Orom-Cross Graphite Project

Q2 2021 – Stage 2 Resource Drilling

UNDERWAY

  • Targeting 20Mt Resource with 10Mt as Indicated /Measured (for first 10 years life of mine)
  • Represents <1% of total deposit
  • In situ average grade 7-8% but pockets of higher grade (>10%)
  • In situ -predominantly larger flake sizes

    • Q2 2021 - Phase 2 metallurgical test work targeting

    COMPLETED

    • 95-97% TGC (total graphite
    content)
    • Low impurities (thorium, vanadium, ash, sulphur)
    • High recoveries
    • High proportion Jumbo/XL/Large flakes within concentrate

    Studies Phase (2021/22)

    • 3Q 2021: Commencement of Internal Concept Study (PEA) – first economic assessment
    • 4Q 2021: Commencement of the Pre-Feasibility Study (PFS) – external sign off on project operations

    Blencowe acquired the Orom-Cross Graphite Project in April 2020 via the acquisition of 100% owned Ugandan subsidiary (Consolidated Resources Uganda). The Project lies within the Orom District, of northern Uganda. The Project tenements encompass an area of approximately 520,000 hectares stretching from Latitude 3°18’40’ to 3°30’40’ N and from Longitude 33°31’50’ to 33°45’40’ E. Access to site is approximately 28km via the Kidepo-Gulu road from Orom consisting of unsealed gravel roads.

    Work to date has outlined graphite mineralisation at the Project associated with deformed Neoproterozoic graphitic gneisses and schists. The Project’s Exploration Target is centred at Latitude 3º 23’ 30’ N and Longitude 33º 37‘00’ E within Mining Lease (ML1959) and a previous Exploration Licence which is now under application for a Retention Licence (RL1025).

    Prior to Blencowe acquiring Orom-Cross in 2021, Consolidated Resources Uganda had previously undertaken the following exploration activities:

    • field mapping;
    • geophysical surveys (VTEM and Aeromagnetic);
    • geological logging and geochemical analyses of drill core samples;
    • geological logging and geochemical analyses of trench samples;
    • metallurgical testwork of composites; and
    • determination of Exploration Target ranges.

    Blencowe acquired the Orom-Cross Graphite Project in April 2020 via the acquisition of 100% owned Ugandan subsidiary (Consolidated Resources Uganda). The Project lies within the Orom District, of northern Uganda. The Project tenements encompass an area of approximately 520,000 hectares stretching from Latitude 3°18’40’ to 3°30’40’ N and from Longitude 33°31’50’ to 33°45’40’ E. Access to site is approximately 28km via the Kidepo-Gulu road from Orom consisting of unsealed gravel roads.

    Work to date has outlined graphite mineralisation at the Project associated with deformed Neoproterozoic graphitic gneisses and schists. The Project’s Exploration Target is centred at Latitude 3º 23’ 30’ N and Longitude 33º 37‘00’ E within Mining Lease (ML1959) and a previous Exploration Licence which is now under application for a Retention Licence (RL1025).

    Prior to Blencowe acquiring Orom-Cross in 2021, Consolidated Resources Uganda had previously undertaken the following exploration activities:

    • field mapping;
    • geophysical surveys (VTEM and Aeromagnetic);
    • geological logging and geochemical analyses of drill core samples;
    • geological logging and geochemical analyses of trench samples;
    • metallurgical testwork of composites; and
    • determination of Exploration Target ranges.

    These activities all highlighted a considerable graphite deposit stretching over some 19kms length and 2 kms width, shallow in nature and containing up to 75% as jumbo-large flake size in situ.

    The Project is located approximately 6 km east (in a straight line) of the town of Orom and 75 km northeast of the town of Kitgum in northern Uganda (Figure 5-1). The Project can be accessed from the southwest via 104km of road from Gulu to Kitgum (Orom-Koputh road) and thereafter by 87km of gravel roads. The nearest large settlement to the Project is the village of Orom, located in Chua East Country.

    Since acquiring Orom-Cross Company has defined and delivered a substantial a work program that now includes:

    • an initial diamond drilling programme of 2,200m to deliver a maiden JORC Code Inferred Resource
    • a second in-fill diamond drill programme of 2,000m to deliver a substantial JORC 2012 Code Standard Indicated Resource;
    • substantial metallurgical test work to demonstrate upgrading mined graphite to a high grade concentrate for various end products that can be delivered to market; and
    • commencement of Feasibility Study on initial 10-year mine life, including all mining, plant, infrastructure and logistics.

    The development work above will underpin the Feasibility Studies Blencowe will perform on Orom-Cross from 2021 onwards to assess the commercial rationale for developing a substantial graphite mining operation at Orom-Cross.

    The Project is located approximately 6 km east (in a straight line) of the town of Orom and 75 km northeast of the town of Kitgum in northern Uganda (Figure 5-1). The Project can be accessed from the southwest via 104km of road from Gulu to Kitgum (Orom-Koputh road) and thereafter by 87km of gravel roads. The nearest large settlement to the Project is the village of Orom, located in Chua East Country.

    The Company has outlined a work program, initial work for which will include:

    • an in-fill programme to JORC 2012 Code Standard Resource;
    • metallurgical test work to demonstrate various end products that can be delivered to market; and
    • commencement of Feasibility Study on initial 10-year mine life, including all mining, plant, infrastructure and logistics.

    The principal aims of the above work programme are to gain further geological information to understand the potential, verify the graphite grade and continuity, and further understand the mineralogy within the most prospective parts of the Orom-Cross Graphite Project. Metallurgical testing is planned to be further undertaken early in 2020 as is an initial mineral resource estimate under the JORC 2012 Code.