22nd Aug 2025 10:58
(Alliance News) - Blencowe Resources PLC on Friday said it has completed major feasibility work and a drill campaign at its maiden graphite project.
The London-based mining firm's sole license covers the Orom-Cross prospect in Uganda, which Blencowe describes as "a stable African country" for mineral exploitation.
According to Blencowe, "all major infrastructure workstreams" been executed for the site's definitive feasibility study. Drilling, which targeted a new deposit and aimed to make more graphite reserves mineable, yielded more positive results that the company expected.
The successful feasibility work has helped push Blencowe towards milestones which are required under a grant funding deal with the US government. As of Friday, the US International Development Finance Corp has given Blencowe USD4.75 million of a total USD5.0 million. The USD250,000 balance will be due once Blencowe has completed the feasibility study.
The company is positioning Orom-Cross as a low-cost, "world-class" source of graphite, which is used in battery and automotive production, as well as steel recycling.
Blencowe said the definitive study is on track for low capital expenditure as reported in the pre-feasibility stage, since Orom-Cross is located near existing infrastructure. The company plans to use hydropower from substations on either side of the mine, while the UK government is sponsoring the widening of a nearby road for better access to Orom-Cross.
The mining firm is currently setting up accommodation for the first phase of production, whilst waiting for test results on the first drill samples. Chair Cameron Pearce noted guidance that the results will lead to "a material uplift" in resource value.
"We believe Orom-Cross is on the cusp of a major value inflection," Pearce said.
"Completing the infrastructure workstream is a major de-risking milestone for Orom-Cross. Having hydro-grid power, water, communications and upgraded road access effectively in place translates into lower capex, shorter development timelines and a sustainable, ESG-compliant operation."
Blencowe shares were 8.4% higher at 4.39 pence on Friday morning in London.
By Holly Munks, Alliance News reporter
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