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
First production is expected in 2026.

Latest Developments
Blencowe has completed an initial hydropower study for its graphite project.

The study has confirmed the availability of abundant, low-cost and renewable hydropower from the Ugandan national grid, providing a strategic advantage for the project's future mining and processing operations.

This marks a major step towards Blencowe's commitment to sustainability and its ambition to deliver a net-zero graphite operation.

Key findings of the study include plentiful renewable energy, whereby two high-capacity power transmission spurs extend to the regional grid near Orom-Cross, one from the Bujagali hydroelectric dam, in Jinga, and the other from the Isimba hydroelectric dam, both located on the Nile river.

This ensures a reliable supply of renewable energy to Orom-Cross, including redundancy, Blencowe has said.

Additionally, the study shows that Uganda's hydropower tariffs are significantly lower than regional African comparisons, positioning Orom-Cross as one of the lowest-cost graphite producers globally.

Blencowe is now working towards securing a long-term power purchase agreement with Uganda Electricity Transmission Company Limited to formalise the supply of low-cost hydroelectricity.

Orom-Cross will require 12 MW for Phase 2 commercial-scale production, scaling to 40 MW at full ramp-up, making power a critical cost factor.

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.