and will be branded and packaged on site.

Initially, transport to port will be by road, but it is expected that a rail option might be available by 2025, further reducing logistics costs.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $482-million and an internal rate of return of 50%.

Capital Expenditure
The initial capital requirement has been lowered by 23%, to $62-million, since the preliminary economic assessment was announced in 2021. 

Planned Start/End Date
Blencowe will start the main operations from 2025 at an initial output of 36 000 t/y of end-product.

Latest Developments
Blencowe Resources has received a formal Letter of Interest (LoI) from the US International Development Finance Corporation (DFC), in which the DFC has indicated its willingness to participate in debt funding for the project, subject to all the necessary due diligence.

To date, grant funds totalling $2-million have been received under the DFC’s technical assistance grant, with the balance expected during 2024 as certain milestones are met.

The technical assistance grant also provides for the DFC to have the right to be mandated to directly provide – and/or arrange for – financing or investment for the project on commercial terms.

This LoI is the first step of engagement with the DFC project funding division to advance the financing process.

Blencowe will work closely with the DFC in 2024 to reach a decision to mine subject to the definitive feasibility study results and other due diligence requirements.

Graphite is high on the US government’s critical metals and minerals list, and its strategy is to open up long-term supply chains of graphite. 

Key Contracts, Suppliers and Consultants
Battery Limits (PFS); IMO (technical testwork); and CPC Engineering (DFS).

Contact Details for Project Information
Blencowe Resources, tel +44 1624 681 250 or email info@blencoweresourcesplc.com.