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
Blencowe Resources has signed its first nonbinding memorandum of understanding (MoU) for natural large flake concentrate offtake from Orom-Cross.
Under the terms of the MoU, vertically integrated graphite producer Jilin New Technology Graphite intends to buy 15 000 t/y of large-flake graphite from the mine. This equates to about 66% of the Orom-Cross large-flake production for up to three years from the start of operations.
Jilin is the parent company of a group that completed a 100 t bulk sample for Blencowe in 2023 and is undertaking a 600 t bulk sample processing programme, which is nearing completion.
The 600 t bulk sample will generate commercial-scale graphite concentrate divided into large and small flakes.
The small-flake concentrate will be upgraded to 99.95% by a Chinese spheronised purified graphite producer, to be distributed to original-equipment manufacturers for their own testing.
This exercise is expected to be completed in the third quarter of 2024, consequently facilitating the qualification of Orom-Cross small-flake products with tier-one offtakers and paving the way for offtake agreements that are under discussion.
Blencowe is hopeful of securing further MoUs while advancing a definitive feasibility study for the project.
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.