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 +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
Graphite processing company Jilin New Technology Graphite, which successfully completed a 100 t bulk sample on the project for Blencowe in 2023, has now completed a 600 t bulk sample to concentrates. 

About 30 t of concentrate has been produced, representing a substantial sample size for the company to use for ongoing trials at various offtakers for large- and small-flake products.

Test results indicate a very high-quality 96% concentrate for small-flake products and 96% to 97% concentrate for large-flake products (+100 mesh, +80 mesh and +50 mesh). The concentrate mix is 55% small flakes and 45% large flakes.

Jilin has highlighted its support for the larger flake Orom-Cross concentrate product by signing a memorandum of understanding for 15 000 t/y, announced to the market in May.

Blencowe now has a substantial quantity of large- and small-flake concentrate products to apply further testing for potential offtakers. Spheronised purified graphite (SPG) producer Qingdao Taida Carbon will beneficiate 20 t of small-flake concentrate into 10 t of 99.95% uncoated SPG over the next month as the final step in the qualification process.

The bulk sample testing and qualification process is proceeding as planned, with the end goal being offtake agreements with several tier-one partners. The completion of this stage of the testwork is a milestone for another tranche of Development Finance Corporation (DFC) grant funding to be released shortly. 

Work has now started at Qingdao Taida Carbon to deliver 10 t of high-quality uncoated SPG product from the small-flake concentrate. This has been successfully completed through smaller scale testing, but this will be the first commercial-scale delivery of SPG from Orom-Cross to provide necessary samples for high-profile tier-one offtakers to test at their own facilities.

Once the original-equipment manufacturer testing has been completed by the end of the June quarter, Orom-Cross will, effectively, be qualified and have the ability to progress to offtake agreements for all end-products used in batteries.

Taida has been producing uncoated SPG for more than two decades and has one of the most advanced facilities in China. Having Taida expertise manage Orom-Cross concentrate to SPG is a key advantage, Blencowe has said.

The company is developing a broader graphite strategy to incorporate downstream processing, in Uganda, to deliver 99.95% SPG made in-country, and will aim to include leading experts, such as Taida, in that strategy.

This proposed facility would be the first commercial-scale SPG operation outside of China, and Blencowe would produce a valuable downstream product that other graphite mining peers cannot easily replicate. The company will continue to provide updates as this strategy evolves.

The process to complete all necessary metallurgical testwork, including bulk sample testing, is a prerequisite for all graphite miners that want to sell their end-products in battery markets. End-users are particularly discerning and will not consider offtake agreements until this work is adequately completed and qualification is attained.

The end target is offtake agreements for 100% of the products that Blencowe will mine and process from Orom-Cross, and to achieve the highest quality that builds strong tier-one relationships and delivers the highest prices. 

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.